Strong Q1 for Parkland’s Lube Sales

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Strong Q1 for Parkland’s Lube Sales

Canada-based distributor Parkland Fuel Corp. posted a 26 percent increase in consolidated revenue for its lubricant segment for the quarter ending March 31, boosted by higher sales for its United States segment, compared to 2019’s first quarter.

The company posted sales revenue of 113 million Canadian dollars (U.S. $81 million) for its lubricants segment in the first quarter, up from $90 million in the year-earlier period.

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That included CA$16 million for the international segment, down 30 percent from CA$23 million. The international segment consists primarily of the Sol business acquired in January 2019. Sol has operations in 23 countries, predominantly located in the Caribbean and northern coast of South America. It operates and services a network of retail service stations under brands including Esso, Shell and Sol. The international business also serves commercial, industrial and aviation businesses.

The company’s USA segment reported CA$86 million in lubricant revenue for the first quarter, up 62 percent from CA$53 million. The USA segment delivers ExxonMobil and Ridgeline lubricants, chemicals, ancillary automotive products, and equipment to commercial, industrial, marine and wholesale customers through an extensive delivery network in the regions in which Parkland operates. U.S. distributors acquired by Parkland last year included Florida-based distributor Tropic Oil Co., Montana-based Mort Distributing Inc. and Ken Bettridge Distributing Inc. of Utah.

Parkland’s Canada Commercial segment posted CA$11 million, down 21 percent from CA$14 million. Canada Commercial delivers lubricants, oilfield fluids and other petroleum products to commercial, industrial and residential customers across Canada.

The company noted in its discussion and analysis report to shareholders the possible impacts of the Covid-19 pandemic on its business. “While the duration of these events and the extent of the ultimate effects on Parkland’s business are unknown at this time, the demand for transportation fuels, lubricants and related products is strongly connected with such economic conditions, with weakening economic conditions having an adverse effect on our revenue, profitability and ability to service debt and pay dividends,” Parkland said in the report.

Calgary, Alberta province-based Parkland sells branded and private label lubricants to commercial, industrial and wholesale customers.

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Business    Canada    Distributing    Earnings    Finished Lubricants    Logistics & Distribution    North America    Region    U.S.A.