Superior Plus achieves 5% increase in adjusted EBITDA in 2021
Chemical

Superior Plus achieves 5% increase in adjusted EBITDA in 2021

The company also expects to complete additional acquisitions in the range of $200 million to $300 million in 2022

  • By ICN Bureau | February 20, 2022

Superior Plus Corp., distributor and marketer of propane and distillates in both the U.S. and Canada, has reported 2021 net earnings from continuing operations at $17.2 million. Full-year 2021 adjusted EBITDA was $398.4 million, a 5% increase compared to 2020.  The company is introducing its 2022 Adjusted EBITDA guidance range of $410 million to $450 million.

Superior’s 2022 adjusted EBITDA guidance assumes the Kamps Propane acquisition closes in the second quarter, which excludes approximately $17-20 million of estimated Adjusted EBITDA based on historical first quarter results of that business. The company also expects to complete additional acquisitions in the range of $200 million to $300 million in 2022 which have not been included in the 2022 Adjusted EBITDA guidance.

“In 2021, we achieved a 5% increase in Adjusted EBITDA compared to 2020 despite the operational and logistical challenges we faced from warmer weather in the U.S. Northeast and Eastern Canada in the fourth quarter and continued public health restrictions impacting commercial demand,” said Luc Desjardins, President & CEO.

“I am proud of our team for their ability to persevere and deliver solid results considering the obstacles we faced. We also completed two acquisitions in Michigan and North Carolina at the end of the fourth quarter, continuing our growth through acquisition strategy in our existing footprint.”

Luc Desjardins further added, “Following the end of the fourth quarter, we announced a partnership with the Charbone Corporation in Quebec to provide green hydrogen to commercial and industrial customers. We are excited about the opportunity to sell green energy to current and new customers and developing our strategy to offer alternative energy products, including green and low-carbon energy to our customers by leveraging our expertise in the safe and efficient delivery of mobile energy solutions”.

Meanwhile, the fourth quarter adjusted EBITDA of $142.2 million, a $1.9 million or 1% decrease compared to the prior year quarter primarily due to lower EBITDA from operations, partially offset by lower corporate costs, and to a lesser extent, a lower realized gain on foreign currency hedging contracts.

Fourth quarter EBITDA from operations of $143.1 million, a $2.9 million or 2% decrease compared to the prior year quarter primarily due to lower results at Canadian Propane Distribution (Canadian Propane).

Net earnings from continuing operations of $13.8 million in the fourth quarter decreased $74.1 million compared to the fourth quarter of 2020 primarily due to higher selling, distribution and administrative costs, and a loss on derivatives and foreign currency translation of borrowings compared to a gain in the prior year quarter, partially offset by higher gross profit and lower finance expense.

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