CCentral-Main-logo-EN-trans

Convenience Central
Join our community
extra content
Unknown

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.


Unknown

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.”


Unknown-2

Parkland acquires ConoMart Super Stores in the U.S.

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has entered into an asset agreement to acquire seven retail sites located in and around Billings, Montana. All seven retail sites feature a strong convenience store offering and a Conoco-branded forecourt.

Unknown-2

“This acquisition expands our Montana business and scales our existing Northern Tier Regional Operating Centre,” Doug Haugh, president of Parkland USA, said in a release. “ConoMart Super Stores is a well-run, customer-focused business and we look forward to welcoming the team to Parkland.”

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator across Canada, the United States, the Caribbean region and the Americas.


Unknown

Parkland expands foodservice offering with Triple O’s restaurant deal

UnknownParkland Fuel Corporation is entering into a multi-year agreement to strengthen its range of freshly prepared and quality meal options by expanding its long-standing relationship with Triple O’s restaurants.

This exclusive agreement builds on the success of Parkland’s existing network of On The Run and Town Pantry convenience stores that already feature Triple O’s in British Columbia – Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. This paves the way for more restaurants in British Columbia, as well as Triple O’s entry into Alberta and Ontario.
Screen Shot 2020-02-25 at 10.04.23 AMTriple O’s Restaurants is a division of White Spot Hospitality – a Canadian restaurant chain since 1928 – that operates more than 60 quick service restaurants throughout British Columbia, Alberta and Asia. The quick service burger restaurant currently operates at select Parkland Town Pantrys in British Columbia.
“We look forward to working with Triple O’s to expand their presence in B.C. and launch their high-quality food brand and award-winning menu into Alberta and Ontario,” Ian White, Parkland’s senior vice-president of strategic marketing and innovation, said in a release. “As part of our organic growth strategy, our goal is to include a high-quality food offering in every new and retrofitted On the Run convenience store.”
The combination of Parkland’s network of fuel brands with Triple O’s freshly prepared breakfast, lunch, dinner and snack options complement Parkland’s existing food offering and is a natural extension to its On the Run convenience store brand.
“This is an exciting day for the Triple O’s family,” said Warren Erhart, president of White Spot Hospitality. “We have a longstanding and successful partnership with Parkland in British Columbia and look forward to expanding on this success in new markets. With consumers’ evolving needs for convenience and premium quality food, it is with great pride and passion that we are now able to share our delicious and craveable taste of Triple O’s with our signature burgers, fresh-cut Kennebec fries and hand-scooped milkshakes, to so many more Canadians.”

Unknown

Parkland acquires U.S.-based Kellerstrass Oil

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, it has entered into an agreement to acquire the entities and assets of Kellerstrass Oil Company.

UnknownBased in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming.

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a convenience store operator servicing customers across Canada, the United States, the Caribbean region and the Americas through its retail, commercial and wholesale divisions.

In a release Parkland stated: “In addition to highly efficient trucking, routing and distribution practices, Kellerstrass brings a strategic 17-car rail spur and storage assets, commercial card locks and an 84-location dealer business. Kellerstrass will complement and strengthen Parkland’s existing Rockies Regional Operating Centre.”

The acquisition is part of Parkland’s efforts to expand its U.S. footprint, says Doug Haugh, president of Parkland USA. “We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits. We are delighted to enter the Idaho market and expand our presence in Wyoming and look forward to welcoming the Kellerstrass team to Parkland.”

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2020.


Unknown

Parkland completes Mort Distributing acquisition

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has completed the previously announced acquisition of the assets of Mort Distributing, Inc.

Mort is a marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers across Montana. Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator.


Unknown

Parkland acquires U.S.-based Mort Distributing

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, is entering into an agreement to acquire the assets of Montana-based Mort Distributing, Inc. and its affiliates.

Founded in 1958, Mort is a family-owned marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers. Mort’s operations are focused in Montana, which will enable Parkland to “further capture distribution efficiencies and enhance customer service across its Northern Tier Regional Operating Centre (ROC).”

“This acquisition is consistent with our U.S. growth strategy and will complement and strengthen our existing Northern Tier ROC,” Doug Haugh, president of Parkland USA said in a statement. “We look forward to welcoming the Mort team into Parkland and to continuing to deliver high-quality products and excellent service to Mort’s broad customer base.”

The acquisition will primarily be funded from cash from operations. The transaction is expected to close by the end of 2019 and is subject to customary closing conditions.


Screen Shot 2019-11-13 at 9.53.33 AM

Parkland announces interim CFO

Screen Shot 2019-11-13 at 9.53.33 AMDarren Smart is taking on the role of interim chief financial officer, in addition to his current role as Parkland’s senior vice-president, strategy and corporate development.

Mike McMillan, who has served as the company’s CFO since 2015 is leaving the company, but will support Smart’s transition until December 31, 2019.

“We are pleased that Darren has assumed the Interim CFO role in addition to his existing accountabilities,” Bob Espey, Parkland’s president and CEO, said in a release. “During the past five-years, Darren has played a significant commercial and financial leadership role in the company. I am confident he will do an excellent job and provide strong continuity as we search for a permanent chief financial officer.”

Smart joined Parkland in 2014 and leads the company’s enterprise wide strategy and corporate development activity.  He has been a member of the company’s senior leadership team since 2015. Prior to joining Parkland, he was a portfolio manager at Teachers’ Private Capital, the private equity arm of the Ontario Teachers’ Pension Plan, where he was responsible for sourcing, evaluating and managing energy-related investments. Smart has a Master of Business Administration from Harvard Business School and a Bachelor of Business Administration with distinction from Wilfrid Laurier University.

Screen Shot 2019-11-13 at 9.54.21 AMIn May, Parkland announced that McMillan has decided to move back to Ontario to spend more time with his family. The company immediately begin a search to replace McMillan, who agreed to support us until a successor has been named and an appropriate transition period is completed.

“Mike has made exceptional contributions during his ten-years with Parkland,” adds Espey. “On behalf of the Parkland team, I thank him for his commitment to our growth and success and offer my best wishes.”


Unknown

Parkland Fuel plans refinery maintenance

The refinery that is the sole local supplier of motor fuel in the B.C. Lower Mainland is being scheduled for an eight-week maintenance shutdown early next year but owner Parkland Fuel Corp. says it is taking measures to keep prices at the pump in check.

The 55,000-barrel-per-day Burnaby refinery is putting fuel in storage to be drawn upon during the outage but that won’t be enough to last for the entire duration, said Dirk Lever, vice-president for refining, on a conference call to discuss Parkland’s third-quarter results last week.

“We have a fair amount of planning to do dealing with other refineries in order to source supply as we’re down,” he said.

“More material to pump prices on the West Coast are unplanned outages, rather than planned outages. So the fact this is a planned outage and has been orchestrated ahead of time, it should not have a material impact at the pump.”

Gasoline and diesel prices have been a hot topic in British Columbia.

A public inquiry concluded in August that there’s an unexplained difference of 13 cents per litre between Metro Vancouver and Seattle that is costing drivers on the Canadian side of the border nearly $500 million a year.

But it also found no evidence of collusion among the companies – including Parkland – that supply and market fuel.

Premier John Horgan called the public inquiry last May as gasoline prices reached a record-breaking $1.70 per litre in the Vancouver region.

Parkland’s down time shouldn’t result in higher prices because there has been sufficient preparation time, said market watcher Michael Ervin, senior vice-president with consulting firm Kent Group, on Tuesday.

He said prices are generally higher in the Vancouver area because of supply and demand.

B.C.’s other fuel refinery, the 12,000-bpd facility in Prince George, was recently sold by Husky Energy Inc. to Tidewater Midstream and Infrastructure Ltd.

Shares in Calgary-based Parkland, Canada’s largest independent fuel marketer, jumped by nearly five per cent early Tuesday after it increased its 2019 guidance on the back of third-quarter adjusted earnings that beat analyst expectations.

“Our business is performing well and the increase reflects our strong third quarter and confidence for Q4,” said CEO Bob Espey on the conference call.

The company, which sells gasoline and diesel under brands including Fas Gas, Chevron, Esso, Ultramar and Pioneer, and operates On The Run convenience stores in Canada, said it now expects its adjusted earnings in 2019 before interest, taxation, depreciation and amortization will be $1.24 billion, up $75 million from the previous forecast.

During the quarter, Parkland began the rollout of its national Journie Rewards customer loyalty program in partnership with CIBC in Canada and bought Florida-based fuel marketer Tropic Oil.

The company reported third-quarter net earnings of $26 million, down from $49 million in the year-earlier period, with the slip mainly attributed to an increase in interest on long-term debt relating to its purchase early this year of Caribbean fuel retailer Sol.

It reported adjusted EBITDA of $302 million in the three months ended Sept. 30, up from $200 million in the same period of 2018, as revenue jumped to $4.6 billion from $3.8 billion.


Unknown

Parkland Fuel shares up on adjusted earnings beat, increased guidance for 2019

Shares in Parkland Fuel Corp., Canada’s largest independent fuel marketer, rose Nov. 5 after it increased its 2019 guidance on the back of third-quarter adjusted earnings that beat analyst expectations.

The Calgary-based company says it now expects its adjusted earnings in 2019 before interest, taxation, depreciation and amortization will be $1.24 billion, up $75 million from the previous forecast.

The company, which sells gasoline and diesel under brands including Fas Gas, Chevron, Esso, Ultramar and Pioneer, and operates On The Run convenience stores in Canada, reported third-quarter net earnings of $26 million, down from $49 million in the year-earlier period, mainly due to an increase in interest on long-term debt relating to its purchase early this year of Caribbean fuel retailer Sol.

It reported adjusted EBITDA of $302 million in the three months ended Sept. 30, up from $200 million in the same period of 2018, as revenue jumped to $4.6 billion from $3.8 billion.

Analysts had expected $55.9 million in net income and $154.6 million in adjusted EBITDA on revenue of $4.64 billion, according to financial markets data firm Refinitiv.

During the quarter, Parkland began the rollout of its Journie Rewards customer loyalty program in partnership with CIBC in Canada and bought Florida-based fuel marketer Tropic Oil.