HOUSTON - MRC Global Inc. (NYSE: NYSE:MRC), a leading global distributor of pipe, valves, and fittings, has named Deborah G. Adams as its new Board Chair, effective immediately. Adams takes over from Robert L. Wood, who has retired from the board for personal reasons.
Deborah Adams, who has been a member of MRC Global's board since 2017 and chaired the board's Compensation & Human Capital Committee since 2022, brings a wealth of experience to her new role. Her background includes significant leadership positions at Phillips 66 (NYSE:PSX), where she served as senior vice president of health, safety, environmental, projects, and procurement, and as the division president of transportation. Adams' tenure at Phillips 66 and ConocoPhillips (NYSE:COP), as well as her service on various joint venture boards and her ongoing involvement with Oklahoma State University, where she is an inductee into the College of Engineering, Architecture and Technology Hall of Fame, positions her as a knowledgeable leader for MRC Global.
Rob Saltiel, President & CEO of MRC Global, expressed confidence in Adams' ability to contribute to the company's strategy and market positioning. Saltiel also acknowledged the contributions of the outgoing Chairman, Bob Wood, highlighting Wood's role in improving the company's capital structure through strategic financial maneuvers.
MRC Global, headquartered in Houston, Texas, serves a diverse range of markets, including gas utilities, downstream, industrial, and energy transition, as well as production and transmission infrastructure sectors. The company boasts over a century of experience in providing supply chain solutions, technical expertise, and a comprehensive digital platform to its customers. MRC Global operates a vast network of over 200 locations worldwide and prides itself on a quality assurance program that simplifies the supply chain for its approximately 10,000 customers.
The announcement of Adams' appointment is based on a press release statement from MRC Global.
In other recent news, MRC Global Inc. has announced significant financial and personnel developments. The company has entered an agreement to repurchase all of its outstanding 6.50% Series A Convertible Perpetual Preferred Stock from Mario Investments, LLC, a move contingent on a successful term loan financing of approximately $361 million. The company anticipates this repurchase will be accretive to earnings per share from 2025 onwards, under current capital market conditions.
In addition, MRC Global has provided preliminary financial results for the third quarter of 2024, showing revenue of approximately $797 million, adjusted EBITDA of around $48 million, and cash flow from operations of approximately $95 million. For the second quarter of 2024, the company reported a 3% increase in revenue, reaching $832 million, and generated $63 million in operating cash flow, primarily due to expansion in gas utilities and the Process Tube Fitting sectors.
The company also announced the forthcoming retirement of Rance Long, their Senior Vice President of Sales & Marketing, scheduled for May 2025. Mr. Long will transition to a new role as Senior Vice President – Marketing Strategy, maintaining his current compensation terms until retirement.
Finally, despite project delays in the Downstream, Industrial, Energy Transition sector, MRC Global remains hopeful for improvement in 2025. The company's international business observed a 15% year-over-year revenue growth, further solidifying its position as a primary strategic supplier to ExxonMobil (NYSE:XOM) in North America. These are recent developments that investors may want to watch.
InvestingPro Insights
As MRC Global transitions to new leadership under Deborah G. Adams, investors may find value in examining the company's financial health and market position. According to InvestingPro data, MRC Global has a market capitalization of $1.07 billion, reflecting its significant presence in the pipe, valves, and fittings distribution sector.
The company's financial metrics reveal a mixed picture. MRC Global's P/E ratio stands at 13.08, suggesting a relatively modest valuation compared to earnings. This is complemented by an InvestingPro Tip indicating that the stock's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors.
Despite facing some headwinds with a revenue decline of 6.66% over the last twelve months, MRC Global maintains a gross profit margin of 20.4%, demonstrating its ability to manage costs in a challenging environment. This resilience is further supported by another InvestingPro Tip, which notes that the company operates with a moderate level of debt, potentially providing financial flexibility as it navigates market changes under new leadership.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into MRC Global's financial position and future prospects. These additional tips could be particularly valuable as the company enters a new phase with its board leadership transition.
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