RE:RE:RE:RE:A Rundown Residential Shack Probably Cost Over A MillionThen applying your method of thinking, CVE is over valued.... EVs taken over and that's why retail station sold for so cheap comparatively.... this would in turn suggest CVE whole operations is over valued, as gasoline station going obsolete....which inturn means basically CVE going obsolete.
Then you decide to leave out real estate price factor and inflation.
What an idiot.....
Maybe the price was fair...... but that still will make mrbb an idiot for leaving out real estate price factor and inflation.
2016..... Oil sector in the dumps, gasoline price at the pumps way down, outlook for oil prices negative.... IMO sells for over $5M for each.
2021.... Oil sector taking off/rocking up, gasoline prices at all time highs, outlook for oil prices positive, some even calling for $200 oil..... CVE sells for just over $1M for each.
Like I said.... people can make up all kinds of S@#T.... even leaving out real estate prices and inflation.....
And the Sheeps gives him a thumbs up...LOL
All just my opinion/view/thinking/LOL
mrbb wrote: back in 2016, EV wasn't even in our vocabulary. Husky had try to unload the gas stations since early 2019. I agree it is a mistake for husky to not sell them earlier, however, the business of selling petrol, car wash, and convenience store was atrrative. Selling for cheap is still better than not able to sell them at all. There aren't many buyers out there now. 7-11 and Couche-Tard already bought.. Regulation and reclamation cost gets worse each years. Volume is declining too given higher gas prices and EV adoption. Ragingrabies thinks high petrol prices equates higher profit margin and higher volume, reality is the opposite, what a noob he is. Looking back, i can say 7-11 and counche-tard over paid IMO gas stations as a retail business, assuming we leave out the real estate price factor. In hindsight, paying $5 to $6 million per gas station that make pennies/liter margin plus slowly declining volume does not make business sense today.
Quick analysis
if i assume the top range sales of gas of 5.2 billion $/month and a retail margin of 1.7%, that's 88.4 mil$ retail profit from 11,908 canadian gas stations or $7423/mth or 89,000 $/yr revenue per gas station in canada. After paying property tax, labor, utiility, the owner is lucky to net out 50k/year.
At $1.25 Million each gas station, it would take 25+ years to pay off the investment. No doubt Parkland and Federated Coop are betting on real estate prices going up too because it is a bad investment just banking of selling petrol. IMO is laughing now knowing they got $5-6 million for each of their gas station
data source:
• Gasoline stations monthly sales Canada 2021 | Statista
Why Gas Station Profits Are Drying Up | Inc.com
Fuel Retailing - Canadian Fuels Association
autofocus111 wrote: That said, CVE got a lot less per station than IMO got a few years ago. I'd guess that the difference in selling price was related to the quailty of the real estate locations and the customer revenue generation at the sites. I had hoped to see better results on the sale, but it is what it is.
>>>CALGARY -- Imperial Oil says it has reached deals to sell its remaining 497 Esso retail stations in Canada to five fuel distributors for a total of $2.8 billion. Alimentation Couche-Tard Inc. is set to buy 279 stations in Ontario and Quebec for nearly $1.69 billion. Meanwhile, 7-Eleven Canada Inc. is buying 148 stations in Alberta and British Columbia, Harnois Groupe petrolier buying 3
https://www.ctvnews.ca/business/esso-stations-to-be-sold-in-deals-worth-2-8b-1.2809686