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10/21/2022

Parkland says Q3 results below expectations, maintains full year guidance

Result is being driven by the macroeconomic environment and volatile product prices.
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CALGARY - Parkland Corp. is warning its third-quarter results will fall short of its expectations, however the company is maintaining its guidance for the full year.

The Calgary-based company says it expects $325 million in adjusted earnings before interest, taxes, depreciation and amortization for the quarter.

It says the result is being driven by the macroeconomic environment and volatile product prices.

Parkland says rapidly falling gas prices in the U.S. resulted in non-recurring wholesale inventory and risk management losses of about $65 million, while its refining business faced higher operating, natural gas, transportation and compliance costs, as well as higher trailing crude prices.

The company says in Canada falling product prices lowered fuel unit margins compared with the prior quarter.

However, it noted that it is confident in its fourth-quarter outlook and expects to deliver 2022 adjusted EBITDA within its guidance range of between $1.6 billion and $1.7 billion.

It's been a busy year for the company, which recently completed reached an agreement with the Competition Bureau regarding its purchase of Husky stations from Cenovus. The deal included 109 company owned sites and 47 dealer locations: Parkland plans to convert "a significant number" of the company owned sites to On the Run as part of its goal to build a network of more than 1,000 On the Run locations in Canada and the U.S. by 2025.

Earlier this year, as part of its retail diversification strategy to expand its proprietary food offer, customer reach and innovation pipeline, Parkland acquired M&M Food Market for $322 million.

-with files from Convenience Store News Canada