Suncor To Keep Petro-Canada Retail Business
Suncor Energy has decided to retain and improve the Petro-Canada retail business following a comprehensive review. Through this decision, the company will increase its EBITDA contribution and strengthen its integrated refining & marketing business.
This will include continued optimization of the Petro-Canada retail sites across the network as well as the continued expansion of strategic partnerships in non-fuel-related businesses such as quick service restaurants, convenience stores, loyalty partnerships, and energy transition offerings.
"After careful consideration, the board has concluded that retaining and optimizing the company's retail business will generate the highest long-term value for shareholders and therefore, has unanimously decided to retain and continue to optimize the network and expand strategic partnerships for the Petro-Canada retail business that enhance our capabilities and capture increased revenue and cash flow opportunities," said Board Chair Mike Wilson. "Petro-Canada is a unique, differentiated, and strategic asset due to its strong national network and best-in-market consumer brand and loyalty program."
A Committee of the Board, comprised of independent directors with support from independent external advisors and management, oversaw a comprehensive review and analysis of the company's retail business. The scope of the review consisted in part of, an analysis of the existing business, including an assessment of the value of Suncor's integrated model, case studies from comparable peers, studies of the future of retail in Canada, and Petro-Canada's growth plans.
The board also reviewed preliminary indications of interest from a global set of third parties in the Petro-Canada business, through an independent market check process, and considered feedback from a broad range of Suncor stakeholders including investors. The committee considered the pros and cons of a range of alternatives and the likelihood of capturing long-term value for Suncor if the business was sold.
The review highlighted the strength of the retail business, both as a leading marketer in Canada and as a key element of Suncor's industry-leading integrated model, particularly in the Downstream business.
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