CALGARY — Shares in Parkland Fuel Corp., Canada’s largest independent fuel marketer, rose Tuesday after it increased its 2019 guidance on the back of third-quarter adjusted earnings that beat analyst expectations.
The Calgary-based company says it now expects its adjusted earnings in 2019 before interest, taxation, depreciation and amortization will be $1.24 billion, up $75 million from the previous forecast.
The company, which sells gasoline and diesel under brands including Fas Gas, Chevron, Esso, Ultramar and Pioneer, and operates On The Run convenience stores in Canada, reported third-quarter net earnings of $26 million, down from $49 million in the year-earlier period, mainly due to an increase in interest on long-term debt relating to its purchase early this year of Caribbean fuel retailer Sol.
It reported adjusted EBITDA of $302 million in the three months ended Sept. 30, up from $200 million in the same period of 2018, as revenue jumped to $4.6 billion from $3.8 billion.
Analysts had expected $55.9 million in net income and $154.6 million in adjusted EBITDA on revenue of $4.64 billion, according to financial markets data firm Refinitiv.
During the quarter, Parkland began the rollout of its Journie Rewards customer loyalty program in partnership with CIBC in Canada and bought Florida-based fuel marketer Tropic Oil.
This report by The Canadian Press was first published Nov. 5, 2019.
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