MRC Global Inc. on Tuesday reported a decline in second-quarter sales and profit but an increase in earnings compared to the same quarter last year.
The Houston-based pipe, valves and fittings distributor — no. 10 on ID’s latest Big 50 list — posted sales of $832 million between April and June, down 4% from the $871 million reported during that span in 2023.
Sales were off by 11% in MRC’s gas utilities and production and transmission infrastructure business, while its downstream, industrial and energy transition segment saw a 9% increase despite project delays in that market. MRC President and CEO Rob Saltiel also noted that the company dealt with slowing activity in U.S. oilfields during the quarter.
Still, the company’s gross profit edged down only slightly — from $175 million down to $173 million — while its operating income rose from $45 million to $47 million year-over-year. Net income climbed from $24 million to $30 million, and diluted earnings came in at $0.28 per share, up from $0.21 in the same period last year.
“We have generated $101 million in operating cash flow through the first half of 2024, and we are tracking well to meet or exceed our annual operating cash flow target of $200 million,” Saltiel said in a statement.
Saltiel also said that the company repaid its Term B Loan during the most recent quarter and reduced its net debt to a record low of $103 million. He said that as the company generates “significant” cash in the coming years, it will be in a position to consider “various capital allocation alternatives.”
