Parkland Corporation released its financial and operating results for the fourth quarter and year end 2024, and said its Board of Directors “has initiated a review of strategic alternatives to identify opportunities to maximize value for all shareholders,” according to the report.
Parkland said the strategic review will be led by a special committee of the board which is comprised solely of independent directors. During the process, the company will “analyze and evaluate its business strategy and optimization opportunities, while also considering value maximization alternatives which are in the best interests of all shareholders. This may include, but is not limited to, asset divestments, acquisitions, transformative business combinations and a sale of the company. Parkland has engaged Goldman Sachs Canada Inc. and BofA Securities as its financial advisors for the Strategic Review,” it said.
“While we are confident in the tremendous value-creating potential of our business, strategic plan and management’s ability to execute, the current share price does not fully reflect the intrinsic value of the company. As a result, our board believes the strategic review is a necessary step to explore opportunities to maximize value creation for all shareholders,” said Michael Jennings, chair of Parkland’s board of directors.
Parkland cautioned that there are “no guarantees that the strategic review process will result in a transaction or if a transaction is undertaken, as to its terms or timing.”
Parkland reported net earnings of $127 million, compared to $471 million in 2023; adjusted earnings of $405 million compared to $626 million in 2023; and available cash flow of $556 million compared to $812 million in 2023. These decreases were “largely due to lower refinery segment results, restructuring activities and the ongoing implementation of enterprise-wide systems designed to improve operational efficiency, provide long-term cost savings and support future growth.”
"In 2024, our combined retail and commercial businesses demonstrated resilience in a challenging environment. While the refinery and U.S.A. segments fell short of our expectations, partly due to unfavorable external market factors, our continued focus on operational excellence and serving our customers, combined with higher expected composite utilization of the Burnaby refinery, gives me confidence in our 2025 guidance," said Bob Espey, president and chief executive officer.
In September 2024, Parkland announced that it was initiating a process to divest its Florida-based retail and commercial businesses. Parkland’s Florida business contained approximately 100 retail locations, nine cardlock facilities and four bulk storage plants and warehouses.