MRC Faces A Weak Trajectory
In FY2020, the upstream customers continued to tighten their E&P budget as the crude oil price gravitated to a lower level. It appears likely that MRC Global’s (MRC) revenues from the upstream end market will struggle in 2020, while the midstream and the downstream end markets are likely to stay steady. However, the margin in the downstream sector does not look promising in the short-term.
Given the lack of top-line growth, the company has focused on expanding the gross margin. Increased sales of higher-margin valve products and higher