Parkland’s Plan for Cash Flow Allocation


Parkland, the renowned retailer and fuel distributor, has developed a strategic plan to allocate its expected cash flow in the coming years. A substantial portion of this cash flow will be directed towards shareholder returns and reinforcing its balance sheet, with the remaining amount focused on growth initiatives.

Anticipated Cash Flow

Parkland projects that it will accumulate 6 billion Canadian dollars ($4.3 billion) in available cash flow from 2024 to 2028.

Allocation Breakdown

The company intends to allocate approximately C$1.5 billion to dividends and share buybacks, ensuring that shareholders are rewarded for their investment. Another C$1.5 billion will be set aside for new growth initiatives, consolidating Parkland’s market position and expanding its reach.

Reducing Leverage Ratio and Future Opportunities

Out of the expected C$3 billion in capital, Parkland plans to direct funds towards reducing its leverage ratio by the end of 2025, aiming to reach the low end of its target range of two to three times. From 2025 to 2028, the company will strategically allocate capital to opportunities that generate shareholder returns, potentially including additional share repurchases.

Financial Outlook

Parkland anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of C$2 billion in 2024, with a variance of plus or minus C$50 million. This forecast exceeds the previous target range of C$1.8 billion to C$1.85 billion for 2023.

Looking ahead to 2028, Parkland aims to achieve adjusted EBITDA of C$2.5 billion, with the potential for growth up to C$3 billion as it actively seeks out new opportunities.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Mitsubishi UFJ Financial Group Reports Strong First-Half Results

Next Post

New York Community Bancorp Faces Downgrade Amid Uncertainty in the Rent-Regulated Multifamily Lending Market

Related Posts