Arthur Irving is no longer in his leadership role at Irving Oil, and his daughter, Sarah Irving, is no longer part of the leadership team, according to the company’s website, fuelling further speculation about the future of one of New Brunswick’s largest employers.
Irving, 93, who was chair of the Saint John-based board of directors, is now listed as chairman emeritus, while Sarah Irving, who was executive vice-president and widely seen as his heir apparent, is no longer listed.
Company spokesperson Katherine d’Entremont did not respond to requests by email and phone on Tuesday and Wednesday for comments.
“No decisions have been made about where this strategic review may lead,” Arthur Irving, Sarah Irving and Irving Oil president Ian Whitcomb, said in a statement last June, when the strategic review was announced.
Sarah Irving, the former executive vice-president of Irving Oil, is pictured here at Port Days in 2017, when she told attendees her grandfather ‘had a vision’ for the company when he started it, and all he hoped it would be. ‘He was thinking big, but his roots and his team would always be right here at home,’ she said. (CBC)
“Considerations will be given to a new ownership structure, a full or partial sale, or a change in the portfolio of our assets and how we operate them,” they said.
With 4,000 employees, the privately held company is one of the most powerful in the province.
‘Transition time’
Premier Blaine Higgs, a former Irving Oil executive, who worked for the company for more than 30 years, told CBC Wednesday he is surprised and saddened by news of the leadership changes.
“I think [it] shows it’s a transition time for the business,” he said.
“I guess they’re making big decisions about their future.”
Irving Oil’s Saint John refinery is Canada’s largest, processing about 320,000 barrels a day and producing gasoline, diesel, heating oil, jet fuel, propane and asphalt. (Mike Heenan/CBC)
Founded in 1924 by Arthur’s father, K.C. Irving, Irving Oil operates Canada’s largest refinery in Saint John, which processes about 320,000 barrels a day and is New Brunswick’s largest greenhouse gas emitter.
The company has “more than 900 fuelling locations and a network of distribution terminals spanning Eastern Canada and New England,” according to its website.
It also operates Ireland’s only refinery, Whitegate, which processes up to 75,000 barrels a day.
Forbes Magazine listed Arthur Irving as the eighth richest person in Canada in 2023, with an estimated net worth of $5.7 billion. The Bloomberg Billionaires Index lists him as sixth richest, with a total net worth of about $8 billion.
Could be a ‘precursor’
Industry consultant Andrew Lipow said the leadership changes could signal more changes to come.
“It could be a precursor that there’s going to be a potential change in the ownership of the company, or that … the board of directors has decided it’s time for new leadership to be installed, and that’s people who are outside of the original founding family, said Lipow, president of Lipow Oil Associates, based in Houston.
“I think that the family may have decided that they’d just simply like to cash out of that investment,” he said, also citing the more stringent federal environmental regulations, aimed at lowering Canada’s greenhouse gas emissions over time.
“Irving may be looking at making a significant investment in order to comply with those regulations, and the existing ownership may have decided that perhaps the sale to a third party with additional financing being available is the way to go to maintain and enhance their business over the next several decades.”
The Saint John refinery is valued at about $2 billion.
It’s difficult to predict who a potential buyer would be, said Lipow.
“It could be a Canadian oil producer. It could be private equity that decides to come in and make an investment. It could be another international oil major looking for a refining asset in which to monetize their oil production.”
A potential sale would not result in a halting of the refinery’s operations, according to Lipow. It is a “major supplier” of gasoline and diesel fuel into Eastern Canada as well as into New England, he said.
Any changes at Irving Oil, however, would be felt throughout the region, Lipow said.
That could include, for example, a rebranding of the gas stations located on “many corners,” he said.
‘Respected advisory role’
As the chairman emeritus of Irving Oil, Arthur Irving “continues to maintain a respected advisory role for the Board and its activities,” the company’s website says.
It previously said he was responsible as chairman “for establishing the vision for the company and providing overall guidance to [the] senior leadership team.”
Sarah Irving was previously described as the executive vice-president, who “grew up in the family business, understanding well the importance of great employees and loyal customers in achieving success.”
Sarah Irving isn’t often heard from in public, but in a speech six years ago at Port Days, she spoke with pride about the company and its legacy.
“When my grandfather K.C. Irving founded Irving Oil in 1924, he had a vision for our company,” she said.
“Here, in Saint John, he saw many opportunities of a place with unparalleled natural advantages. And together with his sons Jim, Arthur and Jack, and the many dedicated employees of Irving Oil, they would work hard to make this vision a reality, in building businesses that would span the globe, but always remain true to home.”
The rest of the leadership team at Irving Oil remains unchanged, according to the website.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
