RED DEER, Alta. – Fuel distributor and marketer Parkland Fuel Corp. (TSX:PKI) reported Wednesday a third-quarter profit of $24.5 million, reversing a year-ago loss of $1.2 million as sales and operating revenues jumped 34 per cent on the strength of a recent major acquisition.
The company, based in Red Deer, Alta., said its earnings amounted to 36 cents per share, compared with a loss of two cents per share in the same period a year earlier.
Revenues grew to $1.06 billion from a year-earlier $790.8 million as fuel sales volumes for the quarter increased 20 per cent to 1.08 billion litres, partly due to Parkland’s acquisition in the summer of Cango Inc. as well as increased economic activity in Western Canada and improved sales.
The Cango fuel marketing business operates through a network of 155 retailers and dealers in Ontario under the Cango, Sunys, Gas Rite and Esso brands.
“In our retail fuel division, we expect the combination of continued robust economic activity in our western markets and stable economic activity in the east to contribute to volume growth for the balance of 2011,” president and CEO Bob Espey said in a statement.
“Refiners’ margins remained strong in October, and our supply team continues to be particularly effective at capturing additional profits through better management of our supply portfolio. In our commercial fuel division, the outlook for growth also appears positive as major customers in oilfield operations and other segments in Northern Alberta and British Columbia continue to expand their operations.”
Parkland is Canada’s largest independent marketer and distributor of petroleum products, delivering gasoline, diesel fuel, lubricants and heating oil to businesses, consumers and wholesale customers across the country.
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