Posted August 3, 2016

MRC Global 2Q sales plunge

MRC Global reported second quarter sales were $746 million, 38% lower than the second quarter of 2015 and 5% lower than the first quarter of 2016.

As compared to last year, reduced customer activity across all segments and sectors drove the decline as a result of lower oil and natural gas prices.

Net loss attributable to common stockholders for the quarter was $23 million, or 24 cents per diluted share, compared to net income of $15 million, or 15 cents per dshare for the second quarter of 2015. T

"Revenue was in line with our expectations this quarter. Looking forward, we do not expect a significant change in activity until customers increase capital spending," saidAndrew R. Lane, MRC Global's president and chief executive officer.

U.S. sales were $551 million, down 42% from the same quarter in 2015. The decrease reflects a 66% decrease in the upstream sector, which includes a $78 million impact from the sale of the company's U.S. oil country tubular goods product line, a 32% decrease in the midstream sector and a 31% decrease in the downstream sector.

Canadian sales were $54 million, down 31% from the same quarter in 2015. Approximately $3 million of the total decline was a result of a weaker Canadian dollar relative to the U.S. dollar.

International sales were $141 million, down 14% from the same period in 2015. The decrease was due to the combined impact of lower project activity and deferral of maintenance, repairs and operations expenditures particularly in Norway and Australia.