CALGARY, AB, Oct. 19, 2022 /PRNewswire/ – Parkland Corporation (“Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today provided a third quarter business update. Driven by the macroeconomic environment and volatile product prices, third quarter results will be below our expectations. We are confident in our fourth quarter outlook and expect to deliver 2022 Adjusted EBITDA within our guidance range of between $1.6 billion and $1.7 billion.
Q3 2022 Business Update
We expect to deliver Adjusted EBITDA attributable to Parkland (“Expected Adjusted EBITDA”) of approximately $325 million in the third quarter. Primary drivers include:
- USA: Rapidly declining market prices resulted in non-recurring wholesale inventory and risk management losses of approximately $65 million. These more than offset expected contributions from our retail and commercial businesses.
- Refining: Composite utilization of approximately 95 percent was dampened by higher operating, natural gas, transportation and compliance costs, as well as higher trailing crude prices in a declining market. This temporarily lowered our capture of the record refining crack spreads to approximately 55 percent.
- Canada: Falling product prices lowered fuel unit margins compared to the prior quarter. This partially offset steady retail fuel demand and strong non-fuel margins.
Confidence in Q4 Outlook
We remain confident in our outlook for the fourth quarter. In addition to significantly reducing third-party…
