Dive Brief:
- Par Pacific Holdings’ retail business “continues to shine” after its operating income grew by about 23% in Q2 compared to the same period last year, President and CEO Will Monteleone said during the company’s earnings call on Wednesday.
- The company’s retail segment saw its operating income reach $20.8 million in Q2 compared to $16.1 million in the second quarter of 2024, according to Par Pacific’s latest earnings report. Same-store fuel and in-store revenues also increased by 1.8% and 3%, respectively, compared to the prior year, Monteleone added during the call.
- The growth continues strong momentum for Par Pacific’s retail arm after a fiscal 2024 in which the division’s operating income surged by nearly $10 million.
Dive Insight:
Monteleone noted back in February that strong fuel margins and lower operating costs were a major catalyst for the retail division’s successful 2024. This appears to be a reoccurring trend for Par Pacific, as Monetleone credited the company’s Q2 growth to higher fuel margins and lower operating costs, as well as same-store sales growth.
Par Pacific’s adjusted EBITDA for its retail segment also spiked during Q2, growing from $19 million this time last year to $23 million, according to its earnings report. The company’s retail business includes about 120 convenience and fueling sites across Idaho, Washington and Hawaii that operate under the Hele, Nomnom and 76 banners.
Monteleone emphasized on Wednesday’s call that Par Pacific’s strong retail cash flow “comfortably supports our leverage profile.”
Par Pacific’s retail profitability coincides with the company’s venture into the renewables space. In late July, Par Pacific, alongside Japanese trading and petroleum companies Mitsubishi Corp. and Eneos, agreed to establish a joint venture that will produce renewable fuels at Par Pacific’s refinery in Kapolei, Hawai’i. Mitsubishi and Eneos will form Alohi Renewable Energy, LLC, which will acquire a 36.5% equity stake in the venture, while Par Pacific will retain the remaining interest and lead the project’s execution and operations.
