Murphy USA Credits Three Key Trends for a Record Second Quarter
EL DORADO, Ark. — Murphy USA Inc. notched a record second quarter of 2020, with President and CEO Andrew Clyde crediting three key trends for driving the company's business operations.
Speaking during the retailer's second-quarter earnings call on July 21, Clyde explained that the three trends — the new equilibrium between fuel margins and demand, merchandise category performance, and Murphy USA's business model and cost structure — have been persistent throughout the COVID-19 pandemic, and are also grounded in fundamentals Murphy USA was seeing well before 2020.
"COVID-19 simply amplified the financial impact of these existing underlying drivers," Clyde stated.
Murphy USA reported Q2 2020 net income of $168.9 million, compared to $32.7 million in Q2 2019. Merchandise contribution dollars grew by 12.2 percent compared to the prior-year quarter to $118.4 million, on average unit margins of 15.4 percent.
On the forecourt, fuel contribution for the second quarter was 38.3 cents per gallon, compared to 14.7 cents per gallon in Q2 2019. Total retail gallons did decrease 25.7 percent in the quarter compared to the same quarter last year, while volumes on a same-store sales basis decreased 27.4 percent.
During the three-month period, Murphy USA opened three new stores and welcomed customers back to eight raze-and-rebuild stores. In addition, the company divested all nine of its Minnesota stores to a private company for an immaterial gain.
Murphy USA has 11 new sites and six raze-and-rebuild stores currently under construction.
El Dorado-based Murphy USA's network totals approximately 1,500 stores, consisting of Murphy USA sites and Murphy Express sites.
Look for additional Convenience Store News articles on each of the key trends detailed by Murphy USA President and CEO Andrew Clyde.