Parkland Fuel Corp. (TSX: PKI) posted higher year-over-year revenues and earnings for the three months ended March 31, despite lost sales due to unseasonably warm weather and a one-time $4.3-million expense.
The Red Deer-based company, which is Canada’s largest independent marketer and distributor of fuels and lubricants, reported on Tuesday that it had sales and operating revenues of $1.064 billion for the quarter, up 11 per cent from $955.1 million for the same period last year. Parkland’s net earnings were $17.5 million, up seven per cent from $16.3 million — which translated into net earnings per basic share of 27 cents, down 10 per cent from 30 cents a year earlier.
Parkland said in a release that the higher earnings were achieved as a result of lower finance costs and lower depreciation and amortization. However, the company also experienced lower earnings before income, taxes, depreciation and amortization (EBITDA), as well as increased losses on the sale of property, plant and equipment, and higher income taxes.
“Improvements across our business allowed us to manage through an estimated $5-million reduction in EBITDA due to warm weather to deliver solid results this quarter,” said Bob Espey, Parkland’s president and CEO.
Parkland invested $4.3 million in put option contracts to help protect future supply profits. These relate to the refiners margins that Parkland shares in, and which are currently at high levels.
Parkland’s total fuel volume for the quarter was 1.085 billion litres, up four per cent from the 1.044 billion recorded during the same period last year.
Parkland’s brands include Fas Gas Plus, Race Trac Gas, Bluewave Energy, Columbia Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United Petroleum Products and Island Petroleum.