MRC Global Q4 2020 Earnings Report
Key Takeaways
MRC Global's fourth quarter sales were $579 million, a 24% decrease compared to Q4 2019. The net loss attributable to common stockholders was ($11) million, or ($0.13) per diluted share.
Sales for the fourth quarter of 2020 were $579 million, 1% lower than the third quarter of 2020 and 24% lower than the fourth quarter of 2019.
Net loss attributable to common stockholders for the fourth quarter of 2020 was ($11) million, or ($0.13) per diluted share.
Adjusted EBITDA was $22 million in the fourth quarter of 2020 compared to $23 million for the same period in 2019.
Cash provided by operations was $83 million in the fourth quarter of 2020.
MRC Global
MRC Global
MRC Global Revenue by Segment
MRC Global Revenue by Geographic Location
Forward Guidance
The COVID-19 pandemic and related mitigation measures have created significant volatility and uncertainty in the oil and gas industry, resulting in lower spending by customers and reduced demand.
Positive Outlook
- MRC Global has remained operational with no closures to any facilities.
- Office staff has returned to the office in varying degrees depending on the stage of the pandemic at each locality.
- MRC Global has implemented various safety measures for employees working in the company’s facilities and implemented remote working for those whose jobs permit it.
- MRC Global is committed to a safe working environment for all employees and is constantly monitoring its response in the locations where the company operates.
- The company has fulfilled orders with little disruption from a supply chain perspective.
Challenges Ahead
- Oil demand has significantly deteriorated as a result of the pandemic.
- The unparalleled demand destruction has resulted in lower spending by our customers and reduced demand for the company’s products and services.
- Uncertainty exists as to when a more significant recovery will occur.
- As of February 2, 2021, the company had 10 active COVID-19 illnesses reported, which is 0.4% of our global workforce.
- The COVID-19 pandemic and related mitigation measures have created significant volatility and uncertainty in the oil and gas industry.
Revenue & Expenses
Visualization of income flow from segment revenue to net income