Parkland Fuel profit misses estimates on lower volumes
Feb 26 (Reuters) - Canada's Parkland Fuel Corp, which sells diesel, gasoline and lubricants, reported a quarterly profit below analysts' estimates as a slowdown in oil and gas drilling affected sales volumes.
Shares of the company, which delivers fuels and lubricants to oil and gas, mining and other industries, fell as much as 14 percent to C$16.52 in early trading on Tuesday. They were among the top percentage losers on the Toronto Stock Exchange.
Net earnings rose to C$9.5 million, or 15 Canadian cents per share, in the fourth quarter from C$7.4 million, or 12 Canadian cents per share, a year earlier.
Sales fell 2 percent to C$998.4 million on lower volumes.
Analysts on average had expected earnings of 36 Canadian cents per share on revenue of C$1.08 billion, according to Thomson Reuters I/B/E/S.
Volumes in the company's commercial fuels business, which sells to industries, fell 20 percent to 382 million liters.
The company used derivatives this year to manage its exposure to commodities and took a loss on one of those put options contracts in the fourth quarter, P.I. Financial analyst Jason Zandberg said. (Reporting by Maneesha Tiwari in Bangalore; Editing by Don Sebastian)
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