Parkland (PKI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 Adjusted EBITDA of $504 million, up 7% year-over-year, demonstrating resilience and operational strength despite challenging market conditions.

• Net earnings for Q2 2024 were $70 million, down from $78 million in Q2 2023, while Adjusted earnings rose to $156 million, up 20% year-over-year.

• Strategic focus on market share growth, customer experience, organic growth, and platform optimization.

• Integration and synergy capture from recent acquisitions progressing well.

• Board leadership transition: Michael Jennings appointed Chair, replacing Steve Richardson.

Financial highlights

• Q2 2024 Adjusted EBITDA: $504 million, up from $470 million in Q2 2023.

• Canada Adjusted EBITDA: $172 million, up 15% year-over-year; International: $182 million, up 8%; USA: $49 million, down 34% year-over-year.

• Refinery Adjusted EBITDA: $121 million, up from $109 million, with utilization at 98% and record co-processing volumes.

• Available cash flow (TTM): $831 million ($4.75/share), up over 50% from prior year.

• Sales and operating revenue for Q2 2024 was $7,504 million, down from $7,819 million in Q2 2023.

Outlook and guidance

• 2024 Adjusted EBITDA guidance revised to $1,900–$2,000 million, reflecting refinery outage and market headwinds.

• High refinery utilization expected for the remainder of the year; refining margins now in line with mid-cycle assumptions.

• Focus on cost efficiencies, capital discipline, and value creation for shareholders.

• Confident in achieving 2028 targets for leverage, Adjusted EBITDA, and cash flow per share.

• Plans to grow co-processing at Burnaby Refinery to 7,500 barrels/day by 2028 as part of sustainability initiatives.