MRC Global Inc. reported sales of $783 million for the first quarter of 2016, which were 39 percent lower than the first quarter of 2015 and 19 percent lower than the fourth quarter of 2015. As compared to last year, reduced customer activity across all segments and sectors drove the decline as a result of lower oil and natural gas prices.

U.S. sales in the first quarter of 2016 were $606 million, down $366 million or 38 percent from the same quarter in 2015. The decrease reflects a $226 million, or 63 percent decrease in the upstream sector, including an $85 million impact from the sale of our U.S. oil country tubular goods (OCTG) product line, a $94 million, or 26 percent decrease in the midstream sector and $46 million, or 18 percent decrease in the downstream sector.

Canadian sales in the first quarter of 2016 were $64 million, down $55 million or 46 percent from the same quarter in 2015. The decrease in Canadian sales reflects a $44 million decrease in the upstream business. Approximately $7 million of the total decline was a result of the weaker Canadian dollar relative to the U.S. dollar.

International sales in the first quarter of 2016 were $113 million, down $88 million or 44 percent from the same period in 2015. The decrease was due to the combined impact of lower project activity and deferral of maintenance, repairs and operations expenditures particularly in Norway, the U.K., Australia and Singapore. The impact of the decline in the foreign currencies in areas where we operate account for $8 million of the total decline.