Fuel and convenience retailer Murphy USA Inc. of El Dorado reported flat revenue and decreased profits in reporting its second-quarter performance Wednesday, a result of diminished returns on gasoline sales and higher operating costs.
Net income was $32.7 million, or $1.01 per share for the quarter that ended June 30, compared to $51.8 million in the first quarter of 2018. Rising merchandise sales only partially offset lower product prices and inventory adjustments, a company news release said. The income total was off 36 percent from last year’s second-quarter report filed with the federal Securities & Exchange Commission.
The company also said it had repurchased 203,000 shares of common stock at an average price of $83.22 per share, a total of $16.8 million.
The company said net income and diluted earnings per share suffered “due to a lower all-in fuel contribution combined with higher operating expenses,” partially offset by a higher merchandise contribution.
“In the second quarter we invested in multiple areas of the business to acquire customers and drive traffic to our stores, resulting in share gains in our most important categories,” company president and CEO Andrew Clyde said in a statement. “We grew same-store fuel volumes for the fourth consecutive quarter and delivered exceptional merchandise performance, especially in tobacco, where investments we have made in the category increased our market share versus broad-based declines across the industry.”
Clyde said the company’s Murphy Drive Rewards program had attracted nine million participants, and said “we are excited to announce board approval of an up to $400 million share repurchase program to be executed through July 2021.”
Sign up for Daily E-news
