Reduced costs and stronger-than-expected performance by a newly acquired operating division helped Parkland Fuel Corp. (TSX: PKI) overcome a sluggish commercial market in the first quarter of 2013.
The Red Deer-based fuel supplier and reseller reported on Tuesday that it earned $30.5 million during the three months ended March 31 — a 74 per cent jump from the $17.5 million generated in the same period in 2012. Net earnings per basic share were 44 cents, up from 27 cents.
Sales and operating revenues for the quarter reached $1.21 billion, a 14 per cent increase over the $1.06 billion from a year earlier, and total fuel volumes were up 29 per cent — to 1.40 billion litres from 1.09 billion litres — despite reduced volumes for both retail and commercial fuel.
This was due to Parkland Fuel’s acquisition in February of Elbow River Marketing.
“Refiners margins were strong year over year and Elbow River Marketing’s earnings surpassed our expectations in the first quarter with a stronger-than-expected adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $5.2 million,” said Bob Espey, Parkland Fuel’s president and CEO.
“Lower costs throughout our business also helped to offset continued weakness in Parkland commercial fuels’ business environment during the first quarter, which was especially pronounced in the West as drilling completions for natural gas were down 50 per cent compared to a year ago.”
Parkland Fuel is Canada’s largest independent supplier and reseller of petroleum products.