Parkland looks to double earnings
Parkland Corp. is aiming to about double its earnings in less than five years after swinging to a profit in the first quarter despite lower revenues and fuel volumes sold.
The Calgary-based convenience store operator and fuel retailer says it wants to post $2 billion of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) attributable to shareholders by the end of 2025, up from $967 million last year and $1.27 billion in 2019.
The increase could come from expanding its existing network, acquisitions and enhancing margins.
Parkland says it had net earnings attributable to shareholders of $31 million or 20 cents per diluted share in the first three months of 2021 on revenue of $4.23 billion, compared with a loss of $79 million or 53 cents per share on revenue of $4.32 billion in the same period of 2020
The company says it sold 5.5 billion litres of fuel and petroleum products in the quarter, a decrease of 6.3 per cent compared with the year-earlier period.
Parkland was expected to earn $71.1 million or 43 cents per share on $4 billion of revenues, according to financial data firm Refinitiv.
“In addition to what has made us successful over the past decade, we see opportunity to grow our renewable fuel business while harnessing our existing network to provide electric vehicle charging options,” said CEO Bob Espey.
Canada’s adjusted EBITDA increased 14 per cent to $116 million in the quarter. International earnings were flat at $67 million while acquisitions drove U.S. earnings up $4 million to $20 million.