Parkland Tracking Well Toward 2018 Adjusted EBITDA Guidance of $775 Million ± 5%.
Parkland Fuel Corporation, Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products and a leading convenience store operator, announced the financial and operating results for the three and nine months ended September 30, 2018. All financial figures are expressed in Canadian dollars.
“The strength of our acquisitions, realized synergies, and business performance continue to drive Parkland’s track record of earnings growth and value creation for shareholders,” said Bob Espey, President and Chief Executive Officer. “Our supply division delivered another strong quarter driven by improved supply economics and strong refining margins. These strong quarter and year-to-date results have us tracking well toward our 2018 FY guidance of $775 million ± 5%.”
Selected highlights from Parkland’s Q3 financial and operating results include:
- Increased sales and operating revenue by 48% to $3.8 billion.
- Delivered 4.2 billion litres (1.1 billion gallons) of fuel and petroleum product representing 18% growth compared to the same period in 2017.
- Grew Supply’s Adjusted EBITDA to $121 million and $362 million for the three and nine months ended September 30, 2018, compared to $25 million and $66 million in the respective periods of 2017. This exceptional growth was attributable to contributions from Parkland acquiring all outstanding shares of Chevron Canada R & M ULC, and strong refining margins, profitable supply sourcing initiatives, improved supply economics and optimization in the base business.
- Increased supply and wholesale volumes by 32%, mainly attributable to the aviation fuel business acquired as part of the Chevron Acquisition, as well as increases in refined product sales.
In addition to these and other impressive highlights, on October 9, 2018 Parkland entered into an agreement to acquire 75% of the issued and outstanding shares in the capital of Sol Investments Limited and its subsidiaries. Further, on August 27, 2018, Parkland completed the acquisition of Rhinehart Oil Co., Inc. and its affiliates. Rhinehart markets and distributes fuels, lubricants and specialty products in Utah, Colorado, Wyoming and New Mexico.
Parkland Fuel Corporation (“Parkland”) is Canada’s largest and one of North America’s fastest growing independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland serves customers through three channels: Retail, Commercial and Wholesale. The company optimizes its fuel supply across these three channels by operating the Burnaby Refinery and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings, including under the On the Run / Marché Express banners, in the communities it serves. Parkland is listed on the Toronto Stock Exchange and trades under the symbol PKI. Click for more.
While many of the stories JobbersWorld reports focus on lubricant distribution, the news about Parkland Fuel Corporation exemplifies that not all large lubricant distributors operate businesses that are led by lubes. Instead, some (large in the case of Parkland) have diversified product portfolios where fuels comprise the lion’s share of sales, and lubricants and other petroleum products account for an important part of the balance. In addition, some own and operate c-stores, refining, and other assets.
In an effort to provide our readers with insights on such businesses and how they could impact the future of lubricant distribution, JobbersWorld reached out to the leadership of Parkland Fuels. What we found was quite interesting and we will report on it in next week’s issue of JobbersWorld.