Murphy Oil (MUR) Shares Down After Reporting Loss For Q4

Murphy Oil Corp. (NYSE:MUR), formerly known as Murphy Corp. was founded in 1950 in Louisiana. However, its original history dates back to 1907 when the company’s founder Charles Murphy, Sr. bought tracks of land for future oil discoveries. The company evolved over the years to become a leading energy player in the global oil and gas market.

Like rival companies, Murphy also struggled to generate revenue in 2020 due to the negative impact of the Covid-19 virus on its global operations. MUR stock was trading around $26 at the start of 2020. Its share price fell sharply to a low of $4.50 in March as the pandemic hurt the global travel industry that eventually caused the oil prices to drop.

MUR stock recovered some of its lost value afterward. Though, the stock once again dropped in September after Saudi Arabia decreased crude prices for October shipments, sending oil prices down. Murphy shares continuously traded lower in late October after oil prices fell again over renewed mobility restrictions due to the resurgence of the Covid-19 cases. Overall, the stock lost more than 50 percent of its value in 2020.

Murphy on Thursday announced its financial results for the fourth quarter and full year. The company reported a loss of $1.11 per share for the three months ended December 31, almost double as compared to the year-ago quarter. Revenue for the quarter declined 48 percent on a year-over-year basis to $330.2 million.

Speaking on the results, CEO Roger Jenkins said, “We quickly responded to the major pullback in commodity prices by drastically reducing our capital budget and cost structure while adjusting our operational plans and continued supporting capital allocation to our major offshore projects. Our efforts resulted in strong liquidity, cash on hand, and paying a dividend to our shareholders.”

The company’s net loss for the full year widened to $7.48 per share for 2020, as compared to earnings of $6.98 per share in 2019. Revenue for the full year came in at $2 billion, down 30.5 percent from 2019.

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Murphy shares fell 7.64 percent in the previous trading session. The stock is once again marginally down in the mid-day trading Friday.