Despite Houston, TX-based industrial PVF products distributor MRC Global‘s steep sales decrease in the fourth quarter of 2023, the company’s revenue still grew for the third straight year.

The company’s 4Q 2023 sales were $768 million, 12% lower than 4Q 2022 and a 14% decline from the 3Q 2023. Adjusted EBITDA was $48 million, 6.3% of sales, according to a Feb. 13 earnings release. Meanwhile, full-year sales revenue was $3.4 billion, an increase of 1% compared to 2022. Adjusted EBITDA was $250 million, 7.3% of sales.

MRC said the sales decline in the fourth quarter was driven by:

• the gas utilities sector (down $66 million, or 21%, from 4Q 2022, as a result of non-recurring sales, deferred activity as well as certain customers destocking in the U.S.); and
• followed by the production and transmission infrastructure sector (down $45 million, or 15%, from 4Q 2022, due to non-recurring projects and lower customer activity).

The decrease were partially offset by an increase in the downstream, industrial and energy transition sector, which had an increase in customer projects and turnaround and maintenance activity for chemicals, mining and refining customers.

“In 2024, we expect revenue to be flat to modestly lower than 2023 levels,” said MRC Global President and CEO Rob Saltiel. “We expect a pick-up in our business activity in the second half of the year as an improving economy and lower interest rates support projects and oil and gas investments.”