Murphy USA registers profit of $62.7M in third quarter

Murphy USA Inc. turned a profit of $62.7 million in its 2014 third quarter, the El Dorado-based company said Wednesday.

Murphy USA had earnings per share of $1.36 for the period that ended Sept. 30, beating an analyst estimate of $1.02.

The gasoline retailer reported revenue of $4.7 billion for the quarter. It was the company's fourth quarterly report since separating from Murphy Oil Corp. last year.

Murphy USA reported a net income of $41.7 million, or 89 cents per share, for the comparable period in 2013.

The company said its financial results improved because of higher retail margins and volumes along with higher merchandise margins. Murphy USA's ethanol plant in Hereford, Texas, also saw improved results.

Benjamin Brownlow, an analyst with Raymond James and Associates, said he projected earnings per share of $1.41, citing expectations of a solid quarter from the company based on fuel margins and volumes.

"The declining oil price environment is generally favorable for fuel margins," he said.

Brownlow said the company also ran an extended promotion with Wal-Mart that discounted fuel.

"Solid execution across the board in a favorable fuel margin environment paved the way for exceptional earnings in the third quarter," Andrew Clyde, Murphy USA president and chief executive officer, said in a statement. "As we celebrated our first anniversary as a standalone company, we continued to deliver on key growth objectives in terms of fuel and merchandising gross margin growth as well as new site development."

Murphy USA opened 16 retail locations in the third quarter and an additional six locations so far this month. The company has 1,245 retail locations.

Shares of Murphy USA fell 39 cents to close Wednesday at $57.49 in average trading on the New York Stock Exchange.

The company, which released its financial results after the market closed, hit a new 52-week high of $58.89 in intraday trading.

Murphy USA will hold a conference call at 10 a.m. today to discuss its financial results.

The call can be accessed by calling (877) 291-1367 and using call number 15148148. The call will also be available online at http://ir.corporate.murphyusa.com.

Business on 11/06/2014

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