Posted May 7, 2018

MRC Global hits Q1 sales of $1 billion

MRC Global reported sales of $1.010 billion for the first quarter of 2018, 12% higher than the fourth quarter of 2017. 

Net income attributable to common stockholders for the first quarter of 2018 was $12 million, or $0.13 per diluted share, compared to $0 million, or $0.00 per diluted share for the first quarter of 2017.

"This is the first quarter in the past 10 that revenue has been over $1 billion. Adjusted EBITDA was also strong at $59 million, or 5.8% of sales, in the first quarter. With the macroeconomic conditions across all our end-markets improving, our solid customer contract position and the first‑class execution our team delivers, we expect our performance to show continued strength in 2018," said Andrew R. Lane, MRC Global's president and chief executive officer.

U.S. sales in the quarter were $806 million, up 21% from the same quarter in 2017. All end-markets experienced strong growth with downstream leading, primarily driven by deliveries related to a large ongoing project in Pennsylvania, followed by midstream, driven by an increase in gathering line work, multiple transmission projects and gas utility activity, and finally, upstream, where higher well completion counts, and customer activity drove the increase.

Canadian sales were $78 million, up 1% from the same quarter in 2017 as improvements in the midstream and downstream businesses were partially offset by lower upstream revenue driven by a lower rig count. A stronger Canadian dollar relative to the U.S. dollar had a favorable impact of approximately $3 million.

International sales of $126 million were up 6%. The increase was primarily due to upstream project activity in Kazakhstan partially offset by non-recurring midstream pipeline project sales in Australia. Stronger foreign currencies relative to the U.S. dollar had a favorable impact of approximately $11 million.