Energy In-depth: Murphy USA Posts Higher Profits On Lower Revenues
by February 6, 2015 6:47 am 111 views
Editor’s note: Each Friday, Talk Business & Politics provides “Energy In-depth,” a round-up of energy and regulatory news in our email newsletter, which you can sign up to receive daily for free here.
MURPHY USA POSTS HIGHER PROFITS ON LOWER REVENUES
Murphy USA saw higher profits on lower revenue in its final quarter and for the full year of 2014. The El Dorado-based refinery and retail gas operation reported net income of $98.3 million on revenue of $3.61 billion in its recent fourth quarter. One year ago, fourth quarter results included profits of $64.2 million on revenue of $4.19 billion.
For the full year 2014, Murphy USA reported net income of $243.9 million on sales of $17.2 billion. One year ago, Murphy USA posted profits of $235 million on revenue of $18.1 billion.
“The fourth quarter topped off an outstanding first year as a standalone company,” said President and CEO Andrew Clyde. “We set and achieved ambitious goals for the year around site growth, merchandise and fuel margin expansion, and cost leadership. We look forward to continuing our performance and execution track record in 2015 and returning additional value to our shareholders.”
LAWMAKERS RE-INTRODUCE ETHANOL MANDATE REFORM BILL
Reps. Bob Goodlatte, R-Va., Peter Welch, D-Vt., Steve Womack, R-Ark., and Jim Costa, D-Calif., introduced a bill this week that would reform the Renewable Fuel Standard, ending the mandate for blending ethanol into gasoline.
American Petroleum Institute Downstream and Industry Operations Group Director Bob Greco, whose organization supports the measure, said the bill would address “the core problem of the ethanol blend wall that could put consumers in harm’s way, hurt the economy and disrupt the nation’s fuel supply.”
Oil industry leaders say they are hitting a “blend wall” where they no longer can mix in enough ethanol to meet the renewable fuel mandate’s volume targets without exceeding a 10% threshold acceptable for use in all cars and trucks. Read more here.
$2 GASOLINE LIKELY TO END
Experts say that $2 per gallon gasoline prices are likely over and pump prices should continue to rise through the spring. However, they say there is no reason to panic.
“This is not revisiting 2011 to 2014 – this is the normal increase and we’re probably a little low,” says Tom Kloza, global head of energy analysis for the Oil Price Information Service. “That’s still an awful good price.”
Read this article from U.S. News & World Report for more.