LITTLE ROCK — Murphy Oil Corp. reported a third-quarter profit of $226.7 million — a 44.2 percent drop from the same quarter a year ago, the El Dorado-based company Wednesday.
The decrease in net income came with a slight drop in revenue. For the quarter that ended Sept. 30, Murphy reported revenue of $7.1 billion. During the third quarter in 2011, revenue was $7.2 billion.
Murphy’s earnings were mostly in line with analyst predictions, said Stacey Hudson, analyst for Raymond James & Associates.
“It was a little light, but still looked good,” she said. “Production looked good.”
Raymond James predicted Murphy’s earnings per share to be about $1.12. The company reported $1.16 per share for the quarter, down from $2.09 per share a year ago on a profit of $406 million.
Murphy attributed the drop in earnings to low natural-gas prices and weaker U.S. retail marketing margins.
The company released its earnings report after stock markets closed.
Murphy shares rose 19 cents Wednesday to close at $60. Shares traded between $59.72 and $61.98 during the day.
Murphy reported a $221.1 million profit from its exploration and production operations, down from a profit of $273.4 million a year ago.
Exploration and production operation expenses have jumped 9.9 percent to $94 million so far this year because of dry holes in the Kurdistan region of Iraq and in Malaysia.
Murphy reported a thirdquarter profit of $263.9 million from its U.S. and U.K. refining and marketing business, an improvement on a $4.2 million loss in the second-quarter.
Three weeks ago Murphy announced it would separate its retail and marketing business from its exploration and production operations in 2013.
When the separation is final, Murphy Oil USA Inc., a subsidiary of Murphy, will become an independent and separately traded company. Murphy Oil Corp. will become solely an exploration company.
“Our company has recently made a number of key moves that are expected to enhance shareholder value when completed,” Steven Cosse, president and chief executive officer, said in a prepared statement.
Murphy also said it plans to sell its exploration and production operations in the United Kingdom by the end of the year but did not name a buyer.
The company, which sold its two U.S. refineries last year, has struggled to sell its Milford Haven refinery in Wales.
The public can listen to Murphy’s conference call today at noon by going to the Investor Relations section of Murphy Oil’s website at murphyoilcorp.com/ir or by calling (888) 515-2880 and entering call code 1084159. Replays of the call will be available at the same Web address, and a recording of the call will be available through Monday at (888) 203-1112 using the same call code.
Business, Pages 25 on 11/01/2012