Murphy USA Inc. Reports Positive Second Quarter 2017 Results

Murphy USA Inc. Reports Positive Second Quarter 2017 Results

Andrew Clyde, President and CEO says, "The strong results in the second quarter demonstrate the substantial earnings power of low cost, high volume business model during periods of favorable retail fuel margins." 


Key Highlights:

  • Net income was $55.6 million, or $1.51 per diluted share in Q2 2017 compared to net income of $46.3 million, or $1.17 per diluted share, in Q2 2016
  • Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W") results including RINS) for Q2 2017 was 18.1 cpg compared to 16.8 cpg in Q2 2016
  • Total retail gallons grew 2.5% to 1.06 billion gallons for the network during Q2 2017 while volumes on an average per store month ("APSM") basis declined 2.0% versus prior year quarter and retail fuel margins averaged 16.6 cpg versus 10.8 cpg
  • Merchandise contribution dollars grew 5.5% during the quarter to $97.7 million, achieving a record unit margin of 16.1%
  • Five new stores opened during the quarter, 12 raze-and-rebuild sites reopened, with new and raze-and-rebuild construction in progress at 26 locations as of today and seven sites opened since quarter end
  • Common shares repurchased during the second quarter were approximately 726,000 for $49 million at an average price of $67 per share under the February 2016 program authorizing up to $500 million in repurchases, leaving $110 million of authority remaining.  YTD 2017 common share repurchases total 994,000 shares for $66 million at an average price of $67 per share.

"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. Midstream conditions improved during the second quarter as the RIN market returned to an equilibrium status after regulatory clarity emerged, although PS&W contribution remains pressured by an oversupplied market and depressed rack prices." Clyde concluded, "With our debt issuance, 29% earnings per share growth, and further execution on our improvement initiatives during the quarter, we continue to optimize and improve operating and financial leverage for the benefit of shareholders."

Murphy USA opened five fuel service stations in Q2 2017 (not including twelve raze and rebuilds), bringing the quarter end store count to 1,411, consisting of 1,154 Murphy USA sites and 257 Murphy Express sites.  A total of 24 stores are currently under construction along with 2 kiosks undergoing a raze and rebuild which will return to operation as 1,200 sq. foot stores before year end.  Seven stores have opened since the end of second quarter 2017. PWKD04082017

Last modified onThursday, 03 August 2017 17:49
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