MRC Global Inc. has recently released its 10-K report, showcasing its position as the leading global distributor of pipe, valves, fittings, and other infrastructure products and services to diversified energy, industrial, and gas utility sectors. The company offers approximately 200,000 SKUs, including an extensive array of PVF, oilfield supply, valve automation and modification, measurement, instrumentation, and other general and specialty products from its global network of over 7,100 suppliers. MRC Global Inc. serves over 8,300 customers through 197 service locations, providing best-in-class service and a one-stop shop for customers with an average relationship of approximately 35 years with its 25 largest customers.
In the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, MRC Global Inc. outlines several key drivers of its business. These include gas utility and energy infrastructure integrity and modernization, oil and natural gas demand and prices, economic conditions, manufacturer and distributor inventory levels of PVF and related products, and steel prices, availability, and supply and demand. The report also highlights the completion of the sale of its Canadian operations to EMCO Corporation, with the proceeds intended for debt reduction.
Looking ahead, the report mentions the impact of recent policy changes, including executive orders terminating U.S. participation in the Paris Climate Agreement and supporting U.S. oil and gas producers. It also discusses the potential impact of policy changes on its business, such as decreasing the regulatory and tax burden, increasing oil and gas production in the U.S., and potentially increasing business activity and sales of products from U.S. suppliers.
The market has reacted to these announcements by moving the company's shares 2.2% to a price of $11.35. For more information, read the company's full 10-K submission here.
