Murphy USA reports positive Q3 results for Texas ethanol plant

By Erin Voegele | November 11, 2014

Murphy USA Inc. has released financial results for the third quarter, reporting $6 million of operating income from its 110 MMGy ethanol plant in Hereford, Texas. The company posted a loss of $900,000 for the facility during the same period of last year. Murphy USA attributed the increase to improved operations and favorable crush spread.

The company specified the ethanol plant achieved a nearly 2 percent increase in annual throughput rates and significantly higher yields following planned maintenance shutdowns in the first quarter and August.

For the first nine months of the year, the Hereford Ethanol plant generated $16.1 million in operating income, up from $100,000 during the same period of 2013. According to Murphy USA, the improved operations are the result of improved operations with 3.4 percent higher yields for the period and significantly higher crush spreads. The improved results for the first three quarters of the year are also attributed to planned maintenance work. 

During an investor call to discuss the quarterly results, Mindy West, chief financial officer of Murphy USA, spoke briefly about renewable identification numbers (RINs). She said that the company generated $25.2 million in operating income from the sale of RINs during the third quarter, down from $31.8 million during the same period of the previous year.

Overall, Murphy USA reported income from continuing operations of $62.7 million, or $1.36 per diluted share, for the quarter, on revenues of $4.68 billion. During the same period of last year, the company reported income from continuing operations of $36 million, or 77 cents per diluted share, on revenues of $4.69 billion.