Houston-based MRC Global reported its 2016 third quarter fiscal results on Thursday, which showed the company achieved its first quarter of sequential sales growth since 2014, while overall sales and profit continued to decline.
MRC — No. 9 on Industrial Distribution's 2016 Big 50 List — posted Q3 sales of $793 million, down 26 percent year-over-year, but up 6 percent from Q2. The company said reduced customer activity across all sectors drove the decline as a result of lower oil and gas prices.
MRC took a net loss of $46 million in Q3, compared to a profit of $10 million a year earlier. Gross profit of $88 million was down from $185 million a year earlier.
The company's Q3 selling, general and administrative costs of $124 million were down from $142 million a year earlier.
MRC's U.S. sales of $590 million in Q3 were down 32 percent year-over-year. The company said the decline reflects a 56 percent decrease in the upstream sector — which included a $63 million impact from the sale of its U.S. oil coutnry tubular goods segment — along with a 17 percent decrease in midstream and a 28 percent decrease in downstream. Sequential U.S. upstream sales were up 15 percent from Q2.
MRC's Q3 Canadian sales of $70 million were flat year-over-year, while International sales of $133 million were down 2 percent.
By sector:
- Upstream Q3 sales of $224 million (28 percent of total sales) were down 41 percent year-over-year.
- Mistream Q3 sales of $327 million (41 percent of total sales) were down 12 percent year-over-year. Sales to transmission customers were down 22 percent and sales to gas utility customers were flat with the same.
- Downstream Q3 sales of $242 million (31 percent of total sales) were down 25 percent year-over-year.
