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CORRECTED-MRC Global profit misses estimates on lower oil and gas prices
August 7, 2012 / 9:41 PM / 5 years ago

CORRECTED-MRC Global profit misses estimates on lower oil and gas prices

(Corrects first bullet point to clarify that the company reported adjusted earnings per share of 39 cents, not 36 cents)

* Second-quarter adj earnings $0.39/share vs est $0.41/share

* Second-quarter rev $1.43 bln vs est $1.44 bln

* Sees 2012 rev $5.50 bln-$5.65 bln vs est $5.65 bln

Aug 7 (Reuters) - Energy industry supplier MRC Global Inc reported a quarterly profit that missed analysts’ expectations due to a fall in oil and natural gas prices, but the company raised its full-year revenue forecast.

MRC Global said it expects to benefit from long-term contracts with Royal Dutch Shell Plc and SandRidge Energy Inc in 2013 and 2014.

The Houston-based company, which went public in April, now expects 2012 revenue between $5.50 billion and $5.65 billion, up from its prior view of between $5.4 billion and $5.6 billion.

Analysts on average were expecting the company to earn $5.65 billion, according to Thomson Reuters I/B/E/S.

Net income rose to $31.3 million, or 32 cents per share, for the second quarter from $4.7 million, or 6 cents per share, a year earlier.

Excluding items, it earned 39 cents per share that missed analysts’ expectations of 41 cents per share.

Included in the quarterly net income was an $11.4 million pre-tax charge related to the purchase and early retirement of a portion of MRC’s senior secured notes.

Sales at the company, which is the distributor of pipe, valves and fittings and oilfield supplies, jumped about 22 percent to $1.43 billion, but came below analysts’ estimate of $1.44 billion.

In the April-June quarter, U.S. crude oil prices fell 9 percent and natural gas prices have fallen 46 percent from last year.

Shares of MRC, which has a market capitalization of $2.41 billion, closed at $23.89 after touching a life-high of $24.38 earlier in the session on the New York Stock Exchange on Tuesday. (Reporting by Ritika Rai in Bangalore)

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