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Parkland appoints Marcel Teunissen as CFO

0Parkland Corporation is welcoming Marcel Teunissen as chief financial officer effective December 1, 2020.

Teunissen joins Parkland from Royal Dutch Shell, where he was EVP, finance, integrated gas and new energies, responsible for the financial management of Shell’s global portfolio of LNG assets and its emerging new energy business. With more than 23 years of experience, he has worked globally across the entire energy value chain, with an emphasis on refining, retail and related infrastructure.

“I am delighted to welcome Marcel to the Parkland Team and look forward to his contributions as we embark upon our next phase of growth,” Bob Espey, president and CEO Parkland, said in a release. “His leadership experience, financial and business acumen, and broad global experiences make him an ideal fit to help drive our growth strategy and deliver market-leading results.”

Teunissen brings an extensive background in corporate finance, treasury, financial planning and analysis, tax, strategic planning and commodity & financial risk management. He has also worked in many of the markets across Parkland’s diverse geographies, including Canada and the Caribbean.

Darren Smart, who has served as interim CFO since December 2019, will return to his role of SVP, strategy & corporate development, which will be expanded to include developing and leading Parkland’s low-carbon and renewables strategy.


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Parkland ramps up growth the latest U.S. acquisition

Screen Shot 2020-11-16 at 1.10.47 PMParkland Corporation has announced it will acquire the assets of Richfield, Utah-based Sevier Valley Oil Company (SVO).

Based in Richfield, Utah, SVO is a well-established retail and commercial fuel business with annual fuel and petroleum product volume of approximately 350 million litres. SVO’s primary operations are in Southwestern Utah, along with a presence in Northern Utah and Colorado. The acquisition of SVO adds seven retail locations and over 20 retail dealers in addition to robust diesel and lubricant distribution capabilities.

“We continue to expand our US footprint and execute on our growth strategy,” says Doug Haugh, president of Parkland USA. “This acquisition meaningfully expands our retail presence in rapidly growing Southern Utah and presents a fantastic opportunity to leverage our North American On the Run convenience store brand, enhance our customer proposition and drive incremental value.”

“The acquisition strongly complements our existing Rockies Regional Operating Center and positions us for further organic and acquisition growth in neighbouring Nevada and Arizona,” added Haugh. “We are delighted to welcome Garrett Ekker and the SVO team to Parkland and look forward to the continued growth of our USA business.”

This acquisition is consistent in value with Parkland’s previous U.S. transactions. Funding for the deal will come from existing credit facility capacity. The transaction is expected to close in the fourth quarter of 2020. 


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Parkland Fuel third quarter profit surges to $76 million despite weaker sales

Parkland Corp. says its net earnings surged to $76 million during the third quarter despite a 24% decrease in revenues.

The Calgary-based fuelling company says the earnings attributable to Parkland equated to 51 cents per basic share, up from 16 cents per share or $24 million a year earlier.

Revenues for the three months ended Sept. 30 were $3.5 billion, down from $4.6 billion in the third quarter of 2019.

Parkland says its fuel and petroleum product volume is continuing to recover from the impact of COVID-19 and was within five per cent of its third quarter 2019 volumes.

In Canada, steady volume recovery, strong fuel margins and convenience store sales drove a 23 per cent increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from the prior year to $128 million.

Fuel volume decreased seven per cent to 2.3 billion litres due to the impact of COVID-19. Convenience store same-store sales were 10.7%, with strength of its rebranded On the Run sites.


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Parkland Fuel third quarter profit surges to $76 million despite weaker sales

Parkland Corp. says its net earnings surged to $76 million during the third quarter despite a 24 per cent decrease in revenues.

The Calgary-based fuelling company says the earnings attributable to Parkland equated to 51 cents per basic share, up from 16 cents per share or $24 million a year earlier.

Revenues for the three months ended Sept. 30 were $3.5 billion, down from $4.6 billion in the third quarter of 2019.

Parkland says its fuel and petroleum product volume is continuing to recover from the impact of COVID-19 and was within 5% of its third quarter 2019 volumes.

In Canada, steady volume recovery, strong fuel margins and convenience store sales drove a 23% increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from the prior year to $128 million.

Fuel volume decreased seven per cent to 2.3 billion litres due to the impact of COVID-19. Convenience store same-store sales were 10.7%, with strength of its rebranded On the Run sites.


Ian White, Parkland

Parkland leaders discuss On the Run deal

UnknownCalgary-based Parkland Corporation will acquire the license for the exclusive use of the On the Run trademark in the majority of U.S. states. The deal includes an option to purchase the On the Run U.S. trademark together with the license owner’s On the Run franchise business. The acquisition positions Parkland to expand On the Run across the United States to create a unified, North American convenience store brand.

Parkland is a convenience/gas leader with more than 1,850 fueling sites in Canada featuring brands such as, Ultramar, Esso, Fas Gas Plus, Chevron, Pioneer and Race Trac. The company is also a major presence in the U.S and Caribbean markets. In the U.S., Parkland owns c-stores, supplies independently owned gas stations, delivers bulk fuels and supplies lubricants. U.S. brands include, Rhinehart Oil, Hart’s and Farstad Oil, as well as Superpumper, Kellerstrass Oil Company, KB Express, Mort Distributing, ConoMart Super Stores, and Tropic Oil. In the Caribbean, Parkland offers brands such as Esso, SOL and Shell at 496 locations in 23 countries.

On the Run is an international convenience retail brand developed by ExxonMobile in the U.S. Parkland Corporation took on the Canadian rights to use the brand in 2016 after Imperial Oil divested its retail network. Before Parkland’s licensing announcement, the company operated more than 300 On the Run sites at gas stations operating under various brands.  

Ian White, Parkland

Ian White, Parkland

According to Ian White, SVP, strategic marketing & innovation at Parkland, On the Run is an established retail brand that can be quickly and efficiently scaled by leveraging the capabilities already established in the Canadian market. He suggests that the time is right to create a unified North American retail and convenience store brand. He points to five strategic rationals for the decision.

  1. Create a unified North American convenience brand by expanding On the Run across the U.S.
  2. Capture efficiencies through common brand collateral, product assortments, private label product ranges and operational continuity.
  3. Opportunity to rebrand existing U.S. convenience stores and efficiently incorporate the On the Run convenience brand to newly developed sites.
  4. Greater optionality and a strong convenience store foundation for future U.S. merger and acquisition activities.
  5. Support the organic growth of the dealer business by providing an enhanced, bundled offer that combines a leading convenience store brand with multiple forecourt fuel brands.

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Doug Haugh, president, Parkland USA, tells OCTANE  that the initiative builds on successes in brand image, private-label goods and product assortment already established in the Canadian market. “Our U.S. customers will enjoy an enhanced interior and exterior rebranding elements,” he says, noting larger and brighter canopies and a variety of new product offerings coming to locations soon.


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Parkland Fuel to expand On the Run convenience store brand across the United States

parklandontheruncanadainteriorphotoParkland Fuel Corp. plans to expand its Canadian On the Run convenience store brand across the United States after acquiring the licence in most states.

The Calgary-based company says creating a unified North American brand will “harness the advantages of our scale. ”

Ian White, Parkland senior vice-president strategic marketing and innovation, says the change comes as it proceeds with its growth strategy, which includes future acquisitions.

Parkland says it has acquired the perpetual licence for the exclusive use of the On the Run trademark and the option to purchase the trademark altogether.

parklandontheruncanadaexterior-photoParkland acquired the On the Run brand and franchise network in Canada from Imperial Oil in 2016 and has 300 of them in 1,849 gas stations operating under various brands including Ultramar and Pioneer.

Parkland currently has 58 convenience stores in the U.S. operating under the Harts, ConoMart Super Stores, and Superpumper, KB Express banners.

“The On the Run retail brand provides a solid platform for our continued U.S. growth,” added Doug Haugh, president, Parkland USA.

“Building on our existing On the Run brand image, product assortments and private label goods in Canada, we look forward to meeting the convenience needs of our U.S. customers under the On the Run banner.”


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Parkland posts lower Q2 net income of $32 million as fuel sales fall by 14%

UnknownService station operator Parkland Corp. is reporting higher-than-expected second quarter earnings despite pandemic-related hits to its sales volumes.

The Calgary-based company says net income in the three months ended June 30 was $32 million on revenue of $2.7 billion, down from $105 million on revenue of $4.85 billion in the same period a year ago.

Its net earnings per diluted share were 21 cents, compared with 70 cents last year. Analysts had expected a loss of 38 cents, according to financial data firm Refinitiv.

Parkland, which purchased the Caribbean fuel retailer Sol early last year, says volumes in its international segment are trending about 20% lower in July compared with last year because some markets have temporarily increased restrictions due to rising COVID-19 cases.

It says overall fuel and petroleum product volumes decreased by 14% in the second quarter compared with the year-earlier period but strong fuel margins and convenience store traffic, along with cost cutting, drove an over 30% increase in adjusted earnings in Canada.

Parkland, which sells fuel through more than 2,600 service stations in Canada, the United States and Caribbean, cut its budget to $275 million in March, down from its earlier guidance of $575 million. It says it will restore $50 million to account for stronger cash flow than expected and higher maintenance spending.

“We delivered solid margins, won new business and successfully managed our cash flow by reducing costs and controlling capital expenditures,” said CEO Bob Espey in a statement.

“Our financial and operating performance through the second quarter demonstrates the flexibility and resilience of our diversified business model. While we remain nimble in light of ongoing COVID-19 uncertainty, we are confident in our ability to advance our growth agenda.”


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Parkland teams up with Amazon Web Services to ramp up digital transformation

UnknownParkland Corporation is collaborating with Amazon Web Services to use analytics in order to improve its logistics and enable frictionless commerce.

“We are excited to be teaming up with AWS to advance our strategic priorities and support our ambitious organic growth targets,” Ian White, SVP strategic marketing and Innovation at Parkland, said in a release. “AWS is a renowned global technology leader who is laser-focused on customer experience and innovation.”

The goal, adds White, is to uncover valuable insights into “customers’ needs and preferences to provide enhanced services, products and personalized offers.”

The company says it has been building its internal capabilities to leverage digital technology trends for some time and has identified several technologies and customer-centric opportunities that support organic growth. These include:

  • Loyalty program data optimization (including the Canadian JOURNIE rewards loyalty program) and personalized customer offers;
  • Real-time price optimization using enhanced data feeds and machine learning;
  • Progressing a vision for the convenience store of the future.

Next steps include “monitoring fuel inventories in real-time and optimizing routing and distribution, harnessing digital to help scale the business without adding significant cost and complexity, and improving the speed and efficiency of M&A integration.”

White says that by embracing digital to focus on the customer experience, Parland aims to drive organic revenue growth and margin expansion. “Digital services are changing constantly and teaming up with AWS helps us channel those developments to elevate our customer focus and enhance our core competencies of retailing, customer loyalty, pricing, supply and distribution.”


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Parkland Fuel sees $79 million loss in first quarter on higher revenues

The Calgary-based company says that equalled a loss of 53 cents per diluted share, compared with a profit of 52 cents per share or $77 million a year earlier.

Revenues for the three months ended March 31 increased 3.4% to $4.36 billion from $4.2 billion in the prior year.

Fuel and petroleum product volume increased 12% to six billion litres.

Analysts expected Parkland to lose one cent per share on $4.37 billion of revenues, according to financial markets data firm Refinitiv.

The company says it removed more than $300 million of capital expenditures from its plans this year.


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Parkland nears completion of Burnaby refinery turnaround

Parkland Fuel Corporation is nearing completion of the required work for the 2020 Burnaby refinery turnaround and has begun the startup sequence for the facility.

In statement, the company explained: “We expect an approximate two-week process to reach full operational capability when accounting for additional coronavirus preventative safety measures. COVID-19 has required Parkland to change processes and procedures in response to guidance from Provincial health authorities. This has led to a decrease in the number of staff on site and lower productivity.

“I would like to thank the Parkland team and contractors for all their hard work during this maintenance event,” said Ryan Krogmeier, SVP, supply, trading, refining and HSE. “We are proud of the outstanding safety results to date and the effort exhibited by everyone involved.”