MRC Can Pull It Back
In the current circumstance, MRC Global (MRC) finds it essential to preserve liquidity and reduce costs to battle the ongoing energy demand crisis. The selling of higher-margin valve products can stabilize the cash flow as the valve products are typically countercyclical. However, the company’s revenues from the upstream end market will shrink in 2020. The downstream end market, too, is heading towards another dull quarter as the crack spread moves unfavorably. Plus, the line pipe pricing and margin can also deflate in the near term.
The company expects