Archive for the ‘energy’ Category

Parkland Announces Date of 2023 First Quarter Results and Annual and Special Meeting of Shareholders

CALGARY, AB, April 21, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) expects to announce its 2023 first quarter results after markets close on Wednesday, May 3, 2023. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Thursday, May 4, 2023, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/nog8aEnNBqP

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID:79037941). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 79037941).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and www.sedar.com after the results are released.

Annual and Special Meeting of Shareholders

Parkland will host its 2023 Annual and Special  Meeting of Shareholders in a virtual-only format. The virtual-only meeting will be conducted via live audio webcast online on Thursday, May 4, 2023, at 9:00 a.m. MDT (11:00 a.m. EDT).

All shareholders will be able to attend the live virtual meeting. Information for shareholders is posted in Parkland’s Management Information Circular available at www.parkland.ca and under Parkland’s profile at www.sedar.com.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in twenty-five countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultrafast Electric Vehicle charging.

Our proven business model is centered around organic growth, our supply advantage, driven by scale and our integrated refinery and supply infrastructure, acquiring prudently, and integrating successfully. Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values; safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland’s Burnaby Refinery has returned to normal operations following successful completion of scheduled turnaround

CALGARY, AB, April 11, 2023 /PRNewswire/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), announced today that the previously announced eight-week turnaround at the Burnaby Refinery has been safely completed. Following a successful start-up phase, the facility is now fully operational.

“I would like to congratulate the team who worked diligently and safely to complete this maintenance turnaround on time and within budget,” says Ryan Krogmeier, Senior Vice President, Supply, Trading and Refining. “Our team’s consistent execution and use of innovative technologies delivered a successful project that will help optimize ongoing refinery operations.”

About Parkland

Parkland is an international fuel distributor and retailer with operations in 25 countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast electric vehicle charging.

Our proven business model is centered around organic growth and our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently, and integrating successfully. Our strategy is focused on developing the existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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LONGi donates solar panels in collaboration with ASOFER for the INDOCAL Program in Dominican Republic

This donation is part of LONGi’s “Latam Green Future” initiative to contribute to society and the environment.

SANTO DOMINGO, Dominican Republic, March 30, 2023 /PRNewswire-HISPANIC PR WIRE/ – The world leader in solar technology, LONGi, donated five Hi-MO 5m photovoltaic modules to the Dominican Institute for Quality (INDOCAL), the national authority responsible for standardization, metrology and conformity assessment in the Dominican Republic, in order to implement its certification scheme for Installers of Photovoltaic Systems.

Rodrigo Sotelo, Sr. Sales Utility Manager Mexico and Dominican Republic for LONGi Solar, mentioned that, with this donation, LONGi reaffirms its commitment to the professionalization of the photovoltaic industry in the country and the support to the challenges posed by climate change, as a joint fight through technological innovation. This donation is also part of LONGi’s “Latam Green Future” initiative to contribute to society and the environment.

“At INDOCAL, we have developed a certification scheme to validate the training and certify the competencies and technical skills of the Photovoltaic System Installers currently operating in the market. With the implementation of this certification scheme, we seek to contribute to the strengthening of the competencies of the technical personnel linked to the renewable energy sector. We are grateful to ASOFER (Association for the Promotion of Renewable Energies), the promoters of this new Standard, for bringing us closer to LONGi and providing state-of-the-art photovoltaic technology for the young talents that lead the photovoltaic transformation”, said Lorenzo Ramirez, INDOCAL’s General Director.

Likewise, Marvin Fernandez, president of ASOFER said that “This is another step towards the goal of having a more skilled and qualified renewable sector in the Dominican Republic”.

About LONGi

Founded in 2000, LONGi is committed to being the world’s leading solar technology company, focusing on customer-driven value creation for full scenario energy transformation.

Under its mission of ‘making the best of solar energy to build a green world’, LONGi has dedicated itself to technology innovation and established five business sectors, covering mono silicon wafers cells and modulescommercial & industrial distributed solar solutionsgreen energy solutions and hydrogen equipment. The company has honed its capabilities to provide green energy and has more recently, also embraced green hydrogen products and solutions to support global zero carbon development. www.longi.com

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Parkland Corporation Announces Agreement with Largest Shareholder Simpson Oil; Builds on Longstanding Relationship

Ensures Simpson’s representation and continued support for Parkland to maximize shareholder value

Addresses letter received today from activist Engine Capital

CALGARY, AB, March 22, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced it has entered into an agreement dated March 21, 2023 (the “Agreement”) with its largest long-term shareholder Simpson Oil Limited (”Simpson Oil”).   The Agreement furthers the longstanding and successful relationship between Parkland and Simpson Oil. The Agreement provides Simpson Oil, holder of over 19% of the issued and outstanding Parkland shares, the right to designate up to two nominees for election to the Board of Directors of Parkland and includes customary voting support obligations in favour of the Board.

“We appreciate the confidence that Simpson Oil has shown in the Parkland Team and the Company’s strategic direction,” said Jim Pantelidis, Chairman of the Board of Directors of Parkland. “Since Simpson Oil became our largest shareholder, we have continued to advance our strategy and strengthen our growth platform through prudent acquisitions, while increasing our dividend each year. Through this agreement we have secured our largest shareholders’ ongoing support for our Board of Directors and Management. We look forward to our continued relationship with Simpson Oil, and our mutual confidence and commitment in the long-term strategy and future of our business.”

Under the terms of the Agreement, two nominees of Simpson Oil will be nominated for election at the Company’s upcoming annual and special meeting of shareholders. “The Board will be recommending shareholders vote in favour of the nominees’ election at the upcoming shareholder meeting and we look forward to welcoming them to the Board should they be elected,” said Pantelidis. Additional details on the Agreement will be included in the Management Information Circular for the meeting that will be published in the coming days.

As part of the Board’s ongoing refreshment process, David Spencer and John Bechtold will not be standing for re-election at the meeting, a decision which has been planned for some time. “I want to thank David and John for their service to the Board and their tireless work on behalf of shareholders. Their vision, expertise, and guidance have helped us navigate complex challenges and achieve remarkable success,” said Pantelidis.

The full Agreement is available at www.sedar.com.

Addresses Letter Received from Engine Capital

Separately, the Company wishes to acknowledge receipt of a letter this morning from activist Engine Capital LP (”Engine Capital”).  The company will not speculate on the coincidental timing of activist Engine Capital’s letter in conjunction with today’s announced agreement with Simpson Oil.

As  previously announced, having purposefully accelerated acquisitions over the past two years, Parkland is focused on delivering value from the unique and integrated business it has built. The Company is focused on integrating its recent acquisitions, capturing synergies, lowering leverage, and enhancing shareholder returns. The company is also examining opportunities for dispositions where it creates strong returns for the Company’s shareholders.

Parkland actively communicates with all of its shareholders on an ongoing basis and will continue to do so.

About Parkland

Parkland is an international fuel distributor and retailer with operations in 25 countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast electric vehicle charging.

Our proven business model is centered around organic growth and our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently, and integrating successfully. Our strategy is focused on developing the existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Advisors

Parkland Corporation has retained Kingsdale Advisors as strategic shareholder advisor.  Norton Rose Fulbright Canada LLP is acting as legal counsel and Teneo is acting as strategic communication advisor.

Forward-Looking Statement

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “continue”, “strategy”, “focus” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: Parkland’s business objectives, projects and plans and the execution and impact thereof; and its long-term strategy and relationship with its significant shareholder.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: general economic, market and business conditions; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 21, 2023, and “Forward-Looking Information” and “Risk Factors” included in the Q4 2022 MD&A dated March 2, 2023 , each filed on SEDAR and available on the Parkland website at www.parkland.ca.

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LONGi highlights its commitment to sustainable management at Energyear Tour Chile 2023

SANTIAGO, Chile, March 17, 2023 /PRNewswire-HISPANIC PR WIRE/ — On March 15 and 16 in Santiago, Chile, LONGI participated as a global sponsor in the third edition of the leading congress in the Chilean market, where the need to strengthen transmission, generation and the use of multiple resources was identified in order to be at the forefront of the current energy situation in the world.

Panel of leaders at Energyear Chile 2023, from left to right: Dario Morales, Executive Director of Acesol; Javier Dib, CEO of AES Andes; Clara Bowman, COO of HIF; Andres Madariaga, Development Manager of EDF Renewables Chile; Trinidad Castro, Executive Director of the World Energy Council Chile; Jorge Carlucci, Sr. Sales Manager Utility South Cone of LONGi Solar; Fabrizio Barderi, General Manager of Enel Chile.

The event organized by Energyear had a record attendance of more than 650 attendees, 55 expert speakers and more than 19 panels and presentations.

Victoria Meza, Sr. Sales Manager Utility South Cone of LONGi Solar, and Diego Pardow, Minister of Energy of Chile.

For LONGi, sustainable management has been listed as a central criterion for decision making, including continuous investments in innovation and research. The company believes that green energy technology innovations can help achieve carbon neutrality at low cost.

During the session Jorge Carlucci, Sales Manager Utility, mentioned that “LONGi has steadily advanced its climate action, establishing a GEI emissions accounting system covering the company’s entire value chain and accelerating the establishment of a sustainable development and ESG management system. In addition, it has actively increased the proportion of green electricity and continuously improved energy efficiency, reducing the carbon intensity of its products. All these efforts will lay the foundation for the gradual decoupling of productivity growth and carbon emission.”

LONGi reaffirms its commitment to sustainable development and climate action, working with partners from different fields to accelerate the clean energy transition and low-carbon green development.

About LONGi

Founded in 2000, LONGi is committed to being the world’s leading solar technology company, focusing on customer-driven value creation for full scenario energy transformation.

Under its mission of ‘making the best of solar energy to build a green world’, LONGi has dedicated itself to technology innovation and established five business sectors, covering mono silicon wafers cells and modulescommercial & industrial distributed solar solutionsgreen energy solutions and hydrogen equipment. The company has honed its capabilities to provide green energy and has more recently, also embraced green hydrogen products and solutions to support global zero carbon development. www.longi.com/en

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LONGi introduces the new Hi-MO 6 series of photovoltaic modules to the Colombian market

MEDELLIN, Colombia, March 16, 2023 /PRNewswire-HISPANIC PR WIRE/ – On March 9, 2023, in Medellin, Colombia, the world’s leading solar technology manufacturer, LONGi, presented its new series of photovoltaic modules, Hi-MO 6.

The company gathered at the Dann Carlton Medellín Hotel its customers, strategic allies and associations around the Explorer module: classic, but with extraordinary novelties, which is the first product of the series to land in Colombia.

For LONGi, Colombia is a country with great growth potential in terms of sustainable energy development, committed to addressing climate change. This factor makes it extremely attractive to carry out projects that allow the optimal development of the region.

During the event, Santiago Cardenas, Head of DG Sales Mexico, Colombia & Caribbean highlighted that “LONGi remains an undisputed leader in the industry, driving its development through quality technical innovation. The Hi-MO 6 is another solid step towards promoting energy equity, where LONGi seeks to make clean energy equally accessible to all, and thus accelerate the transformation and energy development of the planet”.

About Hi-MO 6

Hi-MO 6 incorporates the new generation of high-efficiency solar cell technology HPBC (Hybrid Passivated Back Contact) that’s unique in its front-side busbar-free design, taking module aesthetics to a new level.

HPBC cell technology can considerably improve the cell’s light absorption and photoelectric conversion capabilities by adjusting the cell’s internal structure, and can thus effectively increase the module’s output power. Modules equipped with HPBC cell technology can generate a greater volume of energy under high-temperature and low-irradiation conditions and also have superior power degradation performance.

The Hi-MO 6 includes four series—Explorer, Scientist, Guardian, and Artist—all of which are in the standard M10 size (182mm).

About LONGi

Founded in 2000, LONGi is committed to being the world’s leading solar technology company, focusing on customer-driven value creation for full scenario energy transformation.

Under its mission of ‘making the best of solar energy to build a green world’, LONGi has dedicated itself to technology innovation and established five business sectors, covering mono silicon wafers cells and modulescommercial & industrial distributed solar solutionsgreen energy solutions and hydrogen equipment. The company has honed its capabilities to provide green energy and has more recently, also embraced green hydrogen products and solutions to support global zero carbon development. www.longi.com/en

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Parkland Reports Record 2022 Fourth Quarter and Year-End Results

Record fourth quarter and full year Adjusted EBITDA of $455 million and $1.620 billion

Not proceeding with stand-alone renewable diesel complex; committed to co-processing expansion

Annualized dividend increasing to $1.36 per share

CALGARY, AB, March 2, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three months and year ended December 31, 2022.

Q4 2022 Highlights

  • Record Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”1) of $455 million, up 75 percent from the fourth quarter of 2021, with each segment increasing compared to the prior year.
  • Cash generated from operating activities of $629 million ($3.65 per share, basic2) up 433 percent from 2021.
  • Net earnings attributable to Parkland (”net earnings”) of $69 million ($0.39 per share, basic) up 214 percent from the fourth quarter of 2021, and Adjusted earnings attributable to Parkland (”Adjusted earnings”3) of $117 million ($0.67 per share, basic) up 113 percent from the fourth quarter of 2021.
  • Repurchased $40 million of Parkland common shares for cancellation.
  • Consolidated 100 percent ownership of our International segment effective October 18, 2022.

2022 Highlights

  • Parkland delivered its best safety performance in 2022, with a total recordable injury frequency rate4 of 1.05, an 8 percent improvement from the prior year.
  • Record Adjusted EBITDA of $1.620 billion, up 29 percent from 2021.
  • Cash generated from operating activities of $1.326 billion ($8.29 per share, basic2) up 47 percent from 2021.
  • Net earnings of $310 million ($1.94 per share, basic) up 220 percent from 2021 and Adjusted earnings of $468 million ($2.93 per share, basic) up 26 percent from 2021.
  • Leverage ratio5 of 3.4x and liquidity available2 of $1.5 billion.
  • Fuel volumes of 27 billion litres, up over 13 percent from 2021.
  • Continued to expand our ON the RUN convenience brand to more than 650 locations and grew our JOURNIE™ rewards loyalty program to 4.1 million members.

“I would like to thank the Parkland team for delivering an excellent year and commend them for their ongoing focus on safely serving our customers,” said Bob Espey, President and Chief Executive Officer. “We advanced our strategy, strengthened our supply advantage, delivered record Adjusted EBITDA, and enhanced shareholder distributions. Our accomplishments demonstrate the strength of our integrated business model and highlight our focus on creating long-term shareholder value. We expect record Adjusted EBITDA in 2023 and are raising our annual dividend for the eleventh consecutive year.”

“Having accelerated acquisitions, we are focused on integration, capturing synergies, deleveraging and enhancing shareholder returns,” added Espey. “While we are not proceeding with the planned renewable diesel complex at our Burnaby Refinery, we will continue to expand our co-processing volumes. We are grateful for the support our renewable diesel project has had from all levels of government, particularly the Province of B.C.”

Q4 2022 Segment Highlights

  • Canada delivered Adjusted EBITDA1 of $197 million, up 29 percent from Q4 2021 ($153 million). Performance was underpinned by strong fuel unit and c-store margins and acquisitions. Food and Company C-Store Same Store Sales Growth (excluding cigarettes)3 was 6 percent (4.7 percent in Q4 2021).
  • International delivered Adjusted EBITDA of $110 million, up 41 percent, from Q4 2021 ($78 million). Performance was underpinned by the consolidation of our International segment and wholesale, aviation and retail volume growth which was driven by tourism recovery.
  • USA delivered Adjusted EBITDA of $46 million, up 15 percent from Q4 2021 ($40 million). Performance was underpinned by incremental contribution from acquisitions and growth in our base business.
  • Refining delivered Adjusted EBITDA1 of $128 million, up 700 percent, from Q4 2021 ($16 million). Performance was underpinned by composite utilization4 of 97.7 percent, safe and consistent operations, and robust margins while the fourth quarter of 2021 was impacted by the shutdown of a major pipeline and turnaround activities at Parkland’s refinery in Burnaby, British Columbia (the “Burnaby Refinery”).

Renewable Diesel Complex Update

After careful consideration, and consistent with Parkland’s commitment to capital discipline, the Company will not proceed with its plans to build a stand-alone renewable diesel complex at the Burnaby Refinery at this time. Several factors have impacted the competitiveness of the renewable diesel complex, including rising project costs, a lack of market certainty around emerging renewable fuels and the U.S. Inflation Reduction Act of 2022, which advantages U.S. producers.

Parkland remains committed to its low carbon journey and will continue to extend its low carbon fuel innovation and leadership by expanding co-processing at the Burnaby Refinery to 5,500 barrels per day. Co-processing forms part of Parkland’s commercial decarbonization strategy to provide its customers with a portfolio of low carbon products and services to help them meet their low carbon goals.

Enhancing Shareholder Distributions

  • Parkland’s quarterly dividend will increase from $0.325 to $0.340 per common share, effective with the quarterly dividend payable on April 14, 2023 to shareholders of record at the close of business on March 22, 2023. Dividends are expected to be declared and paid on a quarterly basis.
  • To augment the ongoing return of capital to shareholders through dividends, Parkland purchased for cancellation 1.45 million Parkland shares for $40 million under its normal course issuer bid (”NCIB”) program in the fourth quarter. Operating within its disciplined capital allocation framework which prioritizes deleveraging, followed by enhancing shareholder distributions and growth, the Company expects to continue to opportunistically utilize its NCIB program.

Sustainability

Sustainability is deeply embedded across Parkland’s business. Sustainability accomplishments in 2022 are described in the Q4 2022 MD&A. Highlights include:

  • Co-processed over 111 million litres of bio-feedstocks at the Burnaby Refinery in 2022, which has the equivalent impact of taking over 113,000 cars off the road.
  • Awarded the Emerging Clean Technologies Award at the 2022 Global Energy Show in recognition of the Company’s co-processing success at the Burnaby Refinery.
  • Launched one of western Canada’s largest ultra-fast electric vehicle charging networks, with 26 sites currently operational. Parkland received $6.8 million in funding support from National Resources Canada and the Government of British Columbia.
  • Parkland maintains an AA ESG rating from Morgan Stanley Capital International (MSCI), representing the top 22 percent of the index constituents.

_____________________________

1 Total of segments measure. See “Total of Segments Measures” section of this news release.

2 Supplementary financial measure. See “Supplementary Financial Measures” section of this news release.

3 Non-GAAP financial measure or non-GAAP financial ratio. See “Non-GAAP Financial Measures and Ratios” section of this news release.

4 Non-financial measure. See “Non-Financial Measures” section of this news release.

5 Capital management measure. See “Capital Management Measures” section of this news release.


Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended December 31,

Year ended December 31,

Financial Summary

2022

2021(1)

2022

2021

Fuel and petroleum product volume (million litres)

6,637

6,397

27,036

23,900

Sales and operating revenue

8,719

6,286

35,462

21,468

Adjusted EBITDA(2)

455

260

1,620

1,260

Canada(1)(2)(4)

197

153

702

562

International

110

78

383

294

USA(1)

46

40

126

132

Refining(1)(2)(4)

128

16

516

362

Corporate(1)

(26)

(27)

(107)

(90)

Net earnings attributable to Parkland

69

22

310

97

Net earnings per share – basic ($ per share)

0.39

0.15

1.94

0.64

Net earnings per share – diluted ($ per share)

0.39

0.15

1.92

0.64

Adjusted earnings(3)

117

55

468

372

Adjusted earnings per share – basic ($ per share)(3)

0.67

0.36

2.93

2.46

Adjusted earnings per share – diluted ($ per share)(3)

0.67

0.36

2.91

2.45

TTM Distributable cash flow(3)

818

660

818

660

TTM Distributable cash flow per share(3)

5.11

4.34

5.11

4.34

Cash generated from operating activities

629

118

1,326

904

(1) Certain amounts in the comparative periods were restated and reclassified to conform to the presentation used in the current period with respect to the allocation of Corporate costs

(2) Total of segments measure. See “Total of Segments Measures” section of this news release.

(3) Non-GAAP financial measure or non-GAAP financial ratio. See “Non-GAAP Financial Measures and Ratios” section of this news release.

(4) For comparative purposes, information for the comparative periods were restated due to a change in segment presentation. Refer to the Basis of presentation section of the Q4 2022 MD&A.


Q4 2022 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, March 3, 2023 at 6:30 am MST (8:30 am EST) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/91L3lBVlvgx

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 58680945). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 58680945).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

MD&A and Annual Consolidated Financial Statements

The management’s discussion and analysis for the three months and year ended December 31, 2022 (the “Q4 2022 MD&A”) and Annual Consolidated Financial Statements for the year ended December 31, 2022 (the “2022 Annual Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three months and year ended December 31, 2022. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. The French versions of the Q4 2022 MD&A and the 2022 Annual Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in 25 countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast electric vehicle charging.

Our proven business model is centered around organic growth and our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently, and integrating successfully. Our strategy is focused on developing the existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: Parkland’s business model, objectives and strategies, including its focus on developing the existing business in resilient markets, growing our food, convenience and renewable energy businesses, and helping customers to decarbonize; creating long-term shareholder value; integrating acquired businesses and capturing synergies relating thereto; Parkland’s disciplined capital allocation framework, including prioritizing deleveraging, followed by enhancing shareholder distributions and growth; Parkland’s commitment to its low carbon journey and continuing to extend its low carbon fuel innovation and leadership by expanding co-processing at the Burnaby Refinery to 5,500 barrels per day; future share repurchases under the NCIB program, if any; expectation of delivering record Adjusted EBITDA in 2023; future dividends, if any, including the amount, timing and payment thereof; and building one of western Canada’s largest ultra-fast electric vehicle networks, including the size, completion and funding thereof.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom and meeting our targets and commitments relating thereto; Parkland’s management systems and programs and risk management strategy; competitive environment of our industry; retail pricing, margins and refining crack spreads; availability and pricing of petroleum product supply; volatility of crude oil and refined product prices; ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; environmental impact; changes in environmental and regulatory laws, including the ability to obtain or maintain required permits; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Cautionary Statements Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recent Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” included in the Q4 2022 MD&A, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization, and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable International Financial Reporting Standards (”IFRS”) measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage and liquidity of the business. These specified financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

Adjusted earnings is a non-GAAP financial measure and Adjusted earnings per share is a non-GAAP financial ratio included in this news release to assist management, investors and analysts with the analysis of the core operating performance of business activities of Parkland on a consolidated level. This non-GAAP financial measure and ratio do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios. See below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share for the three months and year ended December 31, 2022 and December 31, 2021.

Three months ended December 31,

Year ended December 31,

($ millions, unless otherwise stated)

2022

2021

2022

2021

Net earnings (loss) attributable to Parkland

69

22

310

97

Add: Net earnings (loss) attributable to NCI

5

36

29

Net earnings (loss)

69

27

346

126

Add:

Acquisition, integration and other costs

41

24

117

52

Loss on modification of long-term debt

18

2

77

(Gain) loss on foreign exchange – unrealized

8

6

(8)

(7)

(Gain) loss on risk management and other – unrealized

9

(11)

39

10

Other (gains) and losses(1)

(21)

15

23

190

Other adjusting items(2)

21

4

26

12

Tax normalization(3)

(10)

(13)

(46)

(42)

Adjusted earnings (loss) including NCI

117

70

499

418

Less: Adjusted earnings (loss) attributable to NCI

15

31

46

Adjusted earnings (loss)

117

55

468

372

Weighted average number of common shares (million shares)(4)

173

153

160

151

Weighted average number of common shares adjusted for the effects of dilution (million shares)(4)

174

153

161

152

Adjusted earnings (loss) per share ($ per share)

Basic

0.67

0.36

2.93

2.46

Diluted

0.67

0.36

2.91

2.45

(1) Other (gains) and losses for the three months ended December 31, 2022 include the following: (i) $19 million non-cash valuation gain (2021 – $25 million gain) due to the change in redemption value of Sol Put Option; (ii) $2 million non-cash valuation loss (2021 – $34 million loss) due to the change in fair value of Redemption Options; and (iii) $4 million gain (2021 – $6 million loss) in Other items. Other (gains) and losses for the year ended December 31, 2022 include the following: (i) $30 million non-cash valuation gain (2021 – $87 million loss) due to change in redemption value of Sol Put Option; (ii) $67 million non-cash valuation loss (2021 – $86 million loss) due to change in fair value of redemption options; (iii) $14 million gain (2021 – $17 million loss) in Other items. Refer to Note 23 of the Annual Consolidated Financial Statements.

(2) Other Adjusting Items for the three months ended December 31, 2022 and for the year ended December 31, 2022 mainly include: (i) the share of depreciation and income taxes for Isla joint venture of $3 million (2021 – $4 million) and $11 million (2021 – $7 million) respectively.

(3) The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as gains and losses on asset disposals, acquisition, integration and other costs, unrealized foreign exchange gains and losses, gains and losses on risk management and other, changes in fair value of redemption options, changes in estimates of environmental provisions, loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.

(4) Weighted average number of common shares are calculated in accordance with Parkland’s accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.

TTM distributable cash flow is a non-GAAP financial measure and TTM distributable cash flow per share is a non-GAAP ratio. TTM distributable cash flow is a cash metric that adjusts for the impact of seasonality in Parkland’s business by removing non-cash working capital items and excludes the effect of items that are not considered representative of Parkland’s ability to generate cash flows. Such items include: (i) acquisition, integration, and other costs; (ii) turnaround maintenance capital expenditures, and; (iii) interest on leases and long-term debt, and principal payments on leases attributable to non-controlling interests. Distributable cash flow does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Parkland uses this non-GAAP financial measure to monitor normalized cash flows of the business by eliminating the impact of Parkland’s working capital fluctuations and expenditures used in acquisition, integration and other activities, which can vary significantly from quarter-to-quarter. See below for a reconciliation of distributable cash flow and TTM distributable cash flow to cash generated from operating activities and TTM cash generated from operating activities.

Three months ended

Trailing
twelve
months
ended

December
31, 2022

($ millions, unless otherwise noted)

March 31,
2022

June 30,
2022

September
30, 2022

December
31, 2022

Cash generated from (used in) operating activities(1)

(48)

343

402

629

1,326

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(26)

(27)

(11)

(64)

(74)

316

391

629

1,262

Reverse: Change in other liabilities and other assets

(2)

(1)

23

(23)

(3)

Reverse: Net change in non-cash working capital

436

36

(112)

(221)

139

Include: Maintenance capital expenditures attributable to Parkland

(29)

(44)

(62)

(118)

(253)

Exclude: Turnaround maintenance capital expenditures

4

3

7

Include: Proceeds on asset disposals

1

2

1

4

8

Reverse: Acquisition, integration and other costs

13

18

45

41

117

Include: Interest on leases and long-term debt

(64)

(71)

(74)

(86)

(295)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

2

Include: Payments on principal amount on leases

(37)

(38)

(50)

(52)

(177)

Exclude: Payments on principal amount on leases attributable to NCI

5

4

2

11

Distributable cash flow

250

223

168

177

818

Weighted average number of common shares (million shares)

160

Distributable cash flow per share

5.11

(3) Supplementary financial measure except for annual reporting periods, See “Supplementary Financial Measures” section of this news release.

Three months ended

Trailing
twelve

months
ended

December
31, 2021

($ millions, unless otherwise noted)

March 31,
2021

June 30,
2021

September
30, 2021

December
31, 2021

Cash generated from (used in) operating activities(1)(2)

264

322

200

118

904

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(23)

(21)

(26)

(22)

(92)

241

301

174

96

812

Reverse: Change in other liabilities and other assets

(14)

(9)

4

8

(11)

Reverse: Net change in non-cash working capital(3)

53

22

119

148

342

Include: Maintenance capital expenditures attributable to Parkland

(20)

(45)

(40)

(112)

(217)

Exclude: Turnaround maintenance capital expenditures

3

8

11

Include: Proceeds on asset disposals

5

1

4

4

14

Reverse: Acquisition, integration and other costs

5

11

12

24

52

Include: Interest on leases and long-term debt

(54)

(54)

(56)

(59)

(223)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

1

1

4

Include: Payments on principal amount on leases

(35)

(33)

(36)

(38)

(142)

Exclude: Payments on principal amount on leases attributable to NCI

4

4

5

5

18

Distributable cash flow(4)

186

199

190

85

660

Weighted average number of common shares (million shares)

152

Distributable cash flow per share

4.34

(1) For comparative purposes, information for certain comparative periods was restated due to a change in presentation of cash flows from (used in) operating and financing activities. Interest paid on long-term debt and leases, formerly included in “Cash generated from (used in) operating activities”, is now included in “Cash generated from (used in) financing activities”, reflecting a more relevant presentation of finance costs payments.

(2) Supplementary financial measure except for annual reporting periods, See “Supplementary Financial Measures” section of this news release.

(3) For comparative purposes, information for the quarter ended September 30, 2021 was restated due to a change in presentation for certain emission credits and allowances held for trading, which were formerly included in “Risk management and other” and are now included in “Inventories”.

Food and Company C-Store Same Store Sales Growth (”SSSG”) is a non-GAAP financial ratio and refers to the period-over-period sales growth generated by retail food and convenience stores at the same company sites. The effects of opening and closing stores, temporary closures (including closures for ON the RUN / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models in the period are excluded to derive a comparable same-store metric. Same-store sales growth is a metric commonly used in the retail industry that provides meaningful information to investors in assessing the health and strength of Parkland’s brands and retail network, which ultimately impacts financial performance. Food and Company SSSG does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. The change in label of this metric from Company C-Store SSSG to Food and Company C-Store SSSG reflects the addition of the frozen food retail business acquired as part of the M&M Acquisition. Please see below for a reconciliation of convenience store revenue (Food and C-Store revenue) of the Canada segment with the Food and Company C-Store same store sales (”SSS”) and calculation of the Food and Company C-Store SSSG.

Three months ended December 31,

Twelve months ended December 31,

($ millions)

2022

2021

%(1)

2022

2021

%(1)

Food and Company C-Store revenue

88

93

359

390

Add:

Point-of-sale (”POS”) value of goods and services sold at Food and Company C-Store operated by retailers and franchisees(2)

306

141

1,029

590

Less:

Rental and royalty income from retailers, franchisees and others(3)

(43)

(26)

(144)

(105)

Same Store revenue adjustments(4)(5) (excluding cigarettes)

(164)

(15)

(460)

(44)

Food and Company C-Store same-store sales

187

193

(3.5) %

784

831

(5.7) %

Less:

Same Store revenue adjustments(4) (cigarettes)

(87)

(99)

(375)

(434)

Food and Company C-Store same-store sales (excluding cigarettes)

100

94

6.0 %

409

397

3.1 %

Three months ended December 31,

Twelve months ended December 31,

($ millions)

2021

2020

%(1)

2021

2020

%(1)

Food and Company C-Store revenue

93

95

390

406

Add:

Point-of-sale (”POS”) value of goods and services sold at Food and Company C-Store operated by retailers(2)

141

143

590

582

Less:

Rental income from retailers and others(3)

(26)

(23)

(105)

(99)

Same Store revenue adjustments(4)(5) (excluding cigarettes)

(9)

(9)

(30)

(28)

Food and Company C-Store same-store sales

199

206

(3.2) %

845

861

(1.8) %

Less:

Same Store revenue adjustments(4)(5) (cigarettes)

(102)

(114)

(441)

(479)

Food and Company C-Store same-store sales (excluding cigarettes)

97

92

4.7 %

404

382

5.8 %

(1) Percentages are calculated based on actual amounts and are impacted by rounding.

(2) POS values used to calculate Food and Company C-Store SSSG are not a Parkland financial measure and do not form part of Parkland’s consolidated financial statements.

(3) Includes rental income from retailers in the form of a percentage rent on Food and Company C-Store sales, royalty, franchisee fees and excludes revenues from automated teller machine, POS system licensing fees, and others.

(4) This adjustment excludes the effects of acquisitions, opening and closing stores, temporary closures (including closures for ON the RUN / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models, to derive a comparable same-store metric.

(5) Excludes sales from the 2022 Acquisitions as these will not impact the metric until after the completion of one year of the acquisitions in 2023 as the sales or volume generated in 2022 establish the baseline for these metrics.


Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including cash generated from (used in) operating activities, other than annual periods, cash generated from (used in) operating activities per share, and liquidity available to evaluate the success of our strategic objectives and to set variable compensation targets for employees. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA (each as defined in the 2022 Annual Consolidated Financial Statements) and does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. Adjusted EBITDA for the Canada and Refining segments and Total Renewable Adjusted EBITDA (being a summation of Canada and Refining segment renewable subsegments) are also total of segments measures. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months and year ended December 31, 2022 and December 31, 2021.

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment Eliminations(4)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(5)

For the three months ended December 31,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Fuel and petroleum product volume (million litres)(1)

129

142

3,412

3,307

3,541

3,449

1,054

731

1,054

731

129

142

4,466

4,038

1,762

1,541

1,129

1,394

(849)

(718)

6,637

6,397

Sales and operating revenue

179

146

4,364

3,297

4,543

3,443

122

70

1,145

660

1,267

730

301

216

5,509

3,957

2,324

1,541

1,872

1,413

1

(1,046)

(638)

8,961

6,489

Sub-segment eliminations(2)

(179)

(146)

(63)

(57)

(242)

(203)

Sales and operating revenue – after eliminations

4,364

3,297

1,204

673

2,324

1,541

1,872

1,413

1

(1,046)

(638)

8,719

6,286

Cost of purchases

173

138

3,938

2,979

4,111

3,117

121

47

933

588

1,054

635

294

185

4,871

3,567

2,129

1,367

1,675

1,279

(1,045)

(638)

7,924

5,760

Sub-segment eliminations(2)

(179)

(146)

(63)

(57)

(242)

(203)

Cost of purchases – after eliminations

3,932

2,971

991

578

2,129

1,367

1,675

1,279

(1,045)

(638)

7,682

5,557

Fuel and petroleum product adjusted gross margin, before the following:

6

8

323

266

329

274

1

23

209

66

210

89

7

31

532

332

162

151

148

87

849

601

Gain (loss) on risk management and other – realized

2

2

(2)

(1)

1

1

(21)

(6)

(20)

(6)

3

2

(23)

(7)

(8)

(17)

(28)

(6)

(56)

(28)

Gain (loss) on foreign exchange – realized

4

1

4

1

4

1

(6)

1

1

(1)

2

Other adjusting items to adjusted gross margin(3)

(2)

(2)

4

4

2

4

(3)

10

(1)

15

(3)

Fuel and petroleum product adjusted gross margin

8

10

319

265

327

275

2

23

196

61

198

84

10

33

515

326

152

132

130

81

807

572

Food, convenience and other adjusted gross margin

103

52

103

52

3

6

3

6

106

58

33

23

49

47

1

(1)

188

128

Total adjusted gross margin

8

10

422

317

430

327

2

23

199

67

201

90

10

33

621

384

185

155

179

128

1

(1)

995

700

Operating costs

1

1

169

133

170

134

2

67

70

69

70

3

1

236

203

57

40

112

64

(1)

407

308

Marketing, general and administrative

2

62

40

64

40

1

3

4

4

4

3

65

44

28

24

20

24

29

27

(1)

144

119

Share in (earnings) loss of associates and joint ventures

(5)

(5)

(5)

(5)

Other adjusting items to Adjusted EBITDA

(1)

(1)

(1)

(5)

(7)

1

(1)

(6)

(7)

Adjusted EBITDA (loss) including NCI

5

9

192

144

197

153

(1)

23

129

(7)

128

16

4

32

321

137

110

103

46

40

(26)

(27)

455

285

Attributable to NCI

25

25

Adjusted EBITDA (loss) attributable to Parkland (”Adjusted EBITDA (loss)”)

5

9

192

144

197

153

(1)

23

129

(7)

128

16

4

32

321

137

110

78

46

40

(26)

(27)

455

260

Add: Adjusted EBITDA attributable to NCI

25

Less:

Acquisition, integration and other costs

41

24

Depreciation and amortization

212

156

Finance costs

94

86

(Gain) loss on foreign exchange – unrealized

8

6

(Gain) loss on risk management and other – unrealized

9

(11)

Other (gains) and losses

(21)

15

Other adjusting items

21

4

Income tax expense (recovery)

22

(22)

Net earnings (loss)

69

27

Less: Net earnings (loss) attributable to NCI

5

Net earnings (loss) attributable to Parkland

69

22

(1) Fuel and petroleum product volume for renewable activities only includes fuel trading volumes and does not include volumes of low-carbon-intensity feedstocks used for co-processing and blending.

(2) Represents elimination of transactions between Renewable and Conventional sub-segments within Canada and Refining.

(3) Other adjusting items to adjusted gross margin mainly include $10 million (2021 – nil) of unrealized risk management gain related to underlying physical sales activity in the current period.

(4) Includes inter-segment sales and cost of purchases. See Note 26 of the Annual Consolidated Financial Statements.

(5) Total of Conventional sub-segment is not a financial measure used by Parkland to evaluate performance and is not a Total of segment measure under NI 52-112. It is included in the table above for reconciliation purposes only.

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment Eliminations(5)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(6)

For the year ended December 31,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Fuel and petroleum product volume (million litres)(1)

586

528

12,928

12,485

13,514

13,013

4,065

3,343

4,065

3,343

586

528

16,993

15,828

6,567

5,296

6,147

5,151

(3,257)

(2,903)

27,036

23,900

Sales and operating revenue

871

568

17,252

11,515

18,123

12,083

418

303

4,700

2,680

5,118

2,983

1,289

871

21,952

14,195

8,708

4,870

8,760

4,811

1

(4,149)

(2,472)

36,561

22,275

Sub-segment eliminations(2)

(871)

(568)

(228)

(239)

(1,099)

(807)

Sales and operating revenue – after eliminations

17,252

11,515

4,890

2,744

8,708

4,870

8,760

4,811

1

(4,149)

(2,472)

35,462

21,468

Cost of purchases

841

542

15,746

10,328

16,587

10,870

373

219

3,810

2,134

4,183

2,353

1,214

761

19,556

12,462

7,867

4,201

8,051

4,367

(4,148)

(2,472)

32,540

19,319

Sub-segment eliminations(2)

(871)

(568)

(228)

(239)

(1,099)

(807)

Cost of purchases – after eliminations

15,716

10,302

3,955

2,114

7,867

4,201

8,051

4,367

(4,148)

(2,472)

31,441

18,512

Fuel and petroleum product adjusted gross margin, before the following:

30

26

1,179

983

1,209

1,009

45

84

880

537

925

621

75

110

2,059

1,520

735

583

489

275

3,358

2,488

Gain (loss) on risk management and other – realized

7

10

3

(8)

10

2

(123)

(22)

(123)

(22)

7

10

(120)

(30)

(138)

(73)

(85)

(21)

(336)

(114)

Gain (loss) on foreign exchange – realized

1

(1)

1

(1)

(12)

2

(12)

2

1

(12)

1

(7)

(1)

2

3

(16)

3

Other adjusting items to adjusted gross margin(3)

4

4

4

1

(3)

2

1

7

(2)

Fuel and petroleum product adjusted gross margin

38

36

1,182

974

1,220

1,010

45

84

749

517

794

601

83

120

1,931

1,491

591

506

404

254

4

4

3,013

2,375

Food, convenience and other adjusted gross margin

327

204

327

204

10

9

10

9

337

213

106

86

220

169

1

(1)

663

468

Total adjusted gross margin

38

36

1,509

1,178

1,547

1,214

45

84

759

526

804

610

83

120

2,268

1,704

697

592

624

423

5

4

(1)

3,676

2,843

Operating costs

6

4

620

503

626

507

9

6

262

227

271

233

15

10

882

730

186

146

393

223

1,476

1,109

Marketing, general and administrative

4

1

217

145

221

146

1

16

15

17

15

5

1

233

160

98

83

105

68

113

94

(1)

553

406

Share in (earnings) loss of associates and joint ventures

(21)

(16)

(21)

(16)

Other adjusting items to Adjusted EBITDA(4)

(2)

(1)

(2)

(1)

(2)

(1)

(16)

(13)

(1)

(19)

(14)

Adjusted EBITDA including NCI

28

31

674

531

702

562

35

78

481

284

516

362

63

109

1,155

815

450

392

126

132

(107)

(90)

1,687

1,358

Attributable to NCI

67

98

67

98

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

28

31

674

531

702

562

35

78

481

284

516

362

63

109

1,155

815

383

294

126

132

(107)

(90)

1,620

1,260

Add: Adjusted EBITDA attributable to NCI

67

98

Less:

Acquisition, integration and other costs

117

52

Depreciation and amortization

743

616

Finance costs

331

323

(Gain) loss on foreign exchange – unrealized

(8)

(7)

(Gain) loss on risk management and other – unrealized

39

10

Other (gains) and losses

23

190

Other adjusting items

26

12

Income tax expense (recovery)

70

36

Net earnings (loss)

346

126

Less: Net earnings (loss) attributable to NCI

36

29

Net earnings (loss) attributable to Parkland

310

97

(1) Fuel and petroleum product volume for renewable activities only includes fuel trading volumes and does not include volumes of low-carbon-intensity feedstocks used for co-processing and blending.

(2) Represents elimination of transactions between Renewable and Conventional sub-segments within Canada and Refining.

(3) Other adjusting items to adjusted gross margin mainly include $4 million (2021 – nil) of realized risk management loss related to underlying physical sales activity in another period.

(4) Other adjusting items to Adjusted EBITDA mainly include the share of depreciation and income taxes for the Isla joint venture of $11 million (2021 – $7 million). See Note 11 of the Annual Consolidated Financial Statements for further details.

(5) Includes inter-segment sales and cost of purchases. See Note 26 of the Annual Consolidated Financial Statements.

(6) Total of Conventional sub-segment is not a financial measure used by Parkland to evaluate performance and is not a Total of segment measure under NI 52-112. It is included in the table above for reconciliation purposes only.

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Parkland Announces Date of 2022 Fourth Quarter and Year-End Results

CALGARY, AB, Feb. 16, 2023 /PRNewswire/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2022 fourth-quarter and year-end results after markets close on Thursday, March 2, 2023. A conference call and webcast will then be held at 6:30 a.m. MST (8:30 a.m. EST) on Friday, March 3, 2023, to discuss the results.

Parkland Corporation Logo

To listen to the live webcast and watch the presentation, please use the following link:

https://app.webinar.net/91L3lBVlvgx

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID:58680945). International participants may call 1-800-389-0704 (toll free) (Conference ID:58680945).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and www.sedar.com after the results are released.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in twenty-five countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultrafast Electric Vehicle charging.

Our proven business model is centered around organic growth, our supply advantage, driven by scale and our integrated refinery and supply infrastructure, acquiring prudently, and integrating successfully. Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values; safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland announces 2023 guidance

2023 Adjusted EBITDA guidance1 of $1.7 billion to $1.8 billion
2025 Adjusted EBITDA ambition of $2 billion without further acquisitions
Reducing leverage and enhancing shareholder returns

CALGARY, AB, Dec. 7, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, “our”, or the “Company”) (TSX: PKI) announced today its 2023 guidance which underscores the strength of its differentiated business model, diversified customer base and operating geographies.

“We are two years into the four-year strategy outlined at our investor day last year,” said Bob Espey, President and Chief Executive Officer. “Having accelerated acquisitions, we are focused on integration, capturing synergies, deleveraging and enhancing shareholder returns. We expect to deliver record Adjusted EBITDA in 2023 and have high confidence in achieving our $2 billion Adjusted EBITDA ambition by 2025 without further acquisitions.”

“Our balanced capital allocation approach prioritizes deleveraging, followed by enhancing shareholder distributions and growth,” added Espey. “We will exercise strict capital discipline, investing in accretive opportunities and optimizing our portfolio to ensure strategic fit and attractive returns. We are entering a phase of our strategy where we will harvest value from the unique business we have created.”

2023 Guidance
  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”) of $1,700 million to $1,800 million, which includes an approximate $100 million impact as a result of the eight-week turnaround planned at the refinery in Burnaby, British Columbia (the “Burnaby Refinery”) in the first quarter of 2023.2
  • Capital expenditures of $500 million to $550 million, which is comprised of:
    • Maintenance capital expenditures1 of $300 million to $325 million, which includes approximately $100 million for the planned turnaround at the Burnaby Refinery.
    • Growth capital expenditures1 of $200 million to $225 million, which we expect to be largely funded by anticipated network optimization dispositions.
  • Reduce Leverage Ratio1 to approximately 3 times by year-end 2023.
2025 Outlook

We have high confidence in meeting our 2025 strategic ambition, which includes:

  • $2 billion of Adjusted EBITDA without further acquisitions.
  • Reduce Leverage Ratio to the low end of our target range of 2 to 3 times by year-end 2025.
  • Cash flow generated by operating activities of approximately $9.50 per common share.3

We have made significant progress advancing our strategy and will continue to drive organic growth by:

  • Harnessing our integrated supply platform to extract greater value from our retail and commercial network.
  • Expanding ON the RUN across Canada and into the United States, growing membership of the JOURNIE™ loyalty program, and advancing our food strategy.
  • Helping customers lower their environmental impact with renewable fuels, carbon offsets, and Electric Vehicle charging.
Business model and strategy

Our proven business model is centered around organic growth, our supply advantage, driven by scale and our integrated refinery and supply infrastructure, acquiring prudently, and integrating successfully. Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize.

__________________________________

1 Supplementary Financial Measure. See “Supplementary Financial Measure” section of this news release.

2 Assumes Refining adjusted gross margin of CAD$40/bbl. and average Burnaby Refinery utilization of between 75 and 85 percent. Adjusted gross margin composition is consistent with that disclosed in Section 14A of the Q3 2022 MD&A.

3 Assumes approximately 175 million common shares are issued and outstanding.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in twenty-five countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With over 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast Electric Vehicle charging.

Our business is underpinned by our people, and our values; safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business objectives, strategies and model; Parkland’s focus on integration, capturing synergies, deleveraging and enhancing shareholder returns; expect to deliver record Adjusted EBITDA in 2023; Parkland’s capital allocation approach, including investing in accretive opportunities and optimizing its portfolio and the expected effects thereof; Parkland’s 2023 guidance, including with respect to Adjusted EBITDA, capital expenditures (maintenance capital and growth capital) and leverage ratio; the planned turnaround at the Burnaby Refinery in the first quarter of 2023 and the estimated impact thereof on 2023 guidance; future dispositions and the expectation of such dispositions to largely fund 2023 growth capital; Parkland’s 2025 outlook and its high confidence in meeting its 2025 strategic ambition, which includes $2 billion Adjusted EBITDA, reducing leverage ratio to the lower end of the 2 to 3 times range, and cash flow generated by operating activities of approximately $9.50 per common share; and Parkland’s four-year strategy, the progress thereof and continuing to drive organic growth through its integrated supply platform, expanding ON the RUN and JOURNIE™ loyalty program, advancing its food strategy, and helping customers lower their environmental impact with renewable fuels, carbon offsets and Electric Vehicle charging.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; Parkland’s ability to execute its business strategies and capital allocation approach, including without limitation, with respect to integration, capturing synergies, deleveraging, enhancing shareholder returns and growth, successfully implementing organic growth initiatives and to finance such initiatives on reasonable terms; Parkland’s ability to complete projects; Parkland’s ability to complete the planned turnaround at the Burnaby Refinery in a timely manner and the financial impact thereof; Refining adjusted gross margin and average utilization at the Burnaby Refinery in 2023; number of common shares issued and outstanding in 2025; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q4 2021 MD&A dated March 3, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Supplementary Financial Measures

This press release refers to Adjusted EBITDA guidance, maintenance capital expenditures guidance, growth capital expenditures guidance and Leverage Ratio guidance, which are supplementary financial measures and may not be comparable to similar measures used by other issuers, who may calculate these measures differently. See Section 14 of the Q3 2022 MD&A for a discussion of Adjusted EBITDA guidance, maintenance capital expenditures guidance and growth capital expenditures guidance, which is incorporated by reference into this presentation. See below for details on the Leverage Ratio guidance.

Leverage Ratio Guidance

This measure represents our forecast of the Leverage Ratio and is calculated based on historical data and estimates of future conditions as inputs to make informed forecasts that are predictive in determining the direction of future trends. This measure is a forward-looking measure of which the equivalent historical measure is the Leverage Ratio. See Note 7 of the Q3 2022 interim condensed consolidated financial statements for further detail on the composition of the Leverage Ratio. The Leverage Ratio does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

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Parkland Announces Normal Course Issuer Bid

CALGARY, AB, Nov. 29, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, “our”, or the “Company”) (TSX: PKI) announced today that the Toronto Stock Exchange (”TSX”) has accepted the Company’s notice of intention to implement a normal course issuer bid (the “NCIB”).

Under the NCIB, the Company may purchase for cancellation a maximum of 13,992,412 common shares of the Company (the “Shares”), representing 10% of the public float (as defined by the TSX) as of November 21, 2022. On November 21, 2022, Parkland had 175,942,203 Shares issued and outstanding. The NCIB will commence on December 1, 2022 and will terminate upon the earliest of (i) November 30, 2023, (ii) the Company purchasing the maximum of 13,992,412 Shares, and (iii) the Company terminating the NCIB.

The NCIB is intended to augment Parkland’s ongoing return of capital to shareholders through dividends. Parkland believes that the market price of the Shares may not, from time to time, accurately reflect their underlying value. Accordingly, purchasing the Shares for cancellation under the NCIB may represent an attractive investment opportunity to enhance shareholder value.

Purchases under the NCIB will be made through the facilities of the TSX or alternative trading systems in Canada at the prevailing market price at the time of purchase. In accordance with the rules of the TSX, any daily repurchases (other than pursuant to a block purchase exception as defined by the TSX) under the NCIB will be limited to a maximum of 103,960 Shares, which represents 25% of the average daily trading volume on the TSX of 415,841 for the six months ended October 31, 2022.

In connection with the NCIB, the Company has entered into an automatic share purchase plan (the “ASPP”) with its designated broker to allow for the purchase of Shares during certain pre-determined blackout periods during which the Company would ordinarily not be permitted to purchase Shares. Purchases under the ASPP will be determined by the designated broker in its sole discretion based on purchasing parameters set by Parkland in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will become effective December 1, 2022, concurrently with the commencement of the NCIB. Outside of blackout periods, Shares may be purchased under the NCIB based on management’s discretion, in compliance with the rules of the TSX and applicable securities laws. All purchases made under the ASPP will be included in computing the number of Shares purchased under the NCIB.

The NCIB continues the Company’s existing NCIB (the “Existing NCIB”). Pursuant to the Existing NCIB, the Company has approval from the TSX to repurchase up to 15,091,855 Shares from December 1, 2021 to November 30, 2022. Under the Existing NCIB, the Company has purchased 783,055 Shares on the open market at a weighted average purchase price of $25.5410 per Share.

There can be no assurance as to the precise number of Shares that will be purchased under the NCIB, if any. Parkland may discontinue purchases under the NCIB at any time, subject to compliance with applicable regulatory requirements.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the NCIB and the ASPP, potential purchases of Shares under the NCIB and the ASPP, the anticipated benefits of the NCIB, including enhancing shareholder value and returning additional capital to shareholders, and Parkland’s business strategies and objectives.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to, the failure to obtain approval of the NCIB and the ASPP from the TSX, failure to realize the anticipated benefits of the NCIB, a failure to execute purchases under the NCIB, including under the ASPP, general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; Parkland’s ability to execute its business strategies, including without limitation, Parkland’s ability to acquire prudently and integrate successfully, implement organic growth initiatives and to finance such acquisitions and initiatives on reasonable terms; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q3 2022 MD&A dated November 2, 2022 and the Q4 2021 MD&A dated March 3, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in 25 countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With over 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed advanced supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultrafast Electric Vehicle charging.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our strategy is underpinned by our people, and our values; safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland Announces 2022 Third Quarter Results

Completed previously announced acquisitions
Focused on balance sheet strength and shareholder distributions
On track with 2022 Adjusted EBITDA1 guidance range of $1.6 to $1.7 billion

CALGARY, AB, Nov. 2, 2022 /PRNewswire/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three and nine months ended September 30, 2022.

Q3 2022 Highlights

  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”1) of $328 million, down approximately 10 percent from Q3 2021. Excluding previously disclosed spot wholesale inventory and risk management losses in our USA segment of $65 million, Adjusted EBITDA was $393 million, up 8 percent from Q3 2021.
  • Net earnings attributable to Parkland of $105 million ($0.67 per share, basic), down from $110 million ($0.72 per share, basic) from Q3 2021, and Adjusted earnings attributable to Parkland1 of $49 million ($0.31 per share, basic), down from $129 million ($0.85 per share, basic) from Q3 2021.
  • Trailing twelve months (”TTM”) distributable cash flow1 of $726 million ($4.68 per share) and Q3 2022 cash generated from operating activities of $402 million, up $14 million and $202 million, respectively, from the comparable prior year periods.
  • Leverage ratio1 of 3.5x, up from 3.2x in the prior quarter. Long-term debt primarily increased due to the completion of previously announced acquisitions and foreign exchange impacts.
  • Fuel volumes of approximately 7 billion litres, up over 13 percent from Q3 2021, reflecting the strength of our marketing business and the impact of acquisitions.
  • Completed the previously announced acquisitions of select Husky branded retail locations and the Jamaican business of GB Group. Subsequent to the quarter, we completed the consolidation of our International segment.
  • Parkland is suspending its enhanced Dividend Reinvestment Plan for its common shares until further notice. As a result, shareholders will only receive future dividends in cash.

“Record year to date Adjusted EBITDA puts us on track to deliver our 2022 guidance,” said Bob Espey, President and Chief Executive Officer. “We have completed all previously announced acquisitions and remain focused on integrating the acquired businesses and capturing synergies. We have demonstrated disciplined capital allocation and will strike a balance between reducing our leverage ratio, enhancing shareholder distributions and growth. We anticipate a strong 2023 and remain confident in achieving our $2 billion Adjusted EBITDA ambition by 2025.”

Q3 2022 Segment Highlights

  • Canada delivered Adjusted EBITDA1 of $140 million, up approximately 4 percent from Q3 2021 ($134 million). Performance was underpinned by strong fuel unit and c-store margins and acquisitions.
  • International delivered Adjusted EBITDA of $104 million, up 25 percent, from Q3 2021 ($83 million). Performance was underpinned by our consolidation of our International segment and volume growth driven by ongoing tourism recovery.
  • USA delivered an Adjusted EBITDA loss of $18 million, down from Adjusted EBITDA of $43 million in Q3 2021. Excluding the impact of previously disclosed spot wholesale inventory and risk management losses, Adjusted EBITDA from our retail and commercial businesses was $47 million, an increase of 9 percent from Q3 2021, driven by acquisitions, strong fuel unit margins and marine contract wins.
  • Refining delivered Adjusted EBITDA1 of $135 million, up 7 percent, from Q3 2021 ($126 million). Performance was underpinned by strong refining crack margins, consistent operations, and composite utilization2 of 94 percent (101 percent in Q3 2021), partially offset by higher operating costs.

Sustainability Leadership

Sustainability is deeply embedded across our business. Accomplishments from the third quarter, and year-to-date are included in the Q3 2022 MD&A. Third quarter highlights include:

  • Continued reduction in year-over-year TTM lost time and total recordable injury frequency rates2.
  • Co-processed over 32 million litres of bio-feedstocks; equivalent to removing over 30,000 cars off the road.
  • Generated $16 million of Total Renewable Adjusted EBITDA1.
  • Published our 2021 sustainability report, available here.

__________

1 Specified Financial Measure. See “Specified Financial Measures” section of this news release.

2 Non-Financial Measure. See “Non-Financial Measures” section of this news release.

Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended September 30,

Financial Summary

2022

2021(2)

Fuel and petroleum product volume (million litres)

7,067

6,234

Sales and operating revenue(1)(2)

9,523

5,982

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(3)

328

364

Canada(1)(3)

140

134

International

104

83

USA

(18)

43

Refining(1)(3)

135

126

Corporate(1)

(33)

(22)

Net earnings attributable to Parkland(1)(2)

105

110

Net earnings per share – basic ($ per share)(2)

0.67

0.72

Net earnings per share – diluted ($ per share)(2)

0.66

0.72

Adjusted earnings attributable to Parkland (”Adjusted earnings”)(4)

49

129

Adjusted earnings per share – basic ($ per share)(4)

0.31

0.85

Adjusted earnings per share – diluted ($ per share)(4)

0.31

0.84

TTM Distributable cash flow(4)

726

712

TTM Distributable cash flow per share(4)

4.68

4.72

Cash generated from (used in) operating activities

402

200

( 1)

Certain amounts within sales and operating revenue, cost of purchases, and Marketing, general and administrative were restated and reclassified to conform to the presentation used in the current period. Refer to the Basis of presentation section of the Q3 2022 MD&A.

(2)

Certain amounts were restated for the impact of hyperinflation on the respective prior periods in 2021.

(3)

Total of segments measure. See “Specified Financial Measures” section of this news release.

(4)

Non-GAAP financial measure. See “Non-GAAP Financial Measures and Ratios” section of this news release.

Q3 2022 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, November 3, at 6:30 am MDT (8:30 am EDT) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/APvXEkv1p2a

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 73952116). International participants may call 1-800-389-0704 (toll free) (Conference ID: 73952116).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

MD&A and Consolidated Financial Statements

The management’s discussion and analysis for the three and nine months ended September 30, 2022 (the “Q3 2022 MD&A”) and consolidated financial statements for the three and nine months ended September 30, 2022 (the “Q3 2022 Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three and nine months ended September 30, 2022. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. The French versions of the Q3 2022 MD&A and the Q3 2022 Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in 25 countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With over 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultrafast Electric Vehicle charging.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our strategy is underpinned by our people, and our values; safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business objectives and strategies; Parkland’s expectation of meeting its  2022 Adjusted EBITDA guidance; Parkland’s expectation of a strong 2023 and being on track to achieve its ambition for $2 billion of Adjusted EBITDA by 2025; the payment of future dividends, if any; integrating acquisitions, and capturing synergies; and Parkland’s expected capital allocation, including balancing reducing Parkland’s leverage ratio, enhancing shareholder distributions and growth.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; Parkland’s ability to execute its business strategies, including without limitation, Parkland’s ability to successfully integrate acquisitions, capture synergies, reduce its leverage ratio, successfully implement organic growth initiatives and to finance such acquisitions and initiatives on reasonable terms; Parkland’s ability to complete transactions and projects; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q3 2022 MD&A dated November 2, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization, TTM lost time injury frequency rate and TTM total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable International Financial Reporting Standards (”IFRS”) measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 14 of the Q3 2022 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and ratios and supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage and liquidity of the business. These specified financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 14 of the Q3 2022 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

Adjusted earnings is a non-GAAP financial measure and Adjusted earnings per share is a non-GAAP financial ratio included in this news release to assist management, investors and analysts with the analysis of the core operating performance of business activities of Parkland on a consolidated level. This non-GAAP financial measure and ratio do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See section 14 of the Q3 2022 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios. See below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share for the three months ended September 30, 2022 and September 30, 2021.

Three months ended
September 30,

($ millions, unless otherwise stated)

2022

2021

Net earnings (loss) attributable to Parkland

105

110

Add: Net earnings (loss) attributable to NCI

13

13

Net earnings (loss)

118

123

Add:

Acquisition, integration and other costs

45

12

Loss on modification of long-term debt

(Gain) loss on foreign exchange – unrealized

(16)

(16)

(Gain) loss on risk management and other – unrealized

(1)

(2)

Other (gains) and losses(1)

(88)

10

Other adjusting items(2)

(5)

4

Tax normalization(3)

2

11

Adjusted earnings (loss) including NCI

55

142

Less: Adjusted earnings (loss) attributable to NCI

6

13

Adjusted earnings (loss)

49

129

Weighted average number of common shares (million shares)(4)

156

152

Weighted average number of common shares adjusted for the effects of dilution (million shares)(4)

158

153

Adjusted earnings (loss) per share ($ per share)

Basic

0.31

0.85

Diluted

0.31

0.84

(1)

Other (gains) and losses for the three months ended September 30, 2022 include the following: (i) $59 million non-cash valuation gain (2021 – $40 million loss) due to the change in redemption value of Sol Put Option; (ii) $37 million non-cash valuation gain (2021 – $38 million gain) due to the change in fair value of redemption options; and (iii) $8 million loss (2021 – $8 million loss) in Other items. For additional information on the Sol Put Option, see the Q3 2022 MD&A.

(2)

Other Adjusting Items for the three months ended September 30, 2022 mainly include the share of depreciation and income taxes for Isla joint venture of $2 million (2021 - $3 million).

(3)

The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as gains and losses on asset disposals, acquisition, integration and other costs, unrealized foreign exchange gains and losses, gains and losses on risk management and other, changes in fair value of redemption options, changes in estimates of environmental provisions, loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur. For additional information on the Isla Joint Venture, see the Q3 2022 MD&A.

(4)

Weighted average number of common shares are calculated in accordance with Parkland’s accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.

TTM distributable cash flow is a non-GAAP financial measure and TTM distributable cash flow per share is a non-GAAP ratio. TTM distributable cash flow is a cash metric that adjusts for the impact of seasonality in Parkland’s business by removing non-cash working capital items and excludes the effect of items that are not considered representative of Parkland’s ability to generate cash flows. Such items include: (i) acquisition, integration, and other costs; (ii) turnaround maintenance capital expenditures, and; (iii) interest on leases and long-term debt, and principal payments on leases attributable to non-controlling interests. Distributable cash flow does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Parkland uses this non-GAAP financial measure to monitor normalized cash flows of the business by eliminating the impact of Parkland’s working capital fluctuations and expenditures used in acquisition, integration and other activities, which can vary significantly from quarter-to-quarter.

Three months ended

Trailing
twelve
months
ended
September
30, 2022

($ millions, unless otherwise noted)

December 31,
2021

March 31,
2022

June 30,
2022

September
30, 2022

Cash generated from (used in) operating activities(1)

118

(48)

343

402

815

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(22)

(26)

(27)

(11)

(86)

96

(74)

316

391

729

Reverse: Change in other liabilities and other assets

8

(2)

(1)

23

28

Reverse: Net change in non-cash working capital

148

436

36

(112)

508

Include: Maintenance capital expenditures attributable to Parkland

(112)

(29)

(44)

(62)

(247)

Exclude: Turnaround maintenance capital expenditures

8

4

12

Include: Proceeds on asset disposals

4

1

2

1

8

Reverse: Acquisition, integration and other costs

24

13

18

45

100

Include: Interest on leases and long-term debt

(59)

(64)

(71)

(74)

(268)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

1

3

Include: Payments on principal amount on leases

(38)

(37)

(38)

(50)

(163)

Exclude: Payments on principal amount on leases attributable to NCI

5

5

4

2

16

Distributable cash flow

85

250

223

168

726

Weighted average number of common shares (million shares)

155

Distributable cash flow per share

4.68

(1)

Except for the annual reporting period, cash generated from (used in) operating activities for the trailing twelve months is a supplementary financial measure. Refer to Section 14C of the Q3 2022 MD&A.

Three months ended

Trailing
twelve
months
ended

September 30,
2021

($ millions, unless otherwise noted)

December 31,
2020

March 31,
2021

June 30,
2021

September
30, 2021

Cash generated from (used in) operating activities(1)(2)

(40)

264

322

200

746

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(20)

(23)

(21)

(26)

(90)

(60)

241

301

174

656

Reverse: Change in other liabilities and other assets

12

(14)

(9)

4

(7)

Reverse: Net change in non-cash working capital(3)

288

53

22

119

482

Include: Maintenance capital expenditures attributable to Parkland

(39)

(20)

(45)

(40)

(144)

Exclude: Turnaround maintenance capital expenditures

2

3

5

Include: Proceeds on asset disposals

6

5

1

4

16

Reverse: Acquisition, integration and other costs

14

5

11

12

42

Include: Interest on leases and long-term debt

(56)

(54)

(54)

(56)

(220)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

1

1

4

Include: Payments on principal amount on leases

(35)

(35)

(33)

(36)

(139)

Exclude: Payments on principal amount on leases attributable to NCI

4

4

4

5

17

Distributable cash flow(4)

137

186

199

190

712

Weighted average number of common shares (million shares)

151

Distributable cash flow per share

4.72

(1)

For comparative purposes, information for previous periods was restated due to a change in presentation of cash flows from (used in) operating and financing activities. Interest paid on long-term debt and leases, formerly included in “Cash generated from (used in) operating activities”, is now included in “Cash generated from (used in) financing activities”, reflecting a more relevant presentation of finance costs payments.

(2)

Except for the annual reporting period, cash generated from (used in) operating activities for the trailing twelve months is a supplementary financial measure. Refer to Section 14C of the Q3 2022 MD&A.

(3)

For comparative purposes, information for the quarter ended September 30, 2021 was restated due to a change in presentation for certain emission credits and allowances held for trading, which were formerly included in “Risk management and other” and are now included in “Inventories”.

(4)

Prior to March 31, 2021, distributable cash flow was referred to as adjusted distributable cash flow. The previous measure was consolidated to a single primary measure representing Parkland’s ability to generate cash flows.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including dividends per share, TTM dividends and TTM cash generated from (used in) operating activities, to evaluate the success of our strategic objectives and to set variable compensation targets for employees. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 14 of the Q3 2022 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA (each as defined in the Q3 2022 Consolidated Financial Statements) and does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies. See Section 14 of the Q3 2022 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. Adjusted EBITDA for the Canada and Refining segments and Total Renewable Adjusted EBITDA (being a summation of Canada and Refining segment renewable subsegments) are also total of segments measures. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 14 of the Q3 2022 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months ended September 30, 2022 and September 30, 2021.

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment
Eliminations(4)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(5)

For the three months ended September 30,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Fuel and petroleum product volume (million litres)(1)

176

152

3,233

3,266

3,409

3,418

1,119

929

1,119

929

176

152

4,352

4,195

1,703

1,324

1,692

1,397

(856)

(834)

7,067

6,234

Sales and operating revenue

309

190

4,493

3,240

4,802

3,430

103

121

1,340

792

1,443

913

412

311

5,833

4,032

2,350

1,289

2,417

1,409

(1,114)

(798)

9,898

6,243

Sub-segment eliminations(2)

(309)

(190)

(66)

(71)

(375)

(261)

Sales and operating revenue – after eliminations

4,493

3,240

1,377

842

2,350

1,289

2,417

1,409

(1,114)

(798)

9,523

5,982

Cost of purchases

306

185

4,166

2,946

4,472

3,131

93

92

1,143

622

1,236

714

399

277

5,309

3,568

2,224

1,118

2,293

1,282

(1,114)

(798)

9,111

5,447

Sub-segment eliminations(2)

(309)

(190)

(66)

(71)

(375)

(261)

Cost of purchases – after eliminations

4,163

2,941

1,170

643

2,224

1,118

2,293

1,282

(1,114)

(798)

8,736

5,186

Fuel and petroleum product adjusted gross margin, before the following:

3

5

242

243

245

248

10

29

194

170

204

199

13

34

436

413

99

147

62

78

610

672

Gain (loss) on risk management and other – realized

10

7

11

(3)

21

4

(3)

17

(4)

14

(4)

7

7

28

(7)

65

(6)

(2)

100

(8)

Gain (loss) on foreign exchange – realized

(9)

(4)

(9)

(4)

(9)

(4)

(3)

(3)

(1)

(1)

(13)

(8)

Other adjusting items to adjusted gross margins(3)

2

2

2

(3)

(4)

(10)

1

3

(10)

(1)

Fuel and petroleum product adjusted gross margin

13

12

255

240

268

252

7

29

202

162

209

191

20

41

457

402

158

134

52

76

2

687

655

Food, convenience and other adjusted gross margin

85

51

85

51

3

3

88

51

27

24

62

49

177

124

Total adjusted gross margin

13

12

340

291

353

303

7

29

205

162

212

191

20

41

545

453

185

158

114

125

2

864

779

Operating costs

2

1

153

131

155

132

2

2

70

59

72

61

4

3

223

190

53

37

106

64

1

387

294

Marketing, general and administrative

58

38

58

38

5

4

5

4

63

42

25

21

27

18

32

24

147

105

Share in (earnings) loss of associates and joint ventures

(5)

(7)

(5)

(7)

Other adjusting items to Adjusted EBITDA

(1)

(1)

(1)

(4)

(4)

(1)

(5)

(5)

Adjusted EBITDA (loss) including NCI

11

11

129

123

140

134

5

27

130

99

135

126

16

38

259

222

116

111

(18)

43

(33)

(22)

340

392

Attributable to NCI

12

28

12

28

Adjusted EBITDA (loss) attributable to Parkland (”Adjusted EBITDA (loss)”)

11

11

129

123

140

134

5

27

130

99

135

126

16

38

259

222

104

83

(18)

43

(33)

(22)

328

364

Add: Adjusted EBITDA attributable to NCI

12

28

Less:

Acquisition, integration and other costs

45

12

Depreciation and amortization

202

152

Finance costs

87

61

(Gain) loss on foreign exchange – unrealized

(16)

(16)

(Gain) loss on risk management and other – unrealized

(1)

(2)

Other (gains) and losses

(88)

10

Other adjusting items

(5)

4

Income tax expense (recovery)

(2)

48

Net earnings (loss)

118

123

Less: Net earnings (loss) attributable to NCI

13

13

Net earnings (loss) attributable to Parkland

105

110

(1)

Fuel and petroleum product volume for renewable activities only includes fuel trading volumes and does not include volumes of low-carbon-intensity feedstocks used for co-processing and blending.

(2)

Represents elimination of transactions between Renewable and Conventional sub-segments within Canada and Refining.

(3)

Includes inter-segment sales and cost of purchases. See Note 13 of the Interim Condensed Consolidated Financial Statements.

(4)

Total of Conventional sub-segment is not a financial measure used by Parkland to evaluate performance and is not a Total of segment measure under NI 52-112. It is included in the table above for reconciliation purposes only

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Energyear Caribe 2022: Sungrow Presents Latest Innovations for the Caribbean Decarbonization

SANTO DOMINGO, The Dominican RepublicOct. 21, 2022 /PRNewswire-HISPANIC PR WIRE/ – Recently, Energyear Caribe convened for its third time in the Dominican Republic. Sungrow, the summit’s dedicated sponsor, shared insights on technical innovations applied to PV plants, offering a multiple of opportunities and approaches for Caribbean decarbonization.

Sungrow spokesperson at Energyear Caribe 2022

Deep decarbonization to achieve net-zero CO2 emissions is one of the Caribbean region’s major ambitions as this could have large economic, environmental, and social benefits. As a leader in Caribbean energy growth, the Dominican Republic commits to a 27% greenhouse gas (GHG) reduction by 2030. As a key industry player, what does Sungrow contribute to the carbon neutral goal in the Dominican Republic and other Caribbean countries?

Gonzalo Feito, Sungrow’s Andean and Caribbean Regional Director, introduced some key PV inverter technologies which maximize the return on investments for stakeholders and presented a speech titled, “New Technologies Applied to Photovoltaic Plant Development and Performance,” illustrating Sungrow’s competitiveness in the PV sector.

“An experienced supplier like Sungrow, with 269 GW installations globally can offer customers reliable and resilient inverter solutions, delivering higher availability and lower LCOE,” said Feito. Among its latest inverter portfolio, the 1+X Modular Inverter is the most innovative as it redefines both the ”string” and ”central” inverter with its modular design — the product features a 1.1 MW single unit as the minimum, and the maximum capacity can be expanded to 8.8 MW by combining eight units. Customers can choose from 1.1 MW to 8.8 MW based on their specific project requirements. In addition, operation and maintenance (O&M) duration and costs are significantly decreased due to this modular design.

Most of the Caribbean countries are isolated regions, which often have a weak grid infrastructure. Sungrow’s 1+X Modular Inverter provides strongly enhanced grid support technologies and can operate stably even if the SCR is as low as 1.018.

In addition, the product features an IP65 ingress protection degree and a safe high-level anti-corrosion design of C5, making it durable in island countries, which are vulnerable to harsh conditions like high humidity, earthquakes, and hurricanes.

Although energy storage development in the Caribbean is still nascent, the market displays that the use of energy storage co-located with PV will increase in the years ahead to integrate variable renewable generation. The 1+X Modular Inverter comes with the DC energy storage interface built into this solution. This supports connecting to the energy storage system; thus, enabling customers to enjoy the storage function for future energy use.

The Dominican Republic and other Caribbean countries are focusing on improving their clean energy policies, regulations, and incentives in order to create clear rules for market players. Sungrow is poised to tap the potential of these emerging solar markets with best-in-class inverter solutions and services offered by a professional and dedicated local team. It’s reported that the Company already secured orders in the Dominican Republic, and the projects are currently under construction.

About Sungrow

Sungrow Power Supply Co., Ltd. is the most bankable inverter brand with over 269 GW installed worldwide as of June 2022. Founded in 1997 by Professor Cao Renxian, Sungrow is a leader in the research and development of solar inverters with the largest dedicated R&D team in the industry and a broad product portfolio offering PV inverter solutions and energy storage systems for utility-scale, commercial & industrial, and residential applications, as well as floating PV plant solutions, NEV driving solutions, EV charging solutions and renewable hydrogen production systems. With a strong 25-year track record in the PV space, Sungrow products power over 150 countries worldwide. Learn more here: www.sungrowpower.com.

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Parkland Announces Date of 2022 Third Quarter Results

CALGARY, AB, Oct. 20, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2022 third quarter results after markets close on Wednesday, November 2, 2022. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Thursday, November 3, 2022, to discuss the results.

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To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/APvXEkv1p2a

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 73952116). International participants may call 1-800-389-0704 (toll free) (Conference ID: 73952116).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and www.sedar.com after the results are released.

About Parkland Corporation

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region, and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland provides Q3 2022 business update and completes consolidation of its International Segment

CALGARY, Canada, Oct. 19, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today provided a third quarter business update. Driven by the macroeconomic environment and volatile product prices, third quarter results will be below our expectations. We are confident in our fourth quarter outlook and expect to deliver 2022 Adjusted EBITDA within our guidance range of between $1.6 billion and $1.7 billion.

Q3 2022 Business Update

We expect to deliver Adjusted EBITDA attributable to Parkland (”Expected Adjusted EBITDA”) of approximately $325 million in the third quarter. Primary drivers include:

  • USA: Rapidly declining market prices resulted in non-recurring wholesale inventory and risk management losses of approximately $65 million. These more than offset expected contributions from our retail and commercial businesses.
  • Refining: Composite utilization of approximately 95 percent was dampened by higher operating, natural gas, transportation and compliance costs, as well as higher trailing crude prices in a declining market. This temporarily lowered our capture of the record refining crack spreads to approximately 55 percent.
  • Canada: Falling product prices lowered fuel unit margins compared to the prior quarter. This partially offset steady retail fuel demand and strong non-fuel margins.
Confidence in Q4 Outlook

We remain confident in our outlook for the fourth quarter. In addition to significantly reducing third-party wholesale operations in the US, we anticipate:

  • Returning to a higher capture of refining crack spreads that is more consistent with historical rates.
  • A strong start to the tourist season in our Florida and International markets.
  • Traditionally high seasonal heating demand for our Canadian commercial business.

Parkland has completed its previously announced acquisitions and remains focused on integration, capturing synergies and reducing its leverage ratio.

Q3 2022 Business Update Conference Call and Webcast Details

Parkland will host a conference call and webcast on Wednesday, October 19, at 7:00 a.m. MDT (9:00 a.m. EDT) to discuss its third quarter business update. To listen to the live conference call and webcast, please use the following link: https://app.webinar.net/J2e0oMyorAM

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 92624070). International participants may call 1-800-389-0704 (toll free) (Conference ID: 92624070).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Parkland Completes Consolidation of its International Segment

Parkland has consolidated the ownership of its International Segment by completing the exchange of Simpson Oil Limited’s (”Simpson Oil”) 12.5 million shares in the capital of Sol Investments SEZC, representing Simpson Oil’s remaining 25 percent interest, for 20 million common shares in the capital of Parkland pursuant to the terms of the share exchange agreement between Simpson Oil and the Company dated August 4, 2022 (the “Share Exchange”). Parkland’s third quarter Estimated Adjusted EBITDA and full-year guidance is inclusive of Sol at 100 percent from August 4, 2022.

Additional details relating to the Share Exchange are described in the Company’s press release dated August 4, 2022, which is filed on SEDAR and available on the Parkland website at www.parkland.ca. Concurrently with completing the Share Exchange, the put and call options available to Simpson Oil and Parkland, respectively, with respect to the remaining 25 percent of shares of Sol Investments SEZC were terminated.

About Parkland Corporation

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the essential fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the essential fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, Parkland’s Expected Adjusted EBITDA for the third quarter of 2022; Parkland achieving 2022 results within its 2022 Adjusted EBITDA guidance range; and Parkland’s outlook for the fourth quarter of 2022, including with respect to expected crack spread capture and expected USA and Canada segment operations.

Expected Adjusted EBITDA is considered a forward-looking measure of which the equivalent historical measure would be Adjusted EBITDA as defined in the Section 14A of Parkland’s Management’s Discussion and Analysis dated August 4, 2022 (”Q2 2022 MD&A”). Expected Adjusted EBITDA includes 100 percent of International results for the period from August 4, 2022, when Parkland entered into the share exchange agreement with Simpson Oil Limited to acquire the remaining 25 percent shares of Sol Investments SEZC, to September 30, 2022. Expected Adjusted EBITDA is a preliminary number and is subject to Parkland’s quarter-end financial close procedures and as a result, final third quarter Adjusted EBITDA may differ from Expected Adjusted EBITDA disclosed in this news release.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: Parkland’s quarter-end financial close procedures; general economic, market and business conditions; competitive action by other companies; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q2 2022 MD&A and the management discussion and analysis for the year ended December 31, 2021, dated March 3, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Parkland to consolidate its International Segment; agrees to a share exchange for the remaining 25 percent of Sol

  • Consolidates Parkland’s ownership of Sol to 100 percent, simplifying corporate structure
  • Increases the Simpson Group’s ownership of Parkland to 19.54 percent, demonstrating its long-term confidence in Parkland, its management team and growth strategy
  • On a trailing 12-month basis, adds approximately $110 million of annual Adjusted EBITDA to Parkland’s International Segment

CALGARY, AB, Aug. 4, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) announced it has entered into a share exchange agreement with Simpson Oil Limited (”Simpson Oil”), to exchange Simpson Oil’s remaining 25 percent of Sol Investments SEZC (”Sol”) for 20 million common shares (”Parkland Shares”) in the capital of Parkland (the “Share Exchange”). Following the completion of the Share Exchange, Parkland will hold 100 percent of the securities of Sol, a proven international growth platform which spans 23 countries in the Caribbean region and South America.

“We are excited to have the Simpson family expand their ownership in Parkland,” said Bob Espey, President and Chief Executive Officer. “We value the Simpson’s confidence in our growth strategy and long-term vision and are grateful for their ongoing support for the Parkland team. We are consolidating our ownership of Sol in a way that is immediately accretive to shareholders.”

Simpson Oil has been a Parkland shareholder since 2017 and has grown its shareholding to beneficially own, directly or indirectly, or exercise control or direction over, approximately 14.4 million Parkland Shares, representing 9.24 percent of the issued and outstanding Parkland Shares on a non-diluted basis. Following completion of the Share Exchange, Simpson Oil and, if applicable, its affiliates (collectively, the “Simpson Group”) will own approximately 34.4 million Parkland Shares, representing 19.54 percent of the issued and outstanding Parkland Shares on a pro-forma, non-diluted basis.

“We are delighted to expand our ownership in Parkland,” said Sir Kyffin Simpson CBE, and founder of Simpson Oil. “We have tremendous confidence in the Company, its management team and its bright future. We look forward to participating in its continued success as a long-term supportive shareholder with an investment horizon through the next decade and beyond.”

Strategic Rationale
  • Immediately accretive to all Parkland shareholders on a leverage neutral basis
  • 20 million Parkland Shares to be issued at the prevailing share price
  • Share Exchange valuation consistent with the terms of the put and call options (defined below)
  • Supportive shareholder with a long-term investment horizon
  • Simplifies Parkland’s corporate structure and reporting

The Share Exchange is expected to close in 2022, subject to the approval of the Toronto Stock Exchange (”TSX”) and receipt of any other required regulatory approvals. Concurrently with completing the Share Exchange, the put and call options available to Simpson Oil and Parkland, respectively, with respect to the remaining 25 percent of shares of Sol (”put and call options”) shall be terminated.

About Parkland

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward Looking Statement

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “continue”, “strategy”, “focus” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: the completion of the Share Exchange and the timing thereof; expected benefits of the Share Exchange; Simpson Oil’s future expectations for Parkland and its future shareholding position, including its investment horizon of more than a decade; Parkland’s business objectives, projects and plans and the execution and impact thereof; leading customers through the energy transition and helping them lower their environmental impact; Parkland’s strategy centered around organic growth, supply advantage, acquiring prudently and integrating successfully; and Parkland’s focus on developing its existing business, growing and diversifying its retail business and helping commercial customers decarbonize their operations.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: failure to complete the Share Exchange; failure to satisfy the conditions to closing of the Share Exchange, including receiving approval from the TSX and other required regulatory approvals; failure to realize all or any of the anticipated benefits of the Share Exchange; general economic, market and business conditions; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q2 2022 MD&A dated August 4, 2022 and the Q4 2021 MD&A dated March 3, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca.

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Parkland delivers record quarterly results and increases 2022 guidance; announced share exchange for the remaining 25 percent of Sol

  • Q2 2022 Adjusted EBITDA1 of $450 million
  • Q2 2022 Net Earnings of $81 million, or $0.52 per share
  • Q2 2022 Adjusted Earnings1 of $166 million, or $1.07 per share
  • Increases 2022 Adjusted EBITDA Guidance1 to between $1.6 and $1.7 billion
  • Announced agreement to issue 20 million Parkland common shares to consolidate our 100 percent ownership of Sol, our International Segment

CALGARY, AB, Aug. 4, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three and six months ended June 30, 2022.

Q2 2022 Highlights

  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)1 of $450 million, up approximately 40 percent from Q2 2021, underpinned by acquisitions, consistent operating performance and organic growth.
  • Net earnings attributable to Parkland of $81 million, ($0.52 per share, basic), up approximately $145 million ($0.94 per share, basic) from Q2 2021, and Adjusted earnings attributable to Parkland1 of $166 million, ($1.07 per share, basic), up $70 million ($0.43 per share) from Q2 2021.
  • Trailing twelve months (”TTM”) distributable cash flow1 of $748 million ($4.86 per share) and Q2 2022 cash generated from operating activities of $341 million, both broadly in line with Q2 2021.
  • Reduced leverage ratio1 by 0.3x from 3.5x in Q1 2022 to 3.2x.
  • Fuel volumes of approximately 6.4 billion litres, up over 12 percent from Q2 2021, reflecting the strength of our marketing business and the impact of acquisitions.
  • Completed the previously disclosed acquisition of four Eastern Canadian product terminals, extending our supply advantage and positioning us to accelerate our decarbonization strategy.
  • Continued to expand our JOURNIE™ Rewards loyalty program, attracting approximately 300,000 new members for a total of 3.5 million members.

__________________________

1 Specified Financial Measure. See “Specified Financial Measures” section of this news release.

“Our record results demonstrate the resilience of our integrated business model and our ability to grow throughout economic cycles,” said Bob Espey, President and Chief Executive Officer. “The Parkland team continues to serve the needs of our customers, while simultaneously mitigating inflation, driving organic growth and strengthening our financial flexibility.”

“Consistent with our strategy, we continue to thoughtfully integrate acquisitions, capture synergies and reduce our leverage ratio,” added Espey. “Our operational performance year-to-date gives us confidence to increase our 2022 Adjusted EBITDA guidance. We are firmly on track with our ambition for $2 billion run-rate of Adjusted EBITDA by mid-decade.”

Q2 2022 Segment Highlights

  • Canada delivered Adjusted EBITDA1 of $174 million, up 38 percent, from Q2 2021 ($126 million). Performance was underpinned by robust margins and increased fuel volumes as a result of ongoing COVID recovery, the M&M and Crevier acquisitions, and organic growth. Our previously announced acquisition of select Husky branded retail locations is expected to close later this year.
  • International delivered Adjusted EBITDA of $87 million, up 32 percent, from Q2 2021 ($66 million). Performance was underpinned by increased fuel volumes driven by continued recovery in tourism, aviation, and wholesale, acquisitions and synergy capture. Subsequent to the quarter, we completed our previously disclosed acquisition of the Jamaican business of GB Group and announced a share exchange for the remaining 25 percent of Sol Investments SEZC (”Sol”), to consolidate our 100 percent ownership of our International Segment.
  • USA delivered Adjusted EBITDA of $51 million, up 70 percent, from Q2 2021 ($30 million). Performance was underpinned by the impact of prior year acquisitions, synergy capture, organic growth in our commercial and wholesale business and robust margins.
  • Refining delivered Adjusted EBITDA1 of $164 million, up 33 percent, from Q2 2021 ($123 million). Performance was underpinned by strong refining margins, partially offset by a power outage caused by a third party. Composite utilization2 was 88.4 percent (97.4 percent in Q2 2021).

_______________________

2 Non-Financial Measure. See “Non-Financial Measures” section of this news release.

Updated 2022 Guidance

  • Adjusted EBITDA (attributable to Parkland) increased to $1.6 – $1.7 billion (up from previous guidance of $1.5 billion +/- 5 percent).
  • Capital expenditures (attributable to Parkland) are on track for the low-end of our previously guided range of between $425 million and $525 million.

The factors and assumptions which contribute to Parkland’s assessment of the increased 2022 Adjusted EBITDA Guidance are consistent with existing Parkland disclosures and such guidance is subject to risks and uncertainties inherent in Parkland’s business. Readers are directed to the “Risk Factors” section in the Q2 2022 MD&A and Parkland’s Revised Annual Information Form dated March 17, 2022 for a description of such factors, assumptions, risks and uncertainties. All other elements of Parkland’s previous guidance remain unchanged.

Sustainability Leadership

Sustainability is deeply embedded across our business. Notable accomplishments from the second quarter, and year-to-date, include:

  • Reflecting our focus on safety, we more than halved our TTM lost time injury frequency rate2 to 0.12 (Q2 2021: 0.26) and lowered our TTM total recordable injury frequency rate2 to 1.06 (Q2 2021: 1.19).
  • Co-processed over 30 million litres of bio-feedstocks during Q2 2022, and 50 million litres year-to-date. This has the equivalent environmental impact of taking over 24,000 and 40,000 cars off the road, respectively.
  • Announced we are advancing our renewable fuel project, to be over 40 percent funded by the Government of British Columbia (”BC”), to expand our co-processing activity and build BC’s largest renewable diesel complex at our Burnaby Refinery. A Final Investment Decision is expected in the second half of 2023. Should this project advance, the renewable fuels produced will equate to the permanent removal of 700,000, or 25 percent of the passenger vehicles on BC’s roads.
  • Generated $18 million of Total Renewable Adjusted EBITDA1 in Q2 2022.
  • Subsequent to the quarter (July 12, 2022), we published our 2021 Sustainability Report. In addition to highlighting our accomplishments, the timing of this report sets a new annual cadence for publishing future sustainability reports which more closely aligns with our annual reporting calendar. To read the 2021 Sustainability Report, please visit: https://www.parkland.ca/en/sustainability/overview

Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended June 30,

Financial Summary

2022

2021(7)

Fuel and petroleum product volume (million litres)

6,440

5,746

Sales and operating revenue(2)(7)

9,715

4,974

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(4)

450

322

Canada(2)(3)(4)

174

126

International

87

66

USA(1)(3)

51

30

Refining(1)(2)(3)(4)

164

123

Corporate(3)

(26)

(23)

Net earnings (loss) attributable to Parkland(7)

81

(64)

Net earnings (loss) per share – basic ($ per share)(7)

0.52

(0.42)

Net earnings (loss) per share – diluted ($ per share)(7)

0.52

(0.42)

Adjusted earnings (loss) attributable to Parkland (”Adjusted earnings”)(5)(7)

166

96

Adjusted earnings (loss) per share – basic ($ per share)(5)(7)

1.07

0.64

Adjusted earnings (loss) per share – diluted ($ per share)(5)(7)

1.06

0.64

TTM Distributable cash flow(5)

748

769

TTM Distributable cash flow per share(5)

4.86

5.13

Dividends

51

48

Dividends per share(6)

0.3249

0.3087

Weighted average number of common shares (million shares)

156

151

Total assets

14,047

9,972

Non-current financial liabilities

7,155

4,997

(1)

The supply and trading business in the United States, formerly presented in the Supply segment (now Refining), is now included in the USA segment, reflecting a change in organizational structure in the first six months of 2021.

(2)

Certain amounts within sales and operating revenue, cost of purchases, and marketing, general and administrative were restated and reclassified to conform to the presentation used in the current period. For comparative purposes, information for the second quarter of 2021 ended June 30, 2021 was restated due to a change in segment presentation. The supply, wholesale and logistics businesses, formerly presented in the Supply segment, are now included in the Canada segment, reflecting a change in organizational structure in the first six months of 2022. Following the change, the Supply segment has been renamed to “Refining” as it only includes the results of the Burnaby Refinery. This change better aligns Canada results with those of USA and International, which carry supply businesses within their respective divisions.

(3)

Certain amounts in the comparative period were also restated and reclassified to conform to the presentation used in the current period with respect to the allocation of Corporate costs.

(4)

Total of segments measure. See Section 14 of the Q2 2022 MD&A.

(5)

Non-GAAP financial measure or non-GAAP financial ratio. See Section 14 of the Q2 2022 MD&A.

(6)

Supplementary financial measure. See Section 14 of the Q2 2022 MD&A.

(7)

Certain information in the previous period was restated due to the effects of hyperinflation. Refer to Note 2 of the Interim Condensed Consolidated Financial Statements.

Q2 2022 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, August 5, at 6:30 am MDT (8:30 am EDT) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link:

https://app.webinar.net/8OZXrAXJQa5

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 77903406). International participants may call 1-800-389-0704 (toll free) (Conference ID: 77903406).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

MD&A and Consolidated Financial Statements

The management’s discussion and analysis for the three and six months ended June 30, 2022 (the “Q2 2022 MD&A”) and consolidated financial statements for the three and six months ended June 30, 2022 (the “Q2 2022 Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three and six months ended June 30, 2022. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. The French versions of the Q2 2022 MD&A and Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

About Parkland Corporation

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the essential fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the essential fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business objectives and strategies, the 2022 Adjusted EBITDA Guidance and the 2022 capital expenditure guidance and expectations relating thereto; consolidating 100 percent ownership of Sol and the completion thereof; being on track to achieve its ambition for $2 billion of Adjusted EBITDA by mid-decade; completing the acquisition of select Husky branded retail locations; integrating acquisitions, capturing synergies and reducing leverage ratio; continuing to meet customers’ needs; its ‘Drive to Zero’ strategy and goals with respect thereto; supporting the governments’ goals of achieving net-zero emissions by 2050; expanding its co-processing activity and building BC’s largest renewable diesel complex at the Burnaby Refinery, the completion, funding and timing thereof and the expected benefits relating thereto; future sustainability reports and the timing thereof; and its energy transition strategy and its goals and projects relating thereto.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; Parkland’s ability to execute its business strategies, including without limitation; Parkland’s ability to successfully integrate acquisitions, capture synergies, reduce its leverage ratio, successfully implement organic growth initiatives and to finance such acquisitions and initiatives on reasonable terms; Parkland’s ability to achieve its goals and targets relating to its “Drive to Zero” strategy; Parkland’s ability to complete transactions and projects, including consolidating 100 percent ownership of Sol, the acquisition of select Husky brand retail locations and expanding its co-processing activity and building BC’s largest renewable diesel complex at the Burnaby Refinery; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q2 2022 MD&A dated August 4, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization, TTM lost time injury frequency rate and TTM total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable International Financial Reporting Standards (”IFRS”) measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 14 of the Q2 2022 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and ratios and supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage and liquidity of the business. These specified financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 14 of the Q2 2022 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

Adjusted earnings is a non-GAAP financial measure and Adjusted earnings per share is a non-GAAP financial ratio included in this news release to assist management, investors and analysts with the analysis of the core operating performance of business activities of Parkland on a consolidated level. This non-GAAP financial measure and ratio do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See section 14 of the Q2 2022 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios. See below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share for the three months ended June 30, 2022 and June 30, 2021.

Three months ended June 30,

($ millions, unless otherwise stated)

2022

2021

Net earnings (loss) attributable to Parkland

81

(64)

Add: Net earnings (loss) attributable to NCI

10

4

Net earnings (loss)

91

(60)

Add:

Acquisition, integration and other costs

18

11

Loss on modification of long-term debt

2

35

(Gain) loss on foreign exchange – unrealized

(6)

(1)

(Gain) loss on risk management and other – unrealized

20

18

Other (gains) and losses(1)

60

120

Other adjusting items(2)

4

5

Tax normalization(3)

(12)

(22)

Adjusted earnings (loss) including NCI

177

106

Less: Adjusted earnings (loss) attributable to NCI

11

10

Adjusted earnings (loss)

166

96

Weighted average number of common shares (million shares)(4)

156

151

Weighted average number of common shares adjusted for the effects of dilution (million shares)(3)

157

151

Adjusted earnings (loss) per share ($ per share)

Basic

1.07

0.64

Diluted

1.06

0.64

(1)

Other (gains) and losses for the three months ended June 30, 2022 include the following: (i) $44 million non-cash valuation loss (2021 – $80 million loss) due to the change in redemption value of Sol Put Option; (ii) $16 million non-cash valuation loss (2021 – $31 million loss) due to the change in fair value of redemption options; and (iii) nil gain (2021 – $9 million gain) in Other items. Refer to Note 12 of the Interim Condensed Consolidated Financial Statements.

(2)

Other Adjusting Items for the three months ended June 30, 2022 mainly includes the share of depreciation and income taxes for the Isla joint venture of $3 million (2021 – nil).

(3)

The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as gains and losses on asset disposals, acquisition, integration and other costs, unrealized foreign exchange gains and losses, gains and losses on risk management and other, changes in fair value of redemption options, changes in estimates of environmental provisions, and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.

(4)

Weighted average number of common shares are calculated in accordance with Parkland’s accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.

TTM distributable cash flow is a non-GAAP financial measure and TTM distributable cash flow per share is a non-GAAP ratio. TTM distributable cash flow is a cash metric that adjusts for the impact of seasonality in Parkland’s business by removing non-cash working capital items and excludes the effect of items that are not considered representative of Parkland’s ability to generate cash flows. Such items include: (i) acquisition, integration, and other costs; (ii) turnaround maintenance capital expenditures, and; (iii) interest on leases and long-term debt, and principal payments on leases attributable to non-controlling interests. Distributable cash flow does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Parkland uses this non-GAAP financial measure to monitor normalized cash flows of the business by eliminating the impact of Parkland’s working capital fluctuations and expenditures used in acquisition, integration and other activities, which can vary significantly from quarter-to-quarter.

Three months ended

Trailing
twelve
months
ended
June 30,
2022

($ millions, unless otherwise noted)

September
30, 2021

December
31, 2021

March 31,
2022

June 30,
2022

Cash generated from (used in) operating activities(1)

200

118

(48)

341

611

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(26)

(22)

(26)

(27)

(101)

174

96

(74)

314

510

Reverse: Change in other liabilities and other assets(2)

4

8

(2)

(1)

9

Reverse: Net change in non-cash working capital(2)

119

148

436

36

739

Include: Maintenance capital expenditures attributable to Parkland

(40)

(112)

(29)

(44)

(225)

Exclude: Turnaround maintenance capital expenditures

3

8

11

Include: Proceeds on asset disposals

4

4

1

2

11

Reverse: Acquisition, integration and other costs

12

24

13

18

67

Include: Interest on leases and long-term debt

(56)

(59)

(64)

(69)

(248)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

1

1

4

Include: Payments on principal amount on leases

(36)

(38)

(37)

(38)

(149)

Exclude: Payments on principal amount on leases attributable to NCI

5

5

5

4

19

Distributable cash flow(3)

190

85

250

223

748

Weighted average number of common shares (million shares)

154

Distributable cash flow per share

4.86

Dividends(1)

48

47

49

51

195

Dividend payout ratio(3)

26 %

(1)

Supplementary financial measure. Refer to Section 14C of the Q2 2022 MD&A.

(2)

For comparative purposes, information for the quarter ended September 30, 2021 was restated due to a change in presentation for certain emission credits and allowances held for trading, which were formerly included in “Risk management and other” and are now included in “Inventories”.

(3)

Prior to March 31, 2021, distributable cash flow and the dividend payout ratio were referred to as adjusted distributable cash flow and adjusted dividend payout ratio, respectively. The previous measures were consolidated to a single primary measure representing Parkland’s ability to generate cash flows.

Three months ended

Trailing
twelve
months
ended
June 30,
2021

($ millions, unless otherwise noted)

September
30, 2020

December
31, 2020

March 31,
2021

June 30,
2021

Cash generated from (used in) operating activities(1)(2)

253

(40)

264

322

799

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(24)

(20)

(23)

(21)

(88)

229

(60)

241

301

711

Reverse: Change in other liabilities, other assets and other instruments

27

12

(14)

(9)

16

Reverse: Net change in non-cash working capital

89

288

53

22

452

Include: Maintenance capital expenditures attributable to Parkland

(18)

(39)

(20)

(45)

(122)

Exclude: Turnaround maintenance capital expenditures

1

2

3

Include: Proceeds on asset disposals

2

6

5

1

14

Reverse: Acquisition, integration and other costs

9

14

5

11

39

Include: Interest on leases and long-term debt

(59)

(56)

(54)

(54)

(223)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

1

1

4

Include: Payments on principal amount on leases

(40)

(35)

(35)

(33)

(143)

Exclude: Payments on principal amount on leases attributable to NCI

6

4

4

4

18

Distributable cash flow(3)

247

137

186

199

769

Weighted average number of common shares (million shares)

150

Distributable cash flow per share

5.13

Dividends(2)

47

47

47

48

189

Dividend payout ratio(3)

25 %

(1)

For comparative purposes, information for previous periods was restated due to a change in presentation of cash flows from (used in) operating and financing activities. Interest paid on long-term debt and leases, formerly included in “Cash generated from (used in) operating activities”, is now included in “Cash generated from (used in) financing activities”, reflecting a more relevant presentation of finance costs payments.

(2)

Supplementary financial measure. Refer to Section 14C of the Q2 2022 MD&A.

(3)

Prior to March 31, 2021, distributable cash flow and the dividend payout ratio were referred to as adjusted distributable cash flow and adjusted dividend payout ratio, respectively. The previous measures were consolidated to a single primary measure representing Parkland’s ability to generate cash flows.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including dividends per share, TTM dividends and TTM cash generated from (used in) operating activities, to evaluate the success of our strategic objectives and to set variable compensation targets for employees. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 14 of the Q2 2022 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA and does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies. See Section 14 of the Q2 2022 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. Adjusted EBITDA for the Canada and Refining segments and Total Renewable Adjusted EBITDA (being a summation of Canada and Refining segment renewable subsegments) are also total of segments measures. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 14 of the Q2 2022 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months ended June 30, 2022 and June 30, 2021.

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment Eliminations(3)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total
Conventional

Sub-segment(4)

For the three months ended June 30,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Fuel and petroleum product volume (million litres)(1)

161

154

2,983

2,868

3,144

3,022

913

879

913

879

161

154

3,896

3,747

1,578

1,202

1,547

1,337

(742)

(694)

6,440

5,746

Sales and operating revenue

262

166

4,664

2,646

4,926

2,812

120

56

1,212

674

1,332

730

382

222

5,876

3,320

2,312

1,036

2,527

1,184

(1,084)

(566)

10,013

5,196

Sub-segment eliminations(2)

(262)

(166)

(36)

(56)

(298)

(222)

Sales and operating revenue – after eliminations

4,664

2,646

1,296

674

2,312

1,036

2,527

1,184

(1,084)

(566)

9,715

4,974

Cost of purchases

253

157

4,288

2,372

4,541

2,529

105

56

936

488

1,041

544

358

213

5,224

2,860

2,044

881

2,317

1,080

(1,084)

(566)

8,859

4,468

Sub-segment eliminations(2)

(262)

(166)

(36)

(56)

(298)

(222)

Cost of purchases – after eliminations

4,279

2,363

1,005

488

2,044

881

2,317

1,080

(1,084)

(566)

8,561

4,246

Fuel and petroleum product adjusted gross margin, before the following:

9

9

297

221

306

230

15

274

184

289

184

24

9

571

405

245

138

150

62

990

614

Gain (loss) on risk management and other – realized

(2)

(6)

(8)

2

(49)

(7)

(47)

(7)

(55)

(7)

(103)

(18)

(39)

(8)

(197)

(33)

Gain (loss) on foreign exchange – realized

(9)

2

(9)

2

(9)

2

(2)

(1)

(10)

Other adjusting items to adjusted gross margin

4

2

2

4

Fuel and petroleum product adjusted gross margin

7

9

291

221

298

230

17

216

179

233

179

24

9

507

400

142

122

111

54

1

785

585

Food, convenience and other adjusted gross margin

79

53

79

53

2

2

2

2

81

55

23

17

60

42

164

114

Total adjusted gross margin

7

9

370

274

377

283

17

218

181

235

181

24

9

588

455

165

139

171

96

1

949

699

Operating costs

2

1

149

120

151

121

3

2

64

52

67

54

5

3

213

172

36

35

91

53

345

263

Marketing, general and administrative

1

51

36

52

36

4

4

4

4

1

55

40

22

19

29

13

27

23

134

95

Share in (earnings) loss of associates and joint ventures

(6)

(2)

(6)

(2)

Other adjusting items to Adjusted EBITDA

(2)

(1)

(2)

(1)

Adjusted EBITDA including NCI

4

8

170

118

174

126

14

(2)

150

125

164

123

18

6

320

243

115

88

51

30

(26)

(23)

478

344

Attributable to NCI

28

22

28

22

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

4

8

170

118

174

126

14

(2)

150

125

164

123

18

6

320

243

87

66

51

30

(26)

(23)

450

322

Add: Adjusted EBITDA attributable to NCI

28

22

Less:

Acquisition, integration and other costs

18

11

Depreciation and amortization

174

154

Finance costs

80

93

(Gain) loss on foreign exchange – unrealized

(6)

(1)

(Gain) loss on risk management and other – unrealized

20

18

Other (gains) and losses

60

120

Other adjusting items

4

5

Income tax expense (recovery)

37

4

Net earnings (loss)

91

(60)

Less: Net earnings (loss) attributable to NCI

10

4

Net earnings (loss) attributable to Parkland

81

(64)

(1)

Fuel and petroleum product volume for renewable activities only includes fuel trading volumes and does not include volumes of low-carbon-intensity feedstocks used for co-processing and blending.

(2)

Represents elimination of transactions between Renewable and Conventional sub-segments within Canada and Refining.

(3)

Includes inter-segment sales and cost of purchases. See Note 13 of the Interim Condensed Consolidated Financial Statements.

(4)

Total of Conventional sub-segment is not a financial measure used by Parkland to evaluate performance and is not a Total of segment measure under NI 52-112. It is included in the table above for reconciliation purposes only.

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Parkland Announces Date of 2022 Second Quarter Results

CALGARY, AB, July 21, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2022 second quarter results after markets close on Thursday, August 4, 2022. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Friday, August 5, 2022, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/8OZXrAXJQa5

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 77903406). International participants may call 1-800-389-0704 (toll free) (Conference ID: 77903406).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and www.sedar.com after the results are released.

About Parkland

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region, and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland releases 2021 Sustainability Report and continues its ‘Drive to Zero’

CALGARY, AB, July 12, 2022 /PRNewswire-HISPANIC PR WIRE/ — Today, Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) released its 2021 Sustainability Report (the “2021 Report”). The 2021 Report highlights our progress on our Drive to Zero, including our goals of achieving zero safety incidents and spills, upholding zero tolerance for racism, discrimination, corruption, bribery, and unethical behaviour, and supporting our governments’ goals of achieving net-zero emissions by 2050.

2021 was a landmark year for Parkland in which we formalized our enterprise-wide sustainability strategy. This marked a step change in how our organization is approaching key strategic Environmental, Social, and Governance (ESG) issues and established baselines and set targets upon which we can continuously improve.

“When we launched our enterprise-wide sustainability strategy last year, we set ambitious and measurable targets to help ensure long-term success,” said Christy Elliott, Chief Sustainability Officer. “Our pillars of People, Environment, Partners, and Responsible Growth are the foundation that allows us to continuously improve and expand our sustainability practices. We are excited to share the work we’ve done over the past several months as we continue to Drive to Zero.”

Key highlights from the 2021 Report include:

  • Continued to strengthen our safety culture and delivered strong performance with 2021 Total Recordable Injury Frequency of 1.14. This represents an almost 55 percent improvement since 2017.
  • In 2021, we co-processed a record 86 million litres of bio-feedstocks at our Burnaby Refinery. This had the equivalent environmental effect of taking over 70,000 cars off the road.

With our 2021 Report, we have set a new annual cadence for publishing future sustainability reports which more closely aligns with our annual reporting calendar.

For an overview of Parkland’s sustainability efforts and to read the 2021 Report, visit: https://www.parkland.ca/en/sustainability/overview

About Parkland
Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region, and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centred around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements & Note on Specified Financial Measures
Certain statements contained herein constitute forward-looking information and statements (collectively, “forward-looking statements”). When used the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements with respect to among other things:  Parkland’s business, objectives and strategies, including Parkland’s enterprise-wide sustainability strategy and its goals, targets and plans relating thereto, including without limitation, Parkland’s ‘Drive to Zero’ and supporting our governments’ goal of achieving net-zero emissions by 2050; Parkland publishing sustainability reports in the future and the frequency, timing and release thereof; and Parkland’s energy transition strategy, including with respect to developing, diversifying and decarbonizing its business, and its goals and plans with respect thereto.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. These forward-looking statements speak only as of the date of this presentation. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; Parkland’s ability to execute its business strategies, including with respect to sustainability and energy transition; Parkland’s ability to achieve its goals and targets relating to its sustainability and energy transition strategies; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022 and in “Forward-Looking Information” and “Risk Factors” included in the Q1 2022 Management’s Discussion and Analysis dated May 4, 2022, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

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Parkland announces plans to expand co-processing activities and build British Columbia’s largest renewable diesel complex

The environmental effect of the renewable fuels produced will equate to the permanent removal of approximately 700,000 or 25 per cent of the passenger vehicles on British Columbia’s roads

CALGARY, AB, May 9, 2022 /PRNewswire-HISPANIC PR WIRE/ – Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) announced plans to increase renewable fuel production at its Burnaby Refinery in British Columbia. This is one of many steps we are taking to advance our commercial decarbonization strategy and provide our customers with a portfolio of low carbon products and services to help them meet their low carbon goals. Today’s announced plans include:

  • building on our track record of innovation and leadership, by expanding our existing co-processing volumes to approximately 5,500 barrels per day, and
  • building a stand-alone renewable diesel complex, within the Burnaby Refinery capable of producing approximately 6,500 barrels per day of renewable diesel.

Renewable fuels produced through these plans will have one eighth of the carbon intensity of conventional fuels. They will reduce related greenhouse gas emissions by approximately 2 megatonnes per year. In addition, Parkland is designing the stand-alone renewable diesel complex to ensure it does not increase emissions from the Burnaby Refinery. Today’s announcement follows collaboration with the Government of British Columbia (”BC”) and supports the Government’s ambition to achieve net-zero emissions by 2050.

We currently estimate that these projects will require an investment of approximately $600 million, with the majority of capital investment expected to be deployed in 2024 and 2025. Parkland has received BC Government support for over 40 per cent of the project costs in the form of BC Low-Carbon Fuel Standard Compliance Credits.

“I applaud the Government of British Columbia for their vision and support of these innovative projects,” said Bob Espey, President & Chief Executive Officer. “This announcement advances our decarbonization strategy and our commitment to provide customers with low carbon choices which help them meet their environmental goals. Renewable fuels play a critical role in Canada’s climate ambitions by enabling customers to reduce their carbon footprint using their existing vehicle.”

“Parkland’s plans to increase our province’s renewable fuel capabilities support our Clean BC targets,” said The Hon. Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “This is a big step forward in our transition to a lower-carbon economy. Harnessing Parkland’s technical expertise and infrastructure to lower the environmental impact of our transportation is something we can be proud of. When combined with BC’s other sources of renewable power and efforts to electrify the passenger vehicle fleet, we continue to set the bar for Canada.”

These plans will have a positive impact on employment in British Columbia and are expected to directly create up to 1,000 high-quality, family sustaining jobs during the construction phase. Following stakeholder consultation, we aim to make a final investment decision in the second half of 2023, with production expected to commence in 2026. We are currently assessing the feasibility and availability of financial support to produce Sustainable Aviation Fuel (”SAF”) as part of these plans, in support of decarbonizing Canada’s aviation sector.

About Parkland

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward Looking Statement

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements“). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives and strategies; plans to expand our co-processing capability to approximately 5,500 barrels per day; plans to build British Columbia’s largest renewable diesel complex capable of producing approximately 6,500 barrels per day of renewable diesel; the environmental effects of the renewable fuels produced through these plans, including equating to removing approximately 700,000 or 25 per cent of the passenger vehicles on British Columbia’s roads, having one eighth of the carbon-intensity of conventional fuels, reducing related greenhouse gas emissions by approximately 2 megatonnes per year and ensuring Parkland does not increase emissions from the Burnaby Refinery; the estimated required investment for these projects and the timing of the deployment thereof; the impact of these plans on the Government’s ambition to achieve net-zero emissions by 2050 and Clean BC targets; the impact of these plans on employment and job opportunities in British Columbia; details with respect to stakeholder consultation and making a final investment decision, including the timing thereof, and expected timing of commencing production; and Parkland’s commercial decarbonization strategy and its commitment to provide customers with low carbon choices.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: ability to execute and realize all or any of the anticipated benefits of expanding its co-processing activities and building a stand-alone renewable diesel complex; ability to fund these projects; the receipt of necessary approvals and support by third parties; general economic, market and business conditions; competitive action by other companies; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q1 2022 MD&A dated May 4, 2022 and the Q4 MD&A dated March 3, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Parkland Corporation Announces the Results of the 2022 Annual General Meeting of Shareholders

CALGARY, AB, May 6, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation, (”Parkland”, “We”, the “Company”, or “Our”) (TSX: PKI) held its annual general meeting of shareholders on May 5, 2022 (the “Meeting”).

Parkland Logo (CNW Group/Parkland Corporation)

The Company is pleased to announce that all ten of the nominees listed in its management information circular dated March 25, 2022 (the “Information Circular”) were elected as directors of the Corporation and PricewaterhouseCoopers LLP, Chartered Accountants, was reappointed as Parkland’s auditor at the Meeting.

The results of these votes, as well as the results for the other items of business considered at the Meeting, are set out below:

Resolution 1

Election of directors of Parkland for the ensuing year.

Nominee

Votes For

%For

Votes Withheld

%Withheld

John F. Bechtold

69,559,297

98.29%

1,213,403

1.71%

Lisa Colnett

68,708,391

97.08%

2,064,309

2.92%

Robert Espey

70,638,802

99.81%

133,898

0.19%

Tim W. Hogarth

68,645,703

96.99%

2,126,997

3.01%

Richard Hookway

69,628,364

98.38%

1,144,336

1.62%

Angela John

70,628,630

99.80%

144,070

0.20%

Jim Pantelidis

68,409,931

96.66%

2,362,769

3.34%

Steven Richardson

67,676,971

95.63%

3,095,729

4.37%

David A. Spencer

63,034,974

89.07%

7,737,726

10.93%

Deborah Stein

67,910,704

95.96%

2,861,996

4.04%

Resolution 2

The reappointment of PricewaterhouseCoopers LLP, Chartered Accountants, as auditor of Parkland for the fiscal year ending December 31, 2022.

Votes For

70,545,377

99.24%

Votes Withheld

537,255

0.76%

Resolution 3

The approval, on a non-binding and advisory basis, of Parkland’s approach to executive compensation as more particularly set forth and described in the Information Circular.

Votes For

62,564,610

88.40%

Votes Against

8,208,090

11.60%

Voting results for all matters have been posted on SEDAR.

About Parkland Corporation

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the essential fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the essential fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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