RED DEER — Parkland Fuel Corp. (TSX:PKI) quadrupled its first-quarter profit as the Alberta-based national fuel distributor benefited from higher sales volumes, prices and refinery margins compared with the same time last year.
The company, based in Red Deer, Alta., had $16.3 million in net income and $955 million of revenue in the three months ended March 31. That’s up from $3.7 million of net income and $675.2 million of revenue a year earlier.
Net income amounted to $1.59 per share, up from 45 cents a year earlier.
Fuel volume increased by 25 per cent to about one billion litres.
“A number of factors came together to provide us with an exceptionally strong quarter,” said Bob Espey, Parkland’s president and chief executive officer.
“Beyond our typical base business, Parkland benefited from very strong refiners’ margins as well as a cold winter across our heating fuel markets.”
Fuel marketing accounted for about 94 per cent over overall sales revenue and 76 per cent of gross profit.
Parkland’s non-fuel commercial segment, which sells agricultural products, lubricants and other products, generated about five per cent of total sales and 17 per cent of gross profit.
Its other non-fuel businesses — primarily generated at its convenience stores — accounted for only one per cent of sales but eight per cent of gross profits.