Global refinery market weakness hits Parkland Corp.’s Burnaby refinery
Posted October 31, 2024 6:28 am.
Last Updated October 31, 2024 10:39 am.
Fuel retailer Parkland Corp. lowered its full-year earnings forecast Thursday, as sluggish market conditions continue to take a bite out of margins at the company’s Burnaby refinery.
The Calgary-headquartered company is experiencing similar challenges to refiners worldwide, as the industry deals with a glut of fuel supply and weak global economic conditions that have reduced demand.
Some U.S. refiners have announced plans to temporarily curb their output as a result of the weak market conditions.
Parkland said Wednesday after the close of markets that it is lowering its full-year 2024 adjusted earnings guidance to between $1.7 and $1.75 billion, down from a previous forecast of between $1.9 and $2.0 billion.
CEO Bob Espey said on a conference call Thursday he expects the challenging refinery market conditions to persist through the remainder of the year.
For the third quarter, Parkland reported its earnings declined by 60 per cent year-over-year, from $230 million in 2023 to $91 million in the third quarter of 2024.
This report by The Canadian Press was first published Oct. 31, 2024.
Companies in this story: (TSX:PKI)
