Parkland Refinery Fully Operational Again After Unplanned January Shutdown

Parkland Corporation ("Parkland") announced today that its Burnaby Refinery ("the refinery") has safely resumed normal operations as of March 29, 2024. This follows an unplanned shutdown caused by severe cold weather on January 12, 2024.

Expressing appreciation for the refinery team's diligent efforts, Bob Espey, President and Chief Executive Officer, remarked, “I would like to extend my gratitude to the refinery team for their unwavering commitment to restoring operations in a safe manner.” Espey further elaborated on the proactive measures undertaken during the shutdown period, highlighting the accelerated maintenance activities and refining optimization endeavors initially slated for the third quarter of 2024. Additionally, proactive initiatives have been implemented to bolster organization-wide marketing profitability and augment the refinery's overall utilization and profitability for the remainder of the year. Espey expressed confidence in the revised operational strategy and reiterated the company's steadfast commitment to maintaining its 2024 Adjusted EBITDA Guidance range of $1.95 billion to $2.05 billion.

In light of the shutdown, Parkland foresees the refinery operating at a composite utilization rate of approximately 20 percent, with an anticipated Adjusted EBITDA loss ranging between $60 million and $65 million for the first quarter of 2024. Nonetheless, Parkland remains optimistic about achieving a total Adjusted EBITDA of between $300 million and $320 million for the first quarter of 2024.

Parkland Corporation is a renowned global distributor, marketer, and convenience retailer specializing in fuel, with operations spanning 26 countries across the Americas. With a focus on meeting the everyday fuel and convenience requirements of consumers, Parkland operates a comprehensive retail network serving over 1 million customers daily. Furthermore, the company's commercial operations extend support to businesses by supplying industrial fuels, enhancing their service offerings to customers.

In addition to fulfilling customers' essential fuel requirements, Parkland is committed to reducing environmental impact through various initiatives. These include sourcing, manufacturing, and blending renewable fuels, participating in carbon and renewables trading, promoting solar power, and offering ultra-fast electric vehicle (EV) charging solutions.

With a vast network comprising approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, Parkland has cultivated robust supply, distribution, and trading capabilities. Leveraging these capabilities strategically, Parkland aims to drive growth and enhance business performance in line with its overarching objectives.

Parkland's strategic approach centers on two key pillars: Customer Advantage and Supply Advantage. Under the Customer Advantage initiative, the company strives to establish itself as the preferred choice of customers by fostering their loyalty through a range of measures. These include leveraging proprietary brands, offering unique and differentiated products, utilizing an extensive network, providing competitive pricing, ensuring reliable service, and implementing an engaging loyalty program.

On the other hand, the Supply Advantage pillar is founded on achieving the most cost-effective service model among independent fuel marketers and distributors, particularly in challenging markets where Parkland operates. This is accomplished through strategically positioned assets, substantial scale, and comprehensive supply and logistics capabilities.