MRC Global on Wednesday reported a slight decline in third quarter sales but a jump in earnings and profits.
The Houston-based company, which supplies pipe, valves, fittings and other components to the energy, industrial and utility sectors, posted $888 million in sales between July and September, down 2% compared to the $904 million reported in the third quarter of 2022.
The company said its operating income rose from $45 million to $57 million in the latest quarter, while net income increased from $24 million to $35 million. Gross profit also increased from $165 million to $183 million.
Diluted earnings climbed from $0.21 to $0.33 per share.
MRC officials said the company saw increased year-over-year sales in its production and transmission infrastructure division due to increased project activity in both the Rocky Mountain region and the Permian basin in West Texas and New Mexico. That jump, however, was more than offset by a drop in its gas utilities business, which fell 12%. The company blamed decreased capital spending amid efforts to reduce inventories, as well as project delays due to inflated construction costs and higher interest rates.
MRC’s downstream, industrial and energy transition division grew slightly in the latest quarter; its sales in the U.S. alone were down 3%.
“We are pleased to have achieved adjusted gross profit margins in excess of 21%, operating cash flow of over $100 million and adjusted EBITDA margins of 7.9%,” MRC President and CEO Rob Saltiel said in a statement. “The value of our end-market diversification is evident as year-to-date revenue gains in the PTI and DIET sectors have countered the temporary weakness we are experiencing in gas utilities."
MRC Global came in at no. 10 on ID’s 2023 Big 50.
