Gasoline retailer nets big quarter

Profit is $22.9M at Murphy USA

An increase in fuel margins and volumes helped Murphy USA Inc. more than double its first quarter net income, the El Dorado-based fuel retailer said Monday.

Murphy USA turned a profit of $22.9 million, or 50 cents per share, during the quarter, up from $9.6 million, or 21 cents per share, during the same period in 2014.

The company reported $2.96 billion in revenue for the period that ended March 31; that's down from $4.16 billion during the same quarter a year ago.

Murphy USA said its 2015 financial results were helped by a jump in retail fuel margins and volumes, and participation in renewable fuel program.

"The first quarter of 2015 got off to a strong start as retail fuel volume and margin momentum carried over from [the fourth quarter] of last year," said Andrew Clyde, president and chief executive officer, in a statement.

In 2014, the company had an after-tax benefit of $10.9 million and a $800,000 gain from the sale of one of its plants.

Murphy USA shares fell a penny to close Monday at $66.25 on the New York Stock Exchange. The company's earnings, which were released after the market closed, were in line with analyst expectations of 50 cents per share.

Murphy USA said retail fuel sales rose 5.8 percent to 962.7 million gallons during the quarter compared to the previous year.

The company's fuel margins for the period rose 3.2 cents per gallon to 10 cents per gallon in the first quarter. In the 2014 first quarter, margins were 6.8 cents per gallon.

Murphy USA opened five retail locations in the first quarter and three since then. The company now has 1,271 total locations with 1,062 Murphy USA sites and 209 Murphy Express sites.

"Merchandise sales and margins also remain robust while low gas prices have led consumers to upgrade their product choices," Clyde said in the statement.

Gasoline prices at the pump have jumped 22 cents in the past month to a nationwide average of $2.62 a gallon on Monday. In Arkansas, the average price of regular grade gasoline has risen 18 cents to $2.38 a gallon, according to AAA Daily Fuel Gauge Report.

The current surge in gasoline prices is the result of rising oil prices. Crude, which has seen its price cut in half since 2014, climbed 25 percent in April, as energy drillers pulled drilling rigs and cut investment to curb U.S. oil production.

There are signs that U.S. oil production may be peaking with evidence of a drawdown of the nation's stockpile, said Phil Flynn, an energy analyst with Price Futures Group.

But on Monday, oil prices fell on concerns that the global supply glut may grow after Iraq said that in April it exported the most crude in more than 30 years. Iraq shipped 92.3 million barrels of crude in April, a spokesman for Iraq's Oil Ministry told Bloomberg News.

On Monday, West Texas Intermediate crude fell 22 cents to $58.93 on the New York Mercantile Exchange. Brent crude slid 1 cent to $66.45 a barrel on the ICE Futures Europe exchange in London. And gasoline futures for June delivery dropped 1.14 cents to $2.03 a gallon.

Murphy USA will hold a conference call today at 10 a.m. to discuss its first-quarter financial results. The call can be accessed at (877) 291-1367 using passcode 19244028 or online at http://ir.corporate.murphyusa.com.

Business on 05/05/2015

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