The largest global distributor of valves, pipes and fittings and related products and services to the energy and industrial sectors, MRC Global Inc. announced it’s first quarter 2012 financial results. The company’s sales of US1.383billion are up 39% from the first quarter 2011 earnings of US992million.
The net income was US37.5million, equivalent to US0.44 per diluted share, compared to a net loss of US1.1million or US0.01 per share in 2011’s first quarter. Adjusted EBITDA increased 92% to US115.2million in comparison to US60million in the first quarter of 2011. The sales increase set a first quarter record.
Increased activity in the North American shale plays has contributed to the 35% sales increase to US1.261billion of MRC’s North American segment. The acquisition of Australia-based Stainless Pipe & Fittings and OneSteel Piping Systems has helped the international segments increase 105% to US122million.
Sales made to the upstream sector increased by 39% over the previous year to US650million, or 47% of sales. Midstream sales accounted for 26% of the sale, increasing 58% to US360million, continuing to be MRC’s fastest growing sector. Downstream sector sales grew 25% to US373million.
Gross profit was 17.1% of sales or US236.6million, whereas the first quarter of 2011 it was 14.8% of sales or US147million.