Murphy USA logs 2Q profit of $55.6M
Murphy USA Inc., based in El Dorado, on Wednesday reported net income of $55.6 million, or $1.51 per diluted share, for the second quarter of 2017.
The retail fuel and convenience store company reported a $46.3 million profit, or $1.17 per share, for the same quarter a year ago.
Revenue was up 6 percent, to $3.2 billion this quarter, compared with the same quarter a year ago.
“Our strong results in the second quarter demonstrate the substantial earnings power of our low-cost, high-volume business model during periods of favorable retail fuel margins,” Andrew Clyde, Murphy’s president and chief executive officer, said in a statement. “Meanwhile, our merchandise profits are accelerating while per-store operating costs continue to decline, creating further upside operating leverage while reducing the company’s earnings volatility during periods of challenging fuel margins.”
The company said total retail gallons sold increased by 2.5 percent in the quarter. The profit margin per gallon was 18.1 cents, compared with 16.8 cents a year ago.
Sales of other merchandise increased by 5.5 percent, to $97.7 million, for a record margin of 16.1 percent, the company said.
The company opened five stores during the quarter and reopened on 12 sites where stores were razed and rebuilt. Construction has begun on 26 other locations, the company said.
A 2016 program authorizing up to $500 million in stock repurchases continued into the second quarter this year, with the buyback of 726,000 common shares, at an average of $67 each, for a total of $49 million. That leaves $110 million in stock repurchase authority.
Murphy USA shares fell 66 cents to close Wednesday at $76.19 before the earnings report was released.
Murphy USA will host a conference call today at 10 a.m. to discuss second quarter 2017 results. To access the call, dial 1 (877) 291-1367. The conference number is 45734993.