MRC Global sales down 26 percent
MRC Global reported sales of $719 million for the fourth quarter of 2016, 26% lower than the fourth quarter of 2015 and 9% lower than the third quarter of 2016.
Compared to last year, reduced customer activity across all segments and sectors drove the decline, the company said.
Net loss attributable to common stockholders for the fourth quarter of 2016 was $24 million, or 25 cents per diluted share, compared to a loss of $399) million, or $3.92 per diluted share for the same period of 2015.
Andrew R. Lane, MRC Global's president and chief executive officer stated, "As expected, fourth quarter revenue was down 9% sequentially due to seasonality primarily driven by U.S. midstream. However, we are encouraged as sequential revenue for our U.S. upstream business increased 8%, as well completion activity is increasing."
"While the last two years have been challenging in the oil and gas markets, we are in a strong position to capitalize on the improving market conditions. Over the past two years, since the downturn began, we executed our strategic objectives. We have gained valuable market share, generated $943 million in cash from operations, reduced debt by $1 billion, reduced operating costs by 27% and returned $107 million to shareholders. These actions have allowed us to strengthen our position as the leading PVF distributor and now we are ready to return our focus to growing with our customers again."
"Looking ahead, we expect 2017 results to be improved over 2016 and we are looking forward to returning to sales and earnings growth across each of our segments and sectors."
U.S. sales in the fourth quarter of 2016 were $550 million, down $228 million or 29% from the same quarter in 2015.