Murphy USA sees Q1 profits drop
El Dorado-based Murphy USA on Wednesday (April 28) posted first quarter profits of $55.3 million on revenue of $3.537 billion as it moved forward with the integration of its Quick Chek Corp. acquisition.
One year ago, Murphy USA posted net income of $89.3 million on revenue of $3.185 billion. Higher interest expense and a drop-off in income from operations accounted for much of the profit decline.
Net income was $2.01 per diluted share during the quarter compared to $2.92 per diluted share a year ago.
“The new year started off with tremendous momentum as first quarter results underscore the strength of our core business alongside the realities of our industry post-COVID 19,” said President and CEO Andrew Clyde.
“Fuel margins showed remarkable resilience as product prices rose approximately 55 cents during the quarter and continued to demonstrate the higher breakeven economics of independent retailers. As we lap the initial impact of COVID-19, we are maintaining market share in critical categories like fuel and tobacco while generating higher growth from the core non-tobacco business.”
Murphy USA announced in December 2020 a $645 million acquisition of QuickChek, a New Jersey-based convenience store chain that broadened Murphy’s footprint in the Northeast. The move increased Murphy USA’s store count by 156.
“During the quarter we also kicked off our 100-day integration plan with QuickChek and continue to be impressed by both the operational expertise of the QuickChek team and the full opportunity set for synergy capture. We remain fully confident in our ability to achieve previously stated goals and deliver future earnings growth in line with our long-term value creation potential,” Clyde added.
Shares of Murphy USA (NYSE: MUSA) closed Wednesday at $142.47. The company’s stock has traded between a low of $101.06 per share and a high of $159.00 per share over the last 52 weeks.