Q3 2024 MRC Global Inc Earnings Call Transcript
Key Points
- MRC Global Inc (MRC) successfully simplified its capital structure by issuing a new $350 million term loan, which allowed the repurchase of convertible preferred shares at a discount.
- Moody's upgraded MRC Global Inc (MRC)'s credit rating following the capital restructuring, indicating improved financial stability.
- The company achieved a record low net working capital to sales ratio of 14.3%, demonstrating efficient working capital management.
- MRC Global Inc (MRC) increased its 2024 operating cash flow guidance to $220 million or more, surpassing its initial target a quarter early.
- The international segment showed strong performance with a 21% year-over-year revenue growth, driven by European projects and energy transition initiatives.
- Third quarter revenue declined by 4% sequentially, impacted by slowing oilfield activity in the US and project delays.
- Adjusted EBITDA margins decreased to 6% in the third quarter, down from higher levels earlier in the year due to lower sales and gross margins.
- The PTI sector experienced an 8% revenue decline, primarily due to reduced US oilfield activity and project completions.
- The company anticipates a seasonal revenue decline in the fourth quarter, with expectations of an upper single-digit percentage drop.
- US LNG-related activity faced challenges due to permitting delays, affecting the diet sector's performance.
Greetings and welcome to MRC Global's third quarter, 2024 earnings conference call. (Operator instruction). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, MS Monica Broughton, Vice President, Investor Relations and Treasury. Thank you, MS Broughton. You may begin.
Thank you and good morning. Welcome to the MRC Global third quarter, 2024 conference call and webcast. We appreciate you joining us on the call today. We have Rob Saltiel, President and CEO and Kelly Youngblood, Executive Vice President and CFO. There will be a replay of today's call available by webcast on our website MRCglobal.com as well as by phone until November 20th, 2024. The dial in information is in yesterday's release. We expect to file our quarterly report on form 10-Q later today and it will also be available on our website.
Please note that the information reported on this call speaks only as of today, November 6th. And therefore you are advised that information may no longer be
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
