Parkland Corp., parent company of convenience-store chain Parkland USA, gave an update on its sale of noncore assets in its first-quarter 2024 earnings report.
“The team continues to deliver on our strategy and optimize our portfolio,” said Bob Espey, president and CEO of the Calgary, Alberta-based company. “We have identified more than $400 million [U.S. $291.98 million] of noncore assets for disposition, many of which have been sold or are in the advanced stages of negotiation. This represents more than 80% of our $500 million [U.S. $364.97 million] target by the end of 2025. I have full confidence in our team's ability to execute our operational plan that leverages our customer advantage and unique supply benefits, despite headwinds in some of the markets where we operate.”
- Parkland Corp is No. 38 on CSP’s 2024 Top 40 Updateto the 2023 Top 202ranking of U.S. c-store chains by store count. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
In Parkland’s first-quarter 2023 earnings call, Espey first announced the fuel and convenience-store company’s plan to sell off up to $368.5 million of noncore assets. The sites are in Canada, and primarily in urban areas with high real estate value.
Parkland Corp’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $238.2 million for first-quarter 2024, a 17% decrease as compared to first-quarter 2023, driven by an unplanned shutdown of the Burnaby Refinery, which began as a result of extreme cold weather and was extended by technical issues during the restart, Parkland said.
In its U.S. segment of the business, adjusted EBITDA was $24 million, up 57% from first-quarter 2023.
“Performance reflects ongoing integration efforts, including c-store improvements and On the Run rebrands. Lower fuel unit margins and volumes reflect broader industry trends,” Parkland said.
In April, two of Parkland’s shareholders—including its largest shareholder, Simpson Oil Ltd.—called for a strategic review of the company.
Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas. It’s the parent company of Parkland USA, which has more than 200 company-owned convenience stores in the United States under brands including On the Run.
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