MRC Global Inc. reported its financial results for the third quarter and the first nine months of 2024, revealing a decline in both revenue and profitability compared to the same periods in 2023. For Q3 2024, the company generated sales of $797 million, a decrease of $91 million (10%) from $888 million in Q3 2023. Year-to-date sales for the first nine months totaled $2,435 million, down $209 million (8%) from $2,644 million in the prior year. The decline in revenue was attributed to reduced activity in key sectors, particularly Gas Utilities, Production and Transmission Infrastructure (PTI), and Downstream, Industrial, and Energy Transition (DIET).
Gross profit for Q3 2024 was $160 million, down from $183 million in Q3 2023, while gross profit for the first nine months decreased to $496 million from $537 million. Operating income also fell significantly, with Q3 2024 reporting $37 million compared to $57 million in Q3 2023, and year-to-date operating income of $122 million, down from $159 million. Net income for Q3 2024 was $29 million, a decrease from $35 million in the same quarter last year, and net income for the first nine months was $78 million, down from $93 million.
The company’s balance sheet showed a decrease in total current assets, which fell to $1,043 million from $1,155 million as of December 31, 2023. Cash reserves also declined to $62 million from $131 million during the same period. Long-term debt increased to $85 million from $9 million, reflecting the company’s financing activities, including the repayment of a senior secured term loan and the establishment of a new $350 million term loan facility.
MRC Global's operational performance was impacted by a 10% decrease in revenue from the Gas Utilities sector for the first nine months of 2024, attributed to non-recurring projects and reduced customer inventory levels. The DIET sector also saw a 1% decline in revenue, while PTI experienced an 11% decrease. Despite these challenges, the company noted that long-term growth fundamentals remain intact, particularly in the energy transition segment, which is expected to benefit from increased customer activity and government incentives.
In terms of strategic developments, MRC Global repurchased all outstanding shares of its Series A Convertible Perpetual Preferred Stock for $361 million, along with accrued dividends, on October 30, 2024. The company also granted various performance share unit awards and restricted stock awards to its executive management and employees in 2024, indicating a focus on incentivizing key personnel.
Overall, MRC Global's financial results reflect a challenging market environment, with significant declines in revenue and profitability, while the company continues to navigate its strategic initiatives and operational adjustments.
About MRC GLOBAL INC.
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