RED DEER, AB, Dec. 31 /CNW/ - Parkland Income Fund ("Parkland" or the "Fund") (TSX: PKI.UN), Canada's largest independent fuel distributer and marketer, today announced that, as expected, Suncor Energy Inc. ("Suncor") has issued notice to terminate its current supply contract with Parkland on December 31, 2013. Parkland currently purchases approximately one billion litres of fuel from Suncor annually under this agreement, which is priced using a formula by which Parkland shares in a portion of the refinery margins.
"Since 2005, Parkland has aggressively pursued a strategy to build up its retail and commercial fuel sales and marketing business in an effort to become less reliant on refiners' margins for earnings," said Mike Chorlton, President and Chief Executive Officer of Parkland. "The fact that Parkland has been able to maintain monthly distributions through six quarters of disappointing returns from refiners' margins demonstrates our success in shifting earnings to the fuel marketing side of the business."
Suncor currently accounts for less than a third of Parkland's total fuel supply, and the Fund is continually negotiating new supply agreements for its supply portfolio. In anticipation of receiving Suncor's notice of termination, Parkland has already started developing alternate supply options and related facilities to economically replace the fuel supply contract with Suncor. Parkland does not anticipate any issues with replacing the supply contract for 2014.
Cautionary Statement Regarding Forward-Looking Information and Statements
Certain statements contained in this news release, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "propose", "plan", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statements").
In particular, this news release contains forward-looking information and statements relating to the expectations of the Fund and the administrator of the Fund regarding the proposed Arrangement including, but not limited to the timing of completion thereof.
These forward-looking information and statements are based on certain assumptions and analysis made by the Fund in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Fund's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Fund's expectations. Such risks and uncertainties include, but are not limited to, failure to complete the Arrangement or to realize the anticipated benefits of the Arrangement. Consequently, all of the forward-looking information and statements made in this news release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Fund will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Fund or its business or operations. Readers are therefore cautioned not to place undue reliance on such forward-looking information and statements. Except as may be required by law, the Fund assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events or otherwise.
About Parkland Income Fund
Parkland Income Fund ("Parkland") is Canada's largest independent marketer and distributer of fuels, managing a nationwide network of sales channels for retail, commercial, wholesale and home heating fuel customers. Parkland's mission is to be the most trusted source of convenience for fuel and related products focused on non-urban markets. Our family of brands includes: Bluewave Energy, Columbia Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United Petroleum Products, Fas Gas Plus and Race Trac Gas. We are Canada's local fuel company, delivering competitive fuel products and serving Canadian communities through local operators who care. For more information please visit www.parkland.ca.
Parkland units and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols PKI.UN, PKI.DB and PKI.DB.A.
For further information: For further information: For investor and media inquiries, or to be added to the email news alert service, please contact Tom McMillan, Investor Relations Manager at 403-356-6722 or [email protected]