Murphy USA Inc. on Wednesday reported a 3.5 percent decline in third-quarter profit.
The El Dorado-based retail fuel business and convenience store company had a net income of $60.5 million for the quarter, down from $62.6 million during the same period a year ago.
Murphy USA missed analysts estimates for the third quarter. The company reported earnings per share of $1.41, compared with $1.36 during the same quarter in 2014.
Benjamin Brownlow, an analyst with Raymond James, said he expected Murphy USA to report earnings per share of $1.53 for the third quarter.
Murphy USA reported revenue of $3.4 billion during the quarter ending Sept. 30, down from $4.6 billion in 2014.
Shares of Murphy USA dropped 46 cents to close at $61.84 on the New York Stock Exchange on Wednesday. The company released its financial results after markets closed. The shares have traded between $47.73 and $73.97 in the past 52 weeks.
Murphy USA's earnings announcement comes a day after the company said it will sell its ethanol plant in Hereford, Texas, to Green Plains Inc., a commodity processing company, for $93.8 million.
Murphy USA separated from Murphy Oil Corp. to become an independently, publicly-traded company in 2013.
The company said the total number of retail fuel gallons it sold during the third quarter rose 3.5 percent to 1.08 billion gallons.
As a result of a year-long oil price slump, retail gasoline prices have declined, leading to increased consumer demand for fuel.
During the third quarter, Murphy USA saw a 6 percent increase in income from continuing operations as a result of higher retail fuel margins and improved merchandise margins, the company said.
"Merchandise contribution continues to expand as our new store formats lead to higher sales and improved product mix while keeping our low cost operating model in place," said Murphy USA Chief Executive Officer Andrew Clyde in a prepared statement.
"This combination of margin expansion and cost control drives Murphy USA's competitive position in the marketplace," he said.
During the third quarter, Murphy USA opened 14 retail locations. And so far the company has opened an additional nine locations in November. Murphy USA has 1,300 total locations, including 1,081 Murphy USA sites and 219 Murphy Express sites.
The company will hold a conference call today at 10 a.m. to discuss its financial results. The number to call is 1 (877) 291-1367 and the conference number is 55785060.
Business on 11/05/2015