NEW YORK MRC Global Inc.
is moving away from the oil country tubular goods (OCTG)
sector, seeing little upside for the market.
"Im not a very big
optimist about the future pricing environment in OCTG. You have
relatively flat rig demand, you have a lot of imports still
coming to the market, and you have domestic supply coming
onstream," chairman, president and chief executive officer
Andrew Lane said during the companys fourth-quarter
earnings conference call.
As a result, the company began
"strategically de-emphasizing" OCTG in 2012, Lane said in
comments accompanying MRCs financial report.
MRCthe largest global
distributor of pipe, valves and fittings and related products
and services to the energy and industrial sectors, according to
its websiteis more bullish on the line pipe market, in
which even low natural gas prices are not crimping demand.
"Low natural gas and natural gas
liquids prices are not dampening pipeline infrastructure
spending in the North American market, as the industry works to
catch up with historical quantities of production needed to get
to end markets," Lane said during the conference call.
The Houston-based company also
is confident that increased switching from coal-based power to
gas and eventual exports of liquefied natural gas "bode well
for this part of the market," Lane said.
MRC posted a fourth-quarter net
loss of $6.44 million in contrast to net income of $3.56
million in the same period a year earlier on sales of nearly
$1.31 billion, virtually flat with a year earlier. Full-year
net income jumped to $117.96 million from $28.98 million in
2011 on a 15.3-percent increase in sales to more than $5.57