MRC Global (MRC) saw its loss narrow to $18 million, or $0.25 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $393 million, or $3.92 a share.
Revenue during the quarter dropped 25.65 percent to $719 million from $967 million in the previous year period. Gross margin for the quarter contracted 113 basis points over the previous year period to 16.97 percent. Operating margin for the quarter stood at negative 0.83 percent as compared to a negative 44.78 percent for the previous year period.
Operating loss for the quarter was $6 million, compared with an operating loss of $433 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $17 million compared with $34 million in the prior year period. At the same time, adjusted EBITDA margin contracted 115 basis points in the quarter to 2.36 percent from 3.52 percent in the last year period.
Andrew R. Lane, MRC Global’s president and chief executive officer stated, "As expected, fourth quarter revenue was down 9% sequentially due to seasonality primarily driven by U.S. midstream. However, we are encouraged as sequential revenue for our U.S. upstream business increased 8%, as well completion activity is increasing."
Operating cash flow drops significantlyMRC Global has generated cash of $253 million from operating activities during the year, down 63.33 percent or $437 million, when compared with the last year. Cash flow from investing activities was $16 million from investing activities during the year as against cash outgo of $41 million in the last year.
The company has spent $226 million cash to carry out financing activities during the year as against cash outgo of $599 million in the last year period.
Cash and cash equivalents stood at $109 million as on Dec. 31, 2016, up 57.97 percent or $40 million from $69 million on Dec. 31, 2015.
Working capital drops significantly
MRC Global has witnessed a decline in the working capital over the last year. It stood at $684 million as at Dec. 31, 2016, down 28.82 percent or $276.94 million from $960.94 million on Dec. 31, 2015. Current ratio was at 2.58 as on Dec. 31, 2016, down from 3.16 on Dec. 31, 2015.
Debt comes downMRC Global has recorded a decline in total debt over the last one year. It stood at $414 million as on Dec. 31, 2016, down 20.23 percent or $105 million from $519 million on Dec. 31, 2015. Total debt was 19.13 percent of total assets as on Dec. 31, 2016, compared with 20.75 percent on Dec. 31, 2015. Debt to equity ratio was at 0.37 as on Dec. 31, 2016, down from 0.54 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
