Parkland Corp. blames COVID-19 as Q4 profits and revenue slide on lower fuel sales

Parkland Corp. is reporting lower fourth-quarter earnings and revenue as affects of the COVID-19 pandemic lockdowns continue to erode fuel sales.

The Calgary-based convenience store operator and fuel retailer says it had net earnings of $53 million in the last three months of 2020 on revenue of $3.47 billion, down from $176 million on revenue of $4.78 billion in the same period of 2019.

It says it sold 5.4 billion litres of fuel and petroleum products in the fourth quarter, a decrease of seven per cent compared with the year-earlier period.

READ MORE: Parkland posts lower second-quarter net income of $32 million as fuel sales fall by 14% 

It says lower volumes were offset by strong per unit fuel profit margins in Canada and in its international operations, as well as robust company convenience store same-store sales growth in Canada of around eight per cent and a healthy 90 per cent utilization of its Burnaby, B.C., refinery.

Parkland says it will hike its dividend by two per cent, its ninth consecutive annual increase.

The company says it plans growth capital spending of between $175 million and $275 million in 2021, along with between $225 million and $275 million in maintenance capital spending, including about $40 million of work deferred from 2020.

“In 2021, we will strengthen our customer offerings and continue our organic growth initiatives, advance our disciplined acquisition strategy and deepen our commitment to providing customers with low-carbon fuel choices as part of our broader sustainability efforts,” said CEO Bob Espey.