Murphy USA Q1 profits nearly triple

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by Roby Brock ([email protected]) May 3, 2022 7:34 pm 1,429 views 

Murphy USA Inc. reported first quarter net income of $152.4 million, nearly three times higher than a year ago when profits topped $55.3 million.

On Tuesday (May 3), the El Dorado based fuel and convenience store chain posted quarterly revenue of $5.12 billion versus $3.54 billion in last year’s comparable quarter ending March 31. Diluted earnings per share were $6.08 in the first quarter of 2022 compared to $2.01 per share a year ago.

“Our Q1 results continue to highlight the benefits of Murphy USA’s advantaged and resilient low-cost business model, affordable everyday low prices, and incredibly engaged associates who go the extra mile for their customers,” said Murphy USA President and CEO Andrew Clyde.

“Through competitive pricing and promotions that resonate with our value-driven customers, we are profitably gaining share in established and emerging categories, as existing customer spending remains strong and new customers seek greater value in the current environment. This enduring advantage is key to the virtuous cycle through which all Murphy USA stakeholders win.”

Murphy USA has integrated a major acquisition, QuickChek, into its operations – one of the reasons for the gains in revenue and profitability. Other financial highlights of the quarter include:

  • Total fuel contribution for Q1 2022 was 34.0 cpg, compared to 22.5 cpg in Q1 2021;
  • Total retail gallons increased 7.8% to 1.1 billion gallons in Q1 2022 compared to Q1 2021, while volumes on a same store sales basis increased 3.8%;
  • Merchandise contribution dollars for Q1 2022 increased 18.4% to $175.7 million on average unit margins of 19.7%, compared to the prior-year quarter contribution dollars of $148.4 million on unit margins of 17.8%; and
  • Food and beverage contribution margin increased to 14.6% of total merchandise contribution dollars in Q1 2022 compared to 11.5% in the prior year period.

During the quarter, Murphy USA opened six new Murphy Express stores and one QuickChek store, which increased the quarter-end store count to 1,686. There are 17 new Murphy Express stores, two new QuickChek stores, and 17 raze-and-rebuild Murphy USA stores currently under construction.

Shares of Murphy USA (NYSE: MUSA) closed trading Tuesday at $234.78. The company’s stock has traded between a low of $126.56 per share and a high of $249.11 per share over the last 52 weeks.