Parkland warns Q3 results below expectations, maintains full year guidance
Parkland Corp. is warning its third-quarter results will fall short of its expectations, however the company is maintaining its guidance for the full year.
The Calgary-based company said it expects $325 million in adjusted earnings before interest, taxes, depreciation and amortization for the quarter.
It said the result is being driven by the macroeconomic environment and volatile product prices.
Parkland said rapidly falling gas prices in the U.S. resulted in non-recurring wholesale inventory and risk management losses of about $65 million, while its refining business faced higher operating, natural gas, transportation and compliance costs, as well as higher trailing crude prices.
The company said in Canada, falling product prices lowered fuel unit margins compared with the prior quarter.
However, it noted that it is confident in its fourth-quarter outlook and expects to deliver 2022 adjusted EBITDA within its guidance range of between $1.6 billion and $1.7 billion.
Parkland announced it would buy M&M Food Market in January for $322 million.
With files from Canadian Grocer staff