CDN NEWS | 
US NEWS 
CALGARY — Parkland Fuel Corp. shares closed eight per cent higher on Friday after it reported doubling revenue in the second quarter on higher profit margins for fuel and contributions from two major acquisitions completed last year.
The gas station owner's stock leaped to $37.93 after it reported net earnings of $60 million on revenue of $3.8 billion — well ahead of expectations of $49 million profit on $3.2 billion in revenue, as reported by Thomson Reuters Eikon.
"Our record results in the second quarter continue to highlight the contribution of the Chevron and Ultramar acquisitions, the significance of the annual synergies we are realizing and the underlying strength of Parkland's pre-acquisition operations," said CEO Bob Espey.
"Through these acquisitions, we have established a significant Canada-wide scale that enables strong opportunity for continued organic growth."
The Calgary-based company completed its $1.7-billion purchase of Chevron Canada's Burnaby, B.C., refinery and Vancouver-area retail and aviation fuel businesses last October.
Its $978-million deal for Ultramar stations in Quebec closed in June 2017.
Parkland said its exceptional performance is expected to continue this year, noting it has adjusted its target for 2018 adjusted earnings before interest, taxes, depreciation and amortization up by $125 million to $775 million.
It added annual cost savings from last year's acquisitions are coming in better than expected and it bumped up its synergies target by $100 million to about $180 million per year by the end of 2020.
Parkland is Canada's largest independent fuel retailer, with 1,850 gas stations under brands including Esso, Chevron, Fas Gas and Pioneer, as well as convenience stores, bulk fuel locations and commercial fuel supply contracts.
In a quarter marked by soaring gasoline prices across Canada, Parkland reported that gross profit from retail operations was 8.0 cents per litre, up from 5.78 cents per litre in the year-earlier quarter.
Sales of fuel rose to 4.2 billion litres from 2.6 billion litres in the second quarter of 2017.
Parkland reported same-store sales growth of 8.1 per cent at its convenience stores as it launched new private label product categories under its 59th Street Food Co. brand and retrofitted 41 On the Run/Marche Express locations.
Follow @HealingSlowly on Twitter.
Companies in this article: (TSX:PKI)
Dan Healing, The Canadian Press
Share This:
PERSPECTIVE: How Will AI Data Centres Fulfill Their Incredible Demand for Electricity? – Yogi Schulz