Baton Rouge’s Edgen Group Inc. earned $10.4 million, or 21 cents per share, during the third quarter as sales jumped 17 percent to a record $534.6 million.
The company, which sells specialized products including steel pipe, valves and plate to energy and industrial customers, went public in May so per-share comparisons with the third quarter of 2011 were not available. However, Edgen’s net income for that quarter was $2.4 million.
During a Friday conference call with stock analysts and investors, Chairman and Chief Executive Officer Dan O’Leary said Edgen benefited from higher sales to domestic midstream firms, those that store, transport and process oil and natural gas, as well as exploration and production companies working in the waters offshore Asia.
Edgen also increased sales of pipe and tubing to drilling companies working primarily in U.S. shale formations, which require specialized alloy products.
O’Leary said Edgen sees continued opportunities in shale formations, such as the Eagle Ford in Texas.
“The Bakken Shale in North Dakota needs all kinds of infrastructure,” O’Leary said. “As you know, they’re still bringing oil out of there in rail cars.”
Edgen’s shares closed Friday at $7.48, up 27 cents.
Sales from Edgen’s energy and infrastructure segment, which operates under the brand name Edgen Murray, increased $50.7 million, or 21 percent, to $295.6 million for the third quarter.
Sales at the firm’s oil country tubular goods segment, which operates under the brand name Bourland & Leverich, increased $26.9 million, or 13 percent, to $239.2 million.
Edgen reported earnings after the markets closed Thursday. Edgen also repeated its earlier guidance for the full fiscal year of revenue in the range of $1.9 billion to $2.1 billion.