HOUSTON - MRC Global Inc. (NYSE: NYSE:MRC), a leading distributor of pipe, valves, and fittings, has announced a record-breaking financial performance for the fiscal year 2023, with significant operating cash flow and adjusted gross margins. The company reported generating $181 million in operating cash, surpassing its expectations, and is targeting approximately $200 million for 2024.
The company attributes its financial success to the robust demand for its products and services, improvements in cost structure, and working capital efficiencies. MRC Global highlighted its strong balance sheet, noting record low net debt, which provides flexibility for capital allocation strategies aimed at growth and shareholder returns.
MRC Global's Board of Directors, with diverse expertise in industrial distribution, energy sectors, corporate governance, finance, and international experience, has been actively refreshed with five new directors since 2021. The latest addition, David Hager, former Executive Chairman of Devon Energy Corporation (NYSE:DVN), replaced retiring director Barbara Duganier.
The company also addressed its engagement with Engine Capital LP, stating that after several discussions and candidate assessments, the Board concluded that Engine's nominees did not offer additional skills needed by the Board. MRC Global emphasized its commitment to actions that drive long-term shareholder value.
While the date for the 2024 Annual Meeting has not been announced, shareholders have been advised that no action is required at this time. Recommendations for the election of directors will be presented in the definitive proxy statement to be filed with the Securities and Exchange Commission.
J.P. Morgan Securities LLC and Akin Gump Strauss Hauer & Feld LLP serve as financial and legal advisors, respectively, to MRC Global.
This news article is based on a press release statement from MRC Global Inc.
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