Murphy USA on Friday reported a profit of $89.3 million for the first quarter of 2020, or $2.92 per share, exceeding analysts' expectations for an earnings period marred by the coronavirus pandemic.
Based in El Dorado, the chain of retail gasoline and convenience stores reported a profit of $5.3 million, or 16 cents per share, for the first quarter of 2019.
The results were better than the $2.80 per share expected in average estimates of three analysts surveyed by Zacks Investment Research.
Murphy USA posted revenue of $3.18 billion, also better than analysts' expectations of $3 billion and 2% higher than the $3.11 billion for the same period last year.
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"Despite exceptional first quarter performance, our business faces unprecedented risks and unknown challenges stemming from [covid-19] as the resiliency of our economy, our public health system, and our citizens are put to the test," Andrew Clyde, the company's president and chief executive officer, said in a statement that accompanied the earnings report.
Clyde thanked employees, "who have risen to the occasion and stood on the front-line during this crisis, continuing to provide clean, safe, and friendly service to our customers, despite the difficult environment."
Murphy USA shares have dropped 12% since the beginning of the year but remain up 22% for the 12-month period.
Clyde said that, while uncertainty abounds for the short term, a strong balance sheet means the company is "well-positioned to continue serving our customers, our employees and our shareholders in this environment."
Murphy USA said total retail gallons sold were up 1.2% over the same quarter last year and sales from merchandise rose 10.3%, to $107 million, compared with the first quarter of 2019.
"As the [covid-19] pandemic impacts all sectors of the global economy, beginning in mid-March we have seen a reduction in customer count that has impacted our business," Clyde said.
Clyde said the company will withdraw its 2020 retail fuel volume guidance because of uncertainty in the oil markets.
"The commodity environment for crude oil and refined gasoline and distillates remains volatile and while the current retail fuel margin is significantly higher than our 5 year historical averages, we can not forecast when that margin environment will decline," Clyde wrote. The company's guidance on growth, fuel break-even, corporate costs and capital allocation remains unchanged, he said.
The company repurchased 1.4 million common shares for $140.6 million during the quarter, at a per-share average of $103.17.
Murphy USA opened two new retail locations in the quarter, bringing the store count to 1,491. That consists of 1,161 Murphy USA sites and 330 Murphy Express sites. Fifteen stores are under construction, with five being new stores and 10 being raze-and-rebuild projects.
Business on 04/18/2020