Q3 profits double for Murphy USA

by Roby Brock ([email protected]) 1,039 views 

On the strength of strong revenue growth, larger purchasing trips and improved same-store sales, Murphy USA reported third quarter profits that were more than double from a year ago.

The El Dorado-based gas and convenience store operator reported third quarter revenue of $6.195 billion and net income of $219.5 million. One year ago, Murphy USA posted quarterly revenue of $4.6 billion and net income of $104 million.

Diluted earnings per share for the quarter were $9.28 versus $3.98 one year ago.

“Third quarter results showcased the resiliency and attractiveness of our everyday low-price model, which translated into strong fuel volume growth and same-store merchandise growth,” said Murphy USA President and CEO Andrew Clyde.

Net income in the first three quarters of 2022 was $555.2 million, well ahead of the $288.1 million in the same period of 2021. Revenue in the first three quarters of 2022 was $18.709 billion, also much better than the $12.593 billion in the same period of 2021.

“Murphy USA continues to provide value to our customers and they are rewarding us with their loyalty, resulting in more frequent trips and larger baskets. Performance in categories attached to fuel trips has maintained strength, as October per-store volumes are running about 10% higher than the prior year. We remain committed to our mission of providing affordable gas, convenience products, and food and beverage offers to customers across our growing network, and expect our advantaged business model to continue generating strong results into 2023,” Clyde added.

Other financial highlights for the quarter included:

  • Volumes on a same store sales basis increased 9%;
  • Total retail gallons increased 13.2% to 1.2 billion gallons in Q3 2022 compared to 1.1 billion gallons in Q3 2021;
  • Merchandise contribution dollars for Q3 2022 increased 9.8% to $205.7 million on average unit margins of 20.0%, compared to the prior-year quarter contribution dollars of $187.3 million on unit margins of 19.6%.

During the quarter, Murphy USA opened seven new express stores, bringing its total store count to 1,700.

Shares of Murphy USA (NYSE: MUSA) closed trading Wednesday (Oct. 26) at $288.93. The company’s stock has traded between a low of $160.74 and a high of $303.09 over the past 52 weeks.