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 USD609 million in the first quarter of 2021 to USD742 million in the latest reporting period. Gross profit climbed from USD103 million to USD136 million and operating income increased from USD3 million to USD29 million.
Net income reached USD16 million in the latest quarter after a loss of USD3 million in the previous first quarter. Earnings per share reversed an USD0.11 loss in early 2021 to hit USD0.12 in the most recent quarter, and company officials said adjusted EBITDA doubled over that span.
Citing strong first-quarter results, favorable business fundamental and a growing backlog of USD667 million, the company raised its outlook to “USD3.1 billion in sales and $200 million 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.