MRC Global – #7 on the 2015 ID Big 50 List – has announced the results of its Q3 and, though the company beat expectations, its sales were weak across all three operating segments. MRC Global reported $1.071 billion in sales, which was 34% lower than the year-ago quarter, and 11% lower than the second quarter.
The company has cited the weak energy markets and strong dollar as the reason for its rough go this year. According to Motley Fool, sales in the U.S. were hit hard by reduced customer spending, especially with the upstream sector, which saw a $227 million reduction in sales. The upstream sector in Canada was also very weak, with sales down $81 million year over year to those customers.
Meanwhile, the strong U.S. dollar affected revenue by another $14 million in Canada. Finally, international sales fell due to lower project activity and the deferral of maintenance, repair, and operations expenses, especially in Europe, Norway, and Australia. Further, like Canada, the strong U.S. dollar had a negative impact on sales, resulting in a further $30 million year-over-year decrease in revenue.
Andrew R. Lane, MRC Global's chairman, president and chief executive officer stated, "The third quarter results reflect the continued decline in spending by our customers in response to the current oil and gas commodity price environment. I'm pleased with our performance in this difficult market. We are focused on what we can control: winning and retaining customers, controlling costs and strengthening our balance sheet."
To that end, MRC has promoted some good news as of late, including a September announcement that its subsidiary, McJunkin Red Man Corporation, had signed a five-year contract to supply pipe, valve and fitting products and services for Phillips 66. Earlier this week, MRC Global announced that its Norwegian subsidiaries, MRC Teamtrade and MRC Energy Piping, have been awarded major contracts to support Statoil's Johan Sverdrup project in the North Sea.