Renowned energy equipment and services company MRC Global Inc.’s MRC first-quarter 2016 adjusted net loss of 10 cents was narrower than the Zacks Consensus Estimate of a loss of 13 cents.However, it must be noted that the company had posted adjusted net income of 28 cents last year. Weak customer demand due to unfavorable conditions in the oil and gas market, along with a strong U.S. dollar, partially offset the benefits from the company’s strategic growth initiatives.RevenuesMRC Global’s revenues decreased 39.4% year over year to $783 million. The year-over-year decline was primarily attributable to reduced customers’ spending across all the three segments of the company due to weak natural gas and oil prices.However, the top line surpassed the Zacks Consensus Estimate of $754 million.Performance of the SegmentsMRC Global’s first-quarter sales in the U.S. totaled $606 million, down 38% year over year. The decline was primarily attributable to weak customer spending in all three sectors of the company.International sales aggregated $113 million, down 44% year over year. Lower project-related activities and deferral in the repair, maintenance and operational expenditure in the U.K., Norway, Singapore and Australia led to the decline in revenues. Moreover, a strong U.S. dollar was largely responsible for the year-over-year fall in revenues.Revenues from Canada plunged 46% year over year to $64 million due to a strong U.S. dollar.Revenues by SectorFor the first quarter, upstream sales were $231 million, down 58% year over year. Weak customer activity resulted in the year-over-year deterioration.Midstream sales totaled $278 million in the first quarter, down 27% year over year. The company’s midstream sales decreased due to soft demand from transmission customers.The company’s first-quarter downstream sales fell 25% year over year to $274 million. The year-over-year decline was primarily attributable to poor project activity.Margins & CostsAdjusted gross profit margin was 18.7%, marginally up from 18.6% in the year-ago quarter. Selling, general and administrative expenses were $137 million, down from $159 million a year ago.Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) totaled $19 million, down from $87 million in the prior-year quarter.Balance Sheet & Cash FlowMRC Global exited the first quarter with cash balance of $121 million, up from $69 million as of Dec 31, 2015. At the quarter end, the company’s long-term debt, net of current portion, decreased to $510 million from $511 million at year-end 2015.In the first quarter, MRC Global generated $58 million of cash from operating activities compared with $115 million generated in the prior-year quarter. Total capital expenditure was $10 million compared with $4 million at the end of first-quarter 2015.OutlookDespite the unfavorable market conditions, MRC Global expects to improve its business on the back of superior customer relationships, working capital optimization, operational expense management and balance sheet strengthening.Stocks to ConsiderMRC Global presently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Mueller Water Products, Inc. MWA, Valmont Industries, Inc. VMI and Barrick Gold Corporation ABX. All the three companies presently hold a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BARRICK GOLD CP (ABX): Free Stock Analysis Report VALMONT INDS (VMI): Free Stock Analysis Report MUELLER WATER (MWA): Free Stock Analysis Report MRC GLOBAL INC (MRC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research