Baton Rouge, LA - Edgen Group Inc. a leading global distributor of specialized products including steel pipe, valves, plate, and related components to the energy sector and industrial infrastructure markets, today reported its financial results for the three and six months ended June 30, 2013.
Second Quarter 2013 Financial Highlights
The group's net sales were $431.6 million, down 13.1% from $496.5 million in the second quarter of 2012, but up 6.3% from $406.1 million in the first quarter of 2013.
Sales backlog of $274 million at June 30, 2013 was down 32.3% from June 30, 2012, but up 5.8% from March 31, 2013
Gross margin remained relatively flat at 11.9% during the second quarter of 2013 as compared to 11.8% during the second quarter of 2012 and 12.2% during the first quarter of 2013
Gross margin for the Energy & Infrastructure (“E&I”) segment was 14.7%, up 1.0% from the second quarter of 2012 and up 0.3% from the first quarter of 2013
Gross margin for the Oil Country Tubular Goods (“OCTG”) segment was 9.1%, down 0.7% from the second quarter of 2012 and 0.9% from the first quarter of 2013
Income from operations was $17.3 million, down 22.8% from $22.4 million in the second quarter of 2012, but up 10.2% from $15.7 million in the first quarter of 2013
Net loss was ($0.3) million for the second quarter of 2013 as compared to ($13.8) million in the second quarter of 2012 and ($5.4) million in the first quarter of 2013
Adjusted EBITDA was $24.7 million compared to $34.1 million in the second quarter of 2012 and $23.9 million in the first quarter of 2013
“We are pleased to announce increased sales and backlog over the first quarter of 2013,” said Dan O’Leary, Chairman and Chief Executive officer. “Elevated quotation activity and recent project bookings at the close of the second quarter reinforce our optimism about future opportunities for Edgen Group, particularly into 2014. Pricing pressure and project delays still had an impact in the second quarter, however we remained focused on improving the mix of products that we sold, providing exceptional service to our customers with active drilling programs, and adding new customers, especially in areas that we expect will gain traction when market conditions improve.”
Second Quarter 2013 Leading Market Indicators
| Three months ended | % Change | ||||||||||||||
| June 30, 2013 | March 31, 2013 | June 30, 2012 | March 31, 2013 to June 30, 2013 | June 30, 2012 to June 30, 2013 | |||||||||||
| Average rig count: | |||||||||||||||
| Worldwide total rig count(1) | 3,222 | 3,569 | 3,372 | -10% | -4% | ||||||||||
| Worldwide offshore rig count(1) | 386 | 368 | 357 | 5% | 8% | ||||||||||
| US onshore drilling rig count(1) | 1,710 | 1,706 | 1,924 | 0% | -11% | ||||||||||
| Average commodity prices: | |||||||||||||||
| WTI crude oil per barrel(2) | $ 94.05 | $ 94.33 | $ 93.29 | 0% | 1% | ||||||||||
| Brent crude oil per barrel(2) | 102.56 | 112.44 | 108.04 | -9% | -5% | ||||||||||
| Natural gas ($/Mcf)(2) | 4.02 | 3.49 | 2.29 | 15% | 76% | ||||||||||
| Domestic hot rolled coils per ton(3) | 604.00 | 621.00 | 640.00 | -3% | -6% | ||||||||||
| Average footage drilled: | |||||||||||||||
| Worldwide total (Mil)(4) | 134.6 | 150.8 | 130.9 | -11% | 3% | ||||||||||
| U.S. onshore (Mil)(4) | 99.0 | 98.4 | 96.7 | 1% | 2% | ||||||||||
| (1) Source: Baker Hughes Incorporated (www.bakerhughes.com) | |||||||||||||||
| (2) Source:Department of Energy, EIA (www.eia.gov) | |||||||||||||||
| (3) Source: Preston Pipe and Tube Report, July 2013 | |||||||||||||||
| (4) Source: Spears & Associates, Inc. Drilling and Production Outlook, June 2013 | |||||||||||||||
