Murphy USA reports record quarterly net income for ethanol plant

By Erin Voegele | August 13, 2014

Murphy USA Inc. recently announced financial results for the second quarter, reporting that income from its Hereford, Texas, ethanol plant set a quarterly record. The company reported $8.8 million of net income from ethanol production at the facility, up from $3.7 million during the same quarter of the prior year.

The improvement is attributed to improved crush spread and improved efficiency following the planed first quarter maintenance shutdown. During a call to discuss the quarterly results, Andrew Clyde, president and CEO of Murphy USA noted the yield improvement efforts at the facility are continuing to pay off, as the plant generated record quarterly net income. In addition, he said the improvements are boosting the plant’s value as the company builds a sustained performance track record for its eventual sale.

During the call, Mindy West, chief financial officer of Murphy USA, noted that the sale of renewable identification numbers (RINs) during the quarter generated income of $23.3 million, down from $29.7 million during the same quarter of last year. Clyde added that the company sold approximately 52 million RINs during the quarter at an average price of 45 cents.

Overall, the company reported income from continuing operations of $73.2 million, or $1.57 per diluted share, on revenues of $4.76 billion. During the second quarter of 2013, income from continuing operations was $70.3 million and $1.50 per diluted share on revenues of $4.84 billion.

Murphy USA opened nine retail locations during the second quarter, along with five additional sites opened through early August. The company current has approximately 1,228 total retail locations in operation, with 20 new sites under construction. Total retail fuel volumes increased 1.1 percent during the second quarter, with 993.1 million gallons sold, up from 982.4 million gallons during the same period 2013.