Murphy USA, the fuel and convenience store retail chain based in El Dorado, rode a $35 million after-tax settlement from the 2010 Deepwater Horizon oil spill to a $39.3 million profit in the first quarter of 2018.
The net income, which amounted to $1.16 per diluted share, was reported with financial results after the stock market close Tuesday, and compared with a net loss of $3 million in the same quarter last year. The profit, on total revenue of $3.24 billion, generally beat analysts expectations.
The increased profit came despite a 1 percent decrease in total gallons of fuel sold, including a 4 percent decline in same-store fuel sales, which the company attributed generally to higher oil prices. The company offset that effect with efficiency and product supply and wholesale results, known as PS&W. Dollars from merchandise sales grew 3 percent in the quarter, with improved margins for the company, which opened two new stores in the quarter.
The company also repurchased nearly 930,000 shares of common stock, spending $71.7 million, or an average price of $77.18 a share.
The results were solid considering a rocky start in the quarter, according to CEO Andrew Clyde, and they come on top of a $125 million fourth-quarter profit that was aided by corporate tax cuts enacted by Washington in December. The company’s total profit in 2017 was $245 million.
“Our fuel business showed resilience in the quarter as March fuel volumes were 99.3 percent on a same-store basis, despite a difficult start to the quarter,” Clyde said in a statement. “Our PS&W activities generated 3 cents per gallon for the quarter, which led to higher total fuel contribution, offsetting weaker retail margins due to rising prices. We reduced our fuel break-even requirement by a half-cent per gallon as we continued our commitment towards operating excellence.”
Clyde’s total compensation for 2017 was $5.8 million.
The Deepwater Horizon infusion was a $47 million pre-tax settlement from BP for damages caused by the massive Gulf of Mexico oil spill in 2010, when Murphy USA was still a division of Murphy Oil Corp. of El Dorado. The case had been in the courts, including appeals, for years.
Sign up for Daily E-news
