Murphy USA Inc. posted a profit of $9.6 million in its first quarter of 2014, the company said Monday.
The El Dorado-based company reported about $4.1 billion in revenue for the period, which ended March 31.
Earnings per share for the quarter was 21 cents, slightly missing analyst estimates of 22 cents.
It was Murphy USA’s second full quarter after its spinoff from Murphy Oil Corp. last year. The company reported a net income of $22 million, or 47 cents per share, for the comparable period in 2013.
For the first quarter of2014, Murphy USA saw $8.8 million in income from continuing operations, compared with $20.6 million during the same period a year ago.
The company attributed the decrease to lower retail fuel margins that were partially offset by improved results from its Hereford ethanol plant and a higher merchandise gross margin for the period.
The average price of retail fuel for the first quarter was $3.23 per gallon, compared with $3.43 per gallon during the same period in 2013.
Murphy USA also reported a first-quarter, after-tax benefit of $10.9 million.
“During the first quarter of the year, we generated significant operating cash flows by running our fuel supply chain leaner,” said Andrew Clyde, president and chief executive officer, in a prepared statement. “We used a portion of this available cash to make an early payment of $15 million on our term loan at the end of the quarter and paid off the remaining $55 million subsequent to quarter end. Our retail fuel margin was lower than last year’s first quarter, which included our highest [first quarter] retail fuel margin in the last 10-year period due to a sharp decline in wholesale prices that did not recur this year.”
Clyde said Murphy USA saw a growth in nontobacco merchandise and improved margins in its tobacco categories despite lower sales volumes of cigarettes.
Tobacco sales have declined from 87 percent of total merchandise sales in 2009 to 80 percent in 2013, according to a recent research report by Damian Witkowski, a research analyst with Gabelli and Company.
Merchandise revenue for the quarter was $502.7 million.
Shares of Murphy USA gained 4.5 percent to close Monday at $44.98 on the New York Stock Exchange in almost twice the average volume. The company released its financial results after the markets closed.
Murphy USA opened 11 new retail locations during the quarter, and so far this month it has opened six other stores. The company has another 13 sites under construction and plans for an additional 49 locations this year. The company currently has 1,220 retail locations.
Murphy USA will hold a conference call at 10 a.m. today to discuss its financial results. The conference call number is (877) 359-9508 and the passcode is 26275660. The call can also be accessed live online at http://ir.corporate. murphyusa.com.
Business, Pages 23 on 05/06/2014