Murphy USA profits slide in second quarter compared to year ago

Murphy USA reported second quarter net income of $132.8 million, a decline from $183.3 million one year ago. Second quarter revenue for the El Dorado-based gas and convenience store operator was also down year-over-year from $6.766 billion a year ago to $5.585 billion in this year’s second quarter.

Diluted earnings per share were $6.02 in the second quarter of 2023 versus $7.53 a year ago.

“Murphy USA results show continued momentum in the second quarter, maintaining fuel market share while delivering incremental in-store growth against exceptional 2022 performance,” said Murphy USA President and CEO Andrew Clyde.

“Our strong year-to-date performance in an environment with markedly less volatility reaffirms our belief that the structural change in fuel margins is not only sustainable, but also closer to the high-end of our expectations. We remain confident in our ability to track favorably against our full-year guidance and are well-positioned to capitalize on the opportunities ahead,” he added.

Other key highlights in the quarter included:

• Total retail gallons increased 2.3% in Q2 2023 compared to Q2 2022;
• Volumes on a same store sales basis declined 1.8%;
• Merchandise contribution dollars for Q2 2023 increased 5.1% to $206.8 million on average unit margins of 19.7%, compared to the prior-year quarter contribution dollars of $196.7 million on unit margins of 19.8%; and
• During the quarter, the company repurchased approximately 334,000 common shares for $95.1 million at an average price of $284.65 per share.

Shares of Murphy USA (NYSE: MUSA) closed trading Wednesday at $299.20. The company’s stock has ranged from a low of $231.65 to a high of $323.40 over the past 52 weeks.