MRC Global Selected as Primary Provider of Pipe, Valves, and Fittings for ExxonMobil in North America
MRC Global (NYSE: MRC) announced on June 13, 2024, that it has been selected as the primary provider of pipe, valves, and fittings (PVF) products and services for ExxonMobil in North America. The agreement encompasses both upstream and downstream facilities, covering maintenance, repair, operations, and project work. MRC Global has been a long-term partner of ExxonMobil for over 35 years. Rob Saltiel, MRC Global's President & CEO, expressed enthusiasm about the continued partnership. John Rudisill, ExxonMobil's Head of Procurement Global Upstream, highlighted MRC Global's product and service breadth, technical expertise, and extensive geographic coverage as key reasons for the selection.
- MRC Global secures a significant contract with ExxonMobil, a major industry player.
- The agreement includes comprehensive services for both upstream and downstream facilities.
- MRC Global has a longstanding relationship with ExxonMobil, spanning over 35 years.
- The partnership is expected to streamline and standardize ExxonMobil's PVF supply chain.
- Potential for increased revenue for MRC Global due to the expanded scope of services.
- Dependence on a single major client like ExxonMobil could pose risks if the partnership changes or ends.
- No specific financial terms or expected revenue impacts were disclosed in the announcement.
- Potential increased operational costs to meet the expanded service requirements for ExxonMobil.
Insights
MRC Global's selection as the primary PVF provider for ExxonMobil is a significant development in terms of revenue and market positioning. This agreement encompasses ExxonMobil's upstream and downstream facilities across North America, indicating a substantial increase in MRC's operational workload and potential revenue streams. This could lead to higher sales volumes and improved economies of scale, which may positively impact MRC's profit margins.
From a revenue perspective, securing a partner like ExxonMobil can boost MRC Global's financial outlook. ExxonMobil's vast operations mean continuous demand for PVF products, ensuring steady revenue for MRC. Additionally, such partnerships often strengthen a company’s market reputation and may attract other clients in the industry.
Investors should also consider the operational efficiency that comes with this agreement. By streamlining and standardizing the PVF supply chain, MRC can reduce costs and improve service delivery. However, it's important to monitor how MRC manages the increased demand and whether it has the capacity to meet ExxonMobil's requirements without compromising quality or delivery timelines.
This agreement is a strategic win for MRC Global, enhancing its competitive edge in the PVF market. The partnership with ExxonMobil, a leader in the oil and gas industry, highlights MRC's strong market position and ability to meet high standards. This will likely bolster MRC's market share and influence in North America.
From a market dynamics perspective, the agreement reflects a broader trend of consolidation and strategic partnerships aimed at optimizing supply chains in the energy sector. MRC's extensive product range and geographic coverage made it an ideal partner for ExxonMobil, supporting the notion that companies with comprehensive service offerings and wide reach are better positioned to secure lucrative contracts.
Moreover, this partnership can enhance MRC's visibility and credibility, potentially leading to new opportunities and collaborations. However, investors should be mindful of any potential risks, such as dependency on a single major client or fluctuations in the oil and gas market that could impact demand.
HOUSTON, June 13, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC) announced today that its subsidiary, MRC Global (US) Inc., has signed an agreement to be the primary provider of pipe, valves and fitting (PVF) products and services to ExxonMobil in North America. The agreement includes all of ExxonMobil’s North America upstream and downstream facilities for maintenance, repair and operations as well as project work.
“We are very pleased that ExxonMobil has entrusted us with this important part of their business,” commented Rob Saltiel, MRC Global President & CEO. “MRC Global is proud to have supported ExxonMobil for more than 35 years, and we look forward to supporting their growth for years to come with a full range of PVF products and related services.”
“MRC Global is the best strategic supplier for ExxonMobil in the PVF product category because of their product and service breadth, technical expertise, and geographic coverage,” said John Rudisill, Head of Procurement Global Upstream for ExxonMobil. “This agreement allows us to streamline and standardize our PVF supply chain and leverage our scale across our growing North America business.”
About MRC Global Inc.
Headquartered in Houston, Texas, MRC Global (NYSE: MRC) is the leading global distributor of pipe, valves, fittings (PVF) and other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worldwide network of 214 locations including valve and engineering centers. The company’s unmatched quality assurance program offers over 300,000 SKUs from over 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers. Find out more at www.mrcglobal.com.
Contact:
| Monica Broughton VP, Investor Relations & Treasury |
| MRC Global Inc. |
| Monica.Broughton@mrcglobal.com |
| 832-308-2847 |
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