Member Report 2018 - Petroleum | UFA Co-operative Ltd.

Member Report 2018 - Petroleum

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“UFA’S PETROLEUM BUSINESS DELIVERED A STRONG YEAR IN 2018 THANKS TO STRATEGIC PARTNERSHIPS WITH NORTH WEST REFINING AND GROWMARK, WHICH ENABLED OUR CO-OPERATIVE TO STRENGTHEN OUR POSITION AND DELIVER QUALITY PRODUCTS AND SERVICES BACK TO OUR MEMBERS.”

Kevin Hoppins

Board Chair

Carol Kitchen

President & CEO

Fuel distribution lies at the core of UFA’s business and has been an important part of the service we deliver to members and customers since the acquisition of Maple Leaf Petroleum in 1957. 2018 was no exception to this with sales volumes reaching 1.24 billion litres and $138.5 million in gross margin.

In 2018, we made a significant investment in serving our members and customers by introducing Dieselex® Gold, a premium-blended diesel fuel engineered to improve performance and protect the sophisticated fuel systems in today’s modern machinery and equipment. This unique product was introduced at 11 UFA petroleum agencies and has proven to be a success with customers. Five more Dieselex® Gold locations will be operational in early 2019.

In August, our wholly owned subsidiary, Bar W Petroleum & Electric Inc. (Bar W), acquired All Peace Petroleum Ltd. out of Grande Prairie. The purchase enabled our Bar W business to be more competitive in the marketplace, providing customers with improved access to downstream services and mobile tank rentals and sales capabilities when and where they are needed.

To support our members’ need for Diesel Exhaust Fluid (DEF) which helps manage their emissions and improve performance, we expanded our 24/7 ‘on-island’ Cardlock offering of DEF at 30 of our petroleum agencies. In addition, all petroleum agencies and select Farm and Ranch Supply stores now carry various sizes for carry-out convenience.

In 2018, Cardlock and office construction at our Beaverlodge Petroleum Agency was completed, enhancements were made to our Strathmore agency, and a new warehouse was added to our Wainwright location. In October, a new five lane Cardlock opened in Fort Macleod, providing access to DEF dispensers and easy access for large commercial vehicles.

Sales in UFA’s lubricant business increased in 2018, specifically in hydraulic and tractor fluids and transmission and gear oils. These results grew the EBITDA contribution in this sector by 12% to $5.4 million in 2018. In addition to this growth, the petroleum business made significant gains in the road construction and government market sectors through focused sales efforts.

Dieselex® Gold.

Launched.

PREMIUM BLENDED DIESEL FUEL, ENGINEERED TO IMPROVE PERFORMANCE WAS INTRODUCED AT 11 UFA LOCATIONS, WITH MORE PLANNED FOR 2019.

THE CALGARY STAMPEDE.

Fueled.

We became the official fuel supplier of the greatest outdoor show on earth.

All Peace Petroleum.

Acquired.

Improving tank rental and sales capabilities for our members and customers and adding efficiency in downstream petroleum services in the peace region.

24/7 diesel exhaust fluid access.

Now available at 30 UFA cardlock locations.

1 new petroleum agency and cardlock.

Built.

UFA INVESTED IN A NEW AGENCY AND CARDLOCK IN THE FORT MACLEOD COMMUNITY AT A CONVENIENT NEW LOCATION.

2 Cardlocks.

Improved.

UFA IMPROVED ITS BEAVERLODGE AND STRATHMORE PETROLEUM AGENCIES.

Road construction sector.

Grown.

13% volume increase for fuels.
10% volume increase for lubricants.

Petroleum lubricant business.

Grown.

Contribution to EBITDA up 12%.