Floods in B.C. and the temporary shutdown of the Trans Mountain pipeline in the fourth quarter of 2021 cost Parkland Corp. approximately $35 million.
The Calgary-based fuel marketer andconvenience storeretailer made the the figure public Friday, as part of its fourth-quarter results.
On a conference call with analysts, chief executive Bob Espey said Parkland would have delivered record earnings for the full-year 2021 if not for the weather-related shutdown of Trans Mountain in November and the resulting pause in operations at Parkland's Burnaby refinery.
Instead, Parkland said it earned $23 million or 15 cents per diluted share for the quarter ended Dec. 31, down from $53 million or 35 cents per diluted share a year earlier.
But Espey said he is proud of the way Parkland employees stepped up during the B.C. disaster.
"In British Columbia, we ensured our customers and communities had reliable access to food, fuel and convenience items they depend on throughout a major flood event,'' he said.
The Trans Mountain pipeline was shut down for three weeks while crews assessed damage and made necessary repairs in the aftermath of the flooding.
The 1,150-km pipeline carries 300,000 barrels per day of petroleum products from Alberta to B.C. During the shutdown, Parkland paused its refinery processing operations in Burnaby, B.C., due to a lack of crude oil supply from Trans Mountain.
The Burnaby refinery is a key supplier of gasoline to the Vancouver area. While its processing operations were paused, Parkland imported fuel into Burnaby, then stored and transported it to retail and commercial locations by truck and barge.
Also on Friday, Parkland Corp. increased its annual dividend to $1.30 per share compared with $1.235 per share and said that starting in the second quarter it will switch to a quarterly payment schedule from monthly payments.
Parkland's fourth-quarter sales and operating revenue totalled $6.29 billion, up from $3.51 billion in the fourth quarter of 2020.
On an adjusted basis, Parkland says it earned 36 cents per diluted share in its most recent quarter, up from an adjusted profit of 28 cents per diluted share a year earlier.
The Canadian Independent Petroleum Marketers Association (CIPMA) has a new name: The Canadian Energy Marketers Association (CEMA).
The national not-for-profit trade association, which has served as the voice of traditional and alternative fuel marketers in Canada for over two decades, is "changing its name to reflect the evolution of our nation’s vital energy supply, distribution and marketing industry," according to a release.
CEMA members include progressive leaders who are responsible for the distribution of diverse products like gasoline, diesel, heating oil, propane and aviation fuel, as well as low-carbon transportation energy solutions including renewable fuels and electric vehicle charging stations across a vast geography, to diverse industries, and to millions of Canadian consumers.
“For decades, we have helped Canadians in every region and industry to do their work, live their lives and contribute to their communities, all while fuelling the Canadian economy,” said Jennifer Stewart, CEMA’s CEO. “As we look towards the future and rebrand to reflect our critical role in it, we will continue to advocate for our sector in policy-making decisions by demonstrating our dedication to innovation, our commitment to emissions reductions and our meaningful contribution to economic growth.”
“This association has become a fixture in the Canadian energy industry, and our new name reflects our members’ proactive, solution-oriented approach,” said Peter Kilty, chair, CEMA. “We take great pride in advocating on behalf of the sector with all levels of government because we want to contribute to strong, effective policy which ensures a robust Canadian supply chain that can process, distribute, and sell a diverse mix of energy solutions as part of Canada’s long-term carbon reduction strategy.”
CEMA notes its members "are committed to channeling the sector’s unparalleled experience and adaptability, and to continue to help policymakers work towards achieving net zero by 2050. This has been demonstrated by members’ early adoption of – and consistent commitment to – innovation within their businesses, and CEMA leadership will continue to support its members as they grow and adapt their businesses at this unprecedented time in Canadian and global history.
Strategic Retail Partners (SRP) expands reach with MobilEssentials acquisition
Strategic Retail Partners (SRP), a portfolio company of Aurora Capital Partners and a North American category manager and solutions provider to more than 70,000 retail outlets (including c-stores across Canada), is acquiring the assets of MobilEssentials, which distributes of tech accessories and merchandise products to more than 23,000 retail partners in the grocery, restaurant and convenience store channels.
This purchased, as well as SRP's acquisition of Aerial Bouquets in November 2021, is designed to help to accelerate SRP’s growth in the grocery channel. MobilEssentials’ product line will extend SRP’s portfolio to include fast-moving, high-demand mobile device accessories, such as chargers and earbuds.
“We’re excited that MobilEssentials is joining the SRP team,” Don McIntyre, SRP’s CEO, said in a release. “Their product line is a perfect complement to our diverse assortment of electronics, as well as eyewear, plush toys, and other essential and in-demand consumer products.”
MobilEssentials products are sold under a range of proprietary brands include INFINITEK, cordzilla, mobilcharge, mobilsmart, Twister, GoTek, and more.
“MobilEssentials has been a strong partner to its retailers by efficiently sourcing highly desired products while providing complete category management solutions. Our customer base of convenience stores, truck & travel centres, and hospitality retailers will benefit from their addition to the SRP family,” added SRP COO Tim Ramsey.