story from Talk Business, a TCW content partner
Murphy Oil Corp. saw a diminished fourth quarter due to its spin-off of its refinery and retail operations, but its full-year earnings topped $1 billion.
For the fiscal year, Murphy Oil’s 2013 net income cleared $1.12 billion, up from $970.9 million one year ago. In the fourth quarter, the El Dorado-based firm saw profits fall to $75.4 million, down from $158.7 million in 2012′s fourth quarter.
A variety of one-time charges swung earnings lower in the fourth quarter, including lower oil sales prices and higher expenses for the abandonment of operations in the Republic of Congo.
In August 2013, Murphy Oil spun off its refinery and retail operations into a new public company, Murphy USA.
Murphy Oil CEO Roger Jenkins noted that 2013 was a “pivotal year” for the company.
“We distributed to our shareholders all the stock of our former U.S. downstream subsidiary, Murphy USA Inc., which created a significant value enhancement for our shareholders. We also repurchased $500 million of company stock, removing almost eight million shares from the market,” he said.
“Additionally, we continue to progress the disposition of the U.K. downstream business, which is expected in 2014; this will complete the transition of Murphy Oil to an independent exploration and production company.”
Murphy Oil shares closed trading on Wednesday at $60.47. The company’s stock has traded between $50.92 and $66.20 per share during the past year.