CHICAGO Edgen Group Inc.s profits surged in the third quarter as its energy and infrastructure group, as well as its oil country tubular goods (OCTG) segment, reported stronger results.
The Baton Rouge, La.-based distributor of steel pipe, valves, plate and other products for the energy and industrial markets reported net income of $10.4 million in the third quarter of 2012, a more than fourfold gain compared with earnings of $2.4 million in the third quarter of 2011, on sales that jumped 16.9 percent year over year to $534.6 million.
For the first nine months of the year, Edgen swung to a profit of $661,000, compared with a loss of nearly $4 million in the same period last year, as sales increased 28.2 percent to more than $1.5 billion in the same comparison.
Edgens energy and infrastructure segment, which operates as Edgen Murray Corp., saw higher sales volumes in the U.S. midstream energy market and increased offshore sales in the Asia/Pacific region, Edgen company chairman and chief executive officer Dan OLeary said in a statement released with earnings last week.
The companys OCTG segment, which operates as Bourland & Leverich Supply Co., gained market share and improved its sales products mix thanks largely to demand from drilling rigs operating in liquid-rich shale formations in the United States, OLeary said. These rigs tend to require specialized alloy products, he noted.