MRC Global raised its outlook for the year after sales jumped more than 20% in the first quarter. The Houston distributor of pipe, valves, fittings, and other industrial products said that sales rose from USD 609M in the first quarter of 2021 to USD 742M in the latest reporting period. Gross profit climbed from USD 103M to USD 136M and operating income increased from USD 3M to USD 29M.
Net income reached USD 16M in the latest quarter after a loss of USD 3M in the previous first quarter. Earnings per share reversed a USD 0.11 loss in early 2021 to hit USD 0.12 in the most recent quarter, and company officials said adjusted EBITDA doubled over that span.
Citing strong first-quarter results, favorable business fundamentals, and a growing backlog of USD 667N, the company raised its outlook to “USD 3.1bn in sales and USD 200M of adjusted EBITDA,” MRC President and CEO Rob Saltiel said in a statement.
The company attributed the January-March results to strong performances by its upstream production and downstream, industrial, and energy transition sectors, whose sales increased 21% and 16% year-over-year, respectively. Midstream pipeline sales increased 12%, while gas utility sales rose 29%.
“We expect revenue in all four of our business sectors to be up double-digit percentages in 2022,” Saltiel said.
