Parkland Fuel Corp. reports all-time profit
Parkland Fuel Corp. (TSX: PKI) is reporting 2012 earnings of $84.9 million, a 93 per cent improvement on its 2011 performance of $43.9 million and an all-time high for the Red Deer-based company.
Parkland, which is Canada’s largest independent marketer and distributor of petroleum products, saw its 2012 revenues increase by four per cent, to $4.13 billion from $3.98 billion. Earnings per basic share jumped 73 per cent, to $1.28 from 74 cents — and the company announced that it is increasing its annual dividend by two cents, to $1.04.
Parkland said its bottom line was helped by reduced operating costs and the elimination of one-time expenses recorded in 2011. But it also experienced reduced revenues from non-fuel commercial operations.
Total fuel volumes in 2012 were 4.24 billion litres, up two per cent from 4.16 billion litres in 2011.
The company attributed much of this increase to its acquisition of fuel marketing business Cango Inc. in the second quarter of 2011.
For the fourth quarter of 2012, Parkland’s net earnings were $9.5 million, up 28 per cent from the same period in 2011. Revenues slid two per cent, to $998.4 million from $1.01 billion.
Earnings per basic share for the quarter were up 20 per cent, to 14 cents from 12 cents.
Fuel volumes declined by three per cent, to 1.06 billion litres from 1.10 billion litres.
Bob Espey, Parkland’s president and CEO, said the company is “well-positioned to grow through further acquisitions in 2013.”
Parkland’s 2013 annual meeting and a special meeting of shareholders is scheduled for May 8 in Calgary.