Murphy USA 2Q Income Up 4 Percent

by Michelle Corbet  on Thursday, Aug. 7, 2014 11:35 am  

Andrew Clyde

Murphy USA Inc. of El Dorado on Wednesday announced second-quarter income from continuing operations $73.2 million, or $1.57 per diluted share, up 4 percent from $70.3 million, or $1.50 per diluted share, in the same quarter last year.

Earnings came on revenue of $4.76 billion, down about 2 percent from $4.84 billion last year due to discontinued operations.

Analysts with Thomas Reuters estimated earnings per share of 90 cents. Murphy USA (NYSE: MUSA) beat estimates by 67 cents.   

"The second quarter of the year saw us translate the execution of our strategy into financial results for our shareholders," President and CEO Andrew Clyde said in a news release

Net income for the second quarter was $73.2 million, compared to net income of $77 million for the comparable quarter in 2013, which included $7.3 million in income from discontinued operations associated with Murphy Oil Corp. of El Dorado.

Publicly traded Murphy Oil (NYSE: MUR) spun off its gas station business to form Murphy USA Inc. last year. 

Clyde attributed improved results in continuing operations to higher merchandise margins, particularly in non-tobacco products, improved results from the Hereford, Texas, ethanol plant and higher product supply and wholesale gross margins despite lower retail fuel prices.  

"Merchandise gross margin dollars per site grew 2.3 percent as the results from our successful beverage promotions and rollout of new e-cigarette and vapor products more than offset the decline in cigarettes," Clyde said. "Despite a flat fuel price environment that dampened retail fuel margins, total fuel margin dollars grew as product supply and wholesale contributed $48 million in margin." 

Based on continued strong earnings performance and balance sheet, Clyde said, Murphy USA also completed its first ever share repurchase program of $50 million during the second quarter. 



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