CALGARY, AB, March 5, 2025 — Parkland Corporation has officially released its financial and operational results for the quarter and year ending December 31, 2024. The Company also announced that its Board of Directors is conducting a review of strategic alternatives aimed at maximizing value for shareholders.
This Strategic Review will be spearheaded by a Special Committee composed entirely of independent directors. Throughout this process, the Company will assess its business strategy and optimization opportunities while considering various options for value maximization, including asset divestment, acquisitions, transformative combinations, and potentially selling the Company. Parkland has enlisted the expertise of leading financial advisors to assist in this review.
“Our Board is dedicated to acting in the best interests of all shareholders,” stated the Chair of Parkland’s Board. “While we recognize the inherent value of our business, the current share price does not fully reflect this potential. Thus, this Strategic Review is crucial in exploring ways to enhance shareholder value.”
Parkland cautions stakeholders that there are no assurances that this strategic review will lead to any transactions, nor can the terms or timing of any potential transactions be predicted. The Company will maintain engagement with its shareholders and provide updates as the review progresses.
Fourth Quarter and Year-End 2024 Financial Highlights
“As we kick off this Strategic Review, I sincerely appreciate our team’s efforts over the past year,” said the President and CEO of Parkland. “Despite facing challenges, our retail and commercial sectors showcased resilience. While our refining segment underperformed somewhat due to external market pressures, I remain confident in our growth strategy and operational efficiency moving into 2025.”
Q4 2024 Performance Summary
- Adjusted EBITDA reported at $428 million compared to $463 million in Q4 2023.
- Net loss of $29 million ($0.17 per share), a decrease from net earnings of $86 million ($0.49 per share) in Q4 2023.
- Canada’s operations reported consistent Adjusted EBITDA of $190 million, while international operations showed improvement with $171 million, primarily driven by strong retail performance in specific regions.
- The USA segment contributed $32 million in Adjusted EBITDA, though results were below expectations.
- Refining operations saw Adjusted EBITDA drop to $60 million, attributed to lower refining margins.
2024 Year-End Financial Overview
- For the year, Adjusted EBITDA totaled $1,690 million, down from $1,913 million in 2023.
- Net earnings stood at $127 million, a significant decline from $471 million in 2023, reflecting various operational challenges.
- Year-end liquidity improved to $2,045 million, showcasing enhanced financial resilience.
- Parkland achieved a 7.4 percent Return on Invested Capital (ROIC) compared to 9.8 percent in the previous year, highlighting areas for improvement.
- Company-stored volume growth in Canada remained positive at 1.2%, thanks to effective retail strategies.
Shareholder Engagement and Future Plans
Parkland is committed to a disciplined approach to capital allocation to foster sustainable dividend growth and shareholder value. A quarterly dividend increase of approximately 3% has been announced, effective from April 15, 2025.
In 2024, Parkland successfully repurchased around 2.9 million common shares for $125 million, reinforcing its commitment to return capital to shareholders.
About Parkland Corporation
Parkland Corporation is an international leader in fuel distribution, marketing, and convenience retail, operating in 26 countries. The Company focuses on meeting customer needs while offering sustainable fuel options including renewable fuels and electric vehicle charging solutions.
Forward-Looking Statements Notice
This release contains forward-looking statements regarding the Company’s strategic review and operational performance. These statements involve inherent risks and uncertainties and are subject to change without notice.
Financial Measures
This document includes non-GAAP financial measures which are essential for a comprehensive understanding of Parkland’s performance. Investors are encouraged to review these measures in detail in the Management’s Discussion and Analysis for more insights.
