CALGARY — Floods in B.C. and the temporary shutdown of the Trans Mountain pipeline in the fourth quarter of 2021 cost Parkland Corp. approximately $35 million.
The Calgary-based fuel marketer and convenience store retailer made the the figure public Friday, as part of its fourth-quarter results.
On a conference call with analysts, chief executive Bob Espey said Parkland would have delivered record earnings for the full-year 2021 if not for the weather-related shutdown of Trans Mountain in November and the resulting pause in operations at Parkland's Burnaby refinery.
Instead, Parkland said it earned $23 million or 15 cents per diluted share for the quarter ended Dec. 31, down from $53 million or 35 cents per diluted share a year earlier.
But Espey said he is proud of the way Parkland employees stepped up during the B.C. disaster.
"In British Columbia, we ensured our customers and communities had reliable access to food, fuel and convenience items they depend on throughout a major flood event," he said.
The Trans Mountain pipeline was shut down for three weeks while crews assessed damage and made necessary repairs in the aftermath of the flooding.
The 1,150-km pipeline carries 300,000 barrels per day of petroleum products from Alberta to B.C. During the shutdown, Parkland paused its refinery processing operations in Burnaby, B.C., due to a lack of crude oil supply from Trans Mountain.
The Burnaby refinery is a key supplier of gasoline to the Vancouver area. While its processing operations were paused, Parkland imported fuel into Burnaby, then stored and transported it to retail and commercial locations by truck and barge.
Also on Friday, Parkland Corp. increased its annual dividend to $1.30 per share compared with $1.235 per share and said that starting in the second quarter it will switch to a quarterly payment schedule from monthly payments.
Parkland's fourth-quarter sales and operating revenue totalled $6.29 billion, up from $3.51 billion in the fourth quarter of 2020.
On an adjusted basis, Parkland says it earned 36 cents per diluted share in its most recent quarter, up from an adjusted profit of 28 cents per diluted share a year earlier.
In January, Parkland signed a deal to buy frozen food retailer M&M Food Market for $322 million.
This report by The Canadian Press was first published March 4, 2022.
Companies in this story: (TSX:PKI)
Amanda Stephenson, The Canadian Press
