MRC Global, which brands itself as the largest global distributor of PVF products and services, reported its 2020 fourth quarter and full-year financial results on Thursday, showing that while year-over-year and sequential sales continued to improve since the height of the pandemic's impacts, they were still down by the same considerable deficit that the company had a year earlier.
Houston-based MRC — No. 7 on Industrial Distribution's 2020 Big 50 List — said it closed five facilities in Q4 and 27 in 2020, while reducing headcount by 73 in Q4 and 597 in 2020. The company noted that about two-thirds of its recent cost reductions were structural. MRC lowered its operating costs by $113 million in 2020 compared to 2019. It reduced debt by $105 million in Q4 and by $255 million for the full year, ending the year with a net debt of $264 million — almost half of what it started 2020 with.
E-commerce represented 39 percent of MRC's Q4 revenue, and 35 percent of full-year 2020 revenue, including 42 percent in North America.
MRC's Q4 gross profit margin was 15.5 percent, down from 17.1 percent a year earlier and 19.5 percent in Q3. Adjusted Q4 gross profit was 19.7 percent, identical to a year earlier. Q4 operating loss was $7 million, compared to a $10 million loss a year earlier and a $14 million profit in Q3.
MRC took a Q4 net loss of $5 million, compared to a $24 million loss a year earlier and a $3 million profit in Q3.
- By geography in Q4: US sales of $448 million were down 26 percent year-over-year; International sales of $108 million were down 6 percent; and Canadian sales of $23 million were down 47 percent.
- By sector in Q4: Gas utilities sales of $217 million (37 percent of total) were up 21 percent year-over-year; Down stream and industrial sales of $174 million (30 percent of total) were down 29 percent year-over-year; Upstream production sales of $126 million (22 percent of total) were down 44 percent year-over-year; Midstream pipeline sales of $62 million (11 percent of total) were down 47 percent year-over-year.
"The COVID-19 pandemic and related mitigation measures have created significant volatility and uncertainty in the oil and gas industry," the company said Thursday. "Oil demand has significantly deteriorated as a result. The unparalleled demand destruction has resulted in lower spending by our customers and reduced demand for the company's products and services. Although we have seen a modest improvement in oil demand, uncertainty exists as to when a more significant recovery will occur."
