Murphy Oil Earnings Up, Revenue Down in 1Q

Murphy Oil Corp. of El Dorado announced Wednesday that first-quarter net income climbed 24 percent to $360 million, compared with $290 million in the same quarter of 2012. About 42 percent of that income, however, came from discontinued operations. 

According to the earnings release, around $152 million of the company's first quarter income came from discontinued oil and gas production activities in the United Kingdom. Excluding those operations, the company's net income was $208 million, down from $281 million in 2012. Net income in the samequarter of 2011 was $290 million including discontinued operations.

The company said income from continuing operations declined due to higher expenses for exploration, administration, financing and income taxes.

Net earnings were $1.88 per diluted share, up from $1.49 per diluted share, in the same quarter of 2012.

Meanwhile, revenue was $6.64 billion, down from $6.95 billion in 2012.

"The process for completing the separation of our U.S. retail business in the second half of the year is going according to plan, largely due to the efforts of the retail management team led by Andrew Clyde," CEO Steven Cosse said in a news release (PDF). "The U.S. retail business operated well in the first quarter 2013, with better than normal fuel margins achieved during the winter season."

Cosse said Murphy's exploration operations exceeded expectations due to good performance in the Eagle Ford Shale.

"We will continue our active exploration drilling program with upcoming wells offshore Australia and Cameroon," he said. "The sale of the Mungo/Monan field in the U.K. should be completed in the second quarter."

The company will discuss its financial results with shareholders at noon on Thursday.