Have a $57.00 target. GLTA
PARKLAND CORPORATION Burnaby Refinery Temporarily Shut Down Due To Weather But
2024 Guidance Unchanged
PKI announced that it has temporarily shut down processing operations at
the Burnaby Refinery. Due to recent extreme cold weather, the company
proactively initiated steps to pause processing operations at the refinery.
While restarting, PKI encountered an issue with a processing unit on January
21, 2024. As a result, it has paused the restart and the refinery's processing
operations remain temporarily shut down. PKI expects the refinery will return
to normal operations in approximately four weeks. Key points to note:
1. PKI will still be able to reliability supply its network in BC. PKI has
increased imports of refined products into its on-site shipping terminal.
The refinery's blending, shipping, terminal, and rack activities remain
operational. This enables refined fuels to be offloaded from ships and rail
directly into the refinery, where they can be safely stored and reliably
distributed to customers.
2. PKI had planned a mini turnaround in February. The company will
complete this maintenance work during the downtime, which helps
partially offset this unexpected shutdown at the refinery. In total we
expect the refinery to be down five to six weeks.
3. There is no change in PKI’s 2024 EBITDA guidance, which remains
achieving an adj. EBITDA of $2B +/- $50MM, capex of $475MM-
$525MM, available cash flow per share of $5.00, and ROIC of 11+%.
While this refinery shutdown was unexpected, the company has typically
been conservative in its outlook