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Retail Sales, Margins Boost Murphy USA’s 1Q Profit

2 min read

Murphy USA Inc. of El Dorado on Tuesday reported a strong start to its new fiscal year, with first-quarter net income of $22.9 million, up more than 138 percent from $9.6 million in the same quarter last year.

The publicly traded gas station operator (NYSE: MUSA) reported net income from continuing operations of $22.9 million, or 50 cents per diluted share, compared to $8.8 million, or 19 cents per diluted share, during the same period last year.

The company also said revenue was $3 billion compared to $4.16 billion last year.

The company noted in its first-quarter report that the increased earnings were tied to “higher retail fuel margins and volumes, higher RIN [renewable identification number] sales proceeds and lower product supply and wholesale contribution.”

“The first quarter of 2015 got off to a strong start as retail fuel volume and margin momentum carried over from Q4 of last year,” president and CEO Andrew Clyde said in a statement. “Merchandise sales and margins also remain robust while low gas prices have led consumers to upgrade their product choices. While fuel prices have increased in recent months, we continue to benefit from our exposure to elevated RIN prices and our low cost business model positions us to take advantage of future price volatility.”

The average retail fuel prices in the first quarter of the year were $2.10 per gallon compared to $3.23 per gallon in 2014.

Other highlights from the report included:

Merchandise sales, not including tobacco products, grew 6.7 percent on an average per store month basis and associated margin dollars increased 3.2 percent on average per store month.

Retail fuel volumes increased 5.8 percent overall for the quarter and 1.0 percent on average per store month.

Murphy USA added five stores during the quarter with another three sites opened since the end of the quarter and 16 others under construction.

The company will host a conference call today to discuss the earnings report.

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