#Canada #financial results #Calgary #Parkland Corporation #Q1 2025

Parkland Corporation Reports First Quarter Results for 2025

On May 10, 2025, Parkland Corporation (TSX: PKI) revealed its full financial and operational results for the first quarter ending March 31, 2025. During this period, the company noted significant improvements compared to the previous year.

Key Highlights

Bob Espey, President and CEO, stated, "The first quarter of 2025 witnessed a recovery compared to 2024, as the refinery made up for a slow start to the year and a one-time impact of $53 million from our exit from the California compliance market. We are encouraged by several positive developments. Our international segment continues to show robust growth, refinery margins were stronger than anticipated, and we expect a strong driving season in Canada. While the macroeconomic and regulatory environment remains volatile, these favorable trends demonstrate the resilience of our portfolio and bolster my confidence in the foundations we've built at Parkland."

Financial Overview

• - Adjusted EBITDA reached $375 million, an increase of $48 million compared to the first quarter of 2024, primarily due to an unplanned 11-week shutdown at the Burnaby refinery in the previous year and strong international results.
• - Net income totaled $64 million (or $0.37 per share) compared to a net loss of $5 million (or -$0.03 per share) in Q1 2024. Adjusted earnings were $65 million ($0.37 per share) versus $43 million ($0.25 per share) a year ago.
• - The available cash flow over the twelve months was $586 million ($3.37 per share), down from $762 million ($4.34 per share) at the end of March 2024, largely due to lower refining margins in the latter half of 2024 and losses from exiting the California compliance market in Q1 2025.
• - Return on Invested Capital (ROIC) was 7.6% for the trailing twelve months, down from 8.9% in the prior year.
• - The company maintained a leverage ratio of 3.6 times and had $2 billion in available liquidity.

Segment Performance

• - Canada experienced an adjusted EBITDA of $110 million, significantly lower than $186 million in Q1 2024, primarily due to the company’s decision to reduce its positions in the California compliance market, resulting in realized losses of $53 million.
• - International operations achieved adjusted EBITDA of $181 million, up from $147 million in the same quarter last year, driven by increased volumes and margins from strategic customers in South America.
• - In the United States, adjusted EBITDA declined to $16 million from $31 million in Q1 2024 as macroeconomic pressures continued to impact fuel demand.
• - The refining segment improved significantly, reporting adjusted EBITDA of $79 million, compared to a loss of $33 million in Q1 2024, aided by an effective maintenance turnaround at the Burnaby facility and favorable market conditions.

Safety Performance

The total recordable injury frequency rate for Parkland over the trailing twelve months was 1.13, slightly up from 1.07 in the first quarter of 2024.

Conclusion

Parkland Corporation remains focused on its strategic goals amid fluctuating market dynamics. The company's leadership believes that the strength of its diversified portfolio and operational efficiencies will continue to support its business objectives in the coming months. For further details, you can access the full financial documents on Parkland’s official website and the Sedar database.

For additional information regarding the performance and future outlook of Parkland Corporation, please stay tuned for updates and official announcements.