CA - Parkland plunges as Q3 earnings seen missing forecast

Parkland Corp. ( OTCPK:PKIUF ) -8% in Wednesday's trading after saying Q3 earnings will come in short of expectations , citing the current macroeconomic environment and volatile product prices.

The Canadian fuel distributor said it sees Q3 adjusted EBITDA of ~C$325M, down from C$364M in the year-earlier quarter, but it is "confident" in its Q4 outlook and expects FY 2022 adjusted EBITDA will finish within guidance of C$1.6B-C$1.7B.

In Q3, Parkland ( OTCPK:PKIUF ) said rapidly declining market prices caused non-recurring wholesale inventory and risk management losses of ~$65M, which more than offset expected contributions from retail and commercial businesses.

In Canada, the company said falling product prices reduced fuel unit margins in Q3 compared to Q2, which partially offset steady retail fuel demand and strong non-fuel margins.

In Q2, Parkland ( OTCPK:PKIUF ) reported GAAP earnings of $0.52/share on revenues of $9.7B .

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