May 17, 2010 / 12:03 PM / 8 years ago

UPDATE 1-Parkland Income Fund's Q1 earnings dip on lower margins

* Q1 earnings/unit C$0.09 vs C$0.40 yr ago

* Revenue up 49 pct to C$680.3 mln

May 17 (Reuters) - Parkland Income Fund PKI_u.TO, Canada’s largest national independent petroleum distributor, reported lower quarterly earnings, hurt primarily by lower refiners’ margins.

The fund said commercial and industrial fuel sales are showing signs of modest 2010 recovery, on increased activity in the forestry, trucking and oil and gas drilling industries.

For the first quarter ended March 31, net income was C$5.4 million ($5.22 million), or 9 Canadian cents per unit, compared with C$19.8 million, or 40 Canadian cents apiece, a year ago.

Revenue rose 49 percent to C$680.3 million.

Analysts on average were expecting the company to earn 13 Canadian cents per unit on revenue of C$680.1 million, according to Thomson Reuters I/B/E/S.

The fund said discounting by competitors put pressure on retail prices in some markets, hurting its margins on a per litre basis and its involvement with refiners’ margins for a significant part of its supply volumes also impacted earnings.

Parkland said its earnings from this participation were lower by C$16.7 million compared to last year.

Units of the Red Deer, Alberta-based company closed at C$11.40 Friday on the Toronto Stock Exchange. ($1=1.035 Canadian Dollar) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Prem Udayabhanu)

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