Revenue, profits dip in Q3 for Murphy USA

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by Talk Business & Politics staff ([email protected]) November 1, 2023 4:39 pm 445 views 

Murphy USA reported lower sales and profits as gas consumption was lower, though company officials noted last year saw record levels in its financial performance.

The El Dorado-based retail and convenience store chain posted third quarter net income Wednesday (Nov. 1) of $167.7 million, or $7.69 per diluted share, on revenue of $5.798 billion. One year ago, Murphy USA saw net income of $219.5 million, or $9.28 per diluted share, on revenue of $6.195 billion.

“We are very pleased with third quarter performance as we comp last year’s extraordinary earnings,” said President and CEO Andrew Clyde.

“On a two-year stack basis, Murphy USA demonstrated industry leading fuel volume and tobacco gains, while current year fuel margins highlight the sustainability of elevated industry margins in a less volatile setting. Momentum carried through to October especially at QuickChek where new promotions and initiatives have contributed to record food and beverage profits,” Clyde added.

Key highlights for the quarter ending Sept. 30, 2023 include:

  • Total retail gallons decreased 2.5% in Q3 2023 compared to Q3 2022, while volumes on a same store sales basis declined 4.7%;
  • Merchandise contribution dollars for Q3 2023 increased 3% to $211.8 million on average unit margins of 20.1%, compared to the prior-year quarter contribution dollars of $205.7 million on unit margins of 20%; and
  • During Q3 2023, the company repurchased approximately 201,100 common shares for $65.3 million at an average price of $325.00 per share.

Murphy USA has 1,700 locations in 27 states and serves more than two million customers a day.

The company recently published it’s 2022 Environmental, Social and Governance Summary Report, which can be accessed here.

On October 26, 2023, Murphy USA announced a quarterly cash dividend of $0.41 per share, or $1.64 per share on an annualized basis, reflecting a 5.1% increase from the prior quarter. The dividend is payable on December 1, 2023, to stockholders of record as of November 6, 2023.

Shares of Murphy USA (NYSE: MUSA) closed trading Wednesday at $365.36. The company’s stock has traded between $231.65 per share and $372.63 per share over the last 52 weeks.