By Canadian Press

Better fuel margins, acquisitions drive Parkland Fuel profit, revenue beats

Aug 3, 2018 | 11:16 AM

CALGARY — Parkland Fuel Corp. says it more than doubled revenue in the second quarter as it enjoyed higher profit margins for fuel and digested two major acquisitions completed last year.

Canada’s largest independent fuel retailer, which has 1,850 gas stations under brands including Esso, Chevron, Fas Gas and Pioneer, says revenue in the three months ended June 30 grew 109 per cent to $3.8 billion compared with $1.8 billion in the same period of 2017.

It says net earnings were $60 million or 45 cents per share, compared with a net loss of $1 million or a penny per share in the second quarter of 2017.

It beat analyst expectations of $49 million in net income and $3.2 billion in revenue, as reported by Thomson Reuters Eikon.

In a quarter marked by soaring gasoline prices across Canada, Parkland reports that gross profit from retail operations were 8.0 cents per litre, up from 5.78 cents per litre in the year-earlier quarter.

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The Calgary-based company completed its $1.7-billion purchase of Chevron Canada’s Burnaby, B.C., refinery and Vancouver-area retail businesses last October, and its $978-million deal for Ultramar stations in Quebec in June 2017.

Accordingly, sales of fuel rose to 4.2 billion litres from 2.6 billion litres.

Parkland is raising its 2018 adjusted earnings before interest, taxes, depreciation and amortization guidance by $125 million to $775 million.

The Canadian Press