Edgen Group Inc. (NYSE: EDG), Baton Rouge, LA, a global distributor of specialized products including steel pipe, valves, plate and related components to the energy sector and industrial markets, reported pro forma sales for its first quarter were $505.8 million, up 55 percent over sales a year ago. Pro forma profit was $4 million, compared to a year-ago loss of $6 million.
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Edgen Group completed its initial public offering on May 2, 2012. Results are being presented on a pro forma basis to include include the combined results related to the historical business of Edgen Murray II LP, the predecessor company, and Bourland & Leverich, wich was acquired as part of the IPO and reorganization.
\”Our two operating segments, Edgen Murray and Bourland & Leverich, achieved significant year over year gains in revenue and earnings,\” said Dan O’Leary, president and CEO. \”Favorable business conditions in oil prices, rig count, and capital expenditure by our customers drove increased demand for the specialized products we distribute throughout global energy markets.\”
Compared to first quarter 2011, pro forma sales from the company’s Energy & Infrastructure segment, operating under the brand name Edgen Murray, increased 50 percent to $277.7 million. Strong organic growth was driven by increased activity levels, particularly in the Upstream and Midstream energy markets, as a result of worldwide oil and natural gas development.
Compared to first quarter 2011, pro forma sales from the company’s Oil Country Tubular Goods segment, operating under the brand name Bourland & Leverich, increased 61 percent, to $228.2 million. There was strong demand from onshore drilling customers with active drilling programs in oil and liquids-rich shale plays. These significant increases were driven by higher rig count, additional product volume needed for horizontal drilling, and more complex material requirements for difficult environments during the first quarter 2012 compared to the same period in 2011.
