North Atlantic's marketing division is headquartered in St. John's, Newfoundland and is comprised of five business segments: retail, home heating, commercial, wholesale and bunkers.
Retail
North Atlantic owns 61 retail gasoline stations and 3 commercial cardlock locations. Most locations include a convenience store which is independently operated. In 2007, the volume of gasoline and diesel sold at these locations represented a market share of approximately 15% of the Newfoundland retail market. The retail market in Newfoundland has relatively stable margins because the segment is regulated by the Petroleum Pricing Office of the Public Utilities Board. The major competitors in the Newfoundland market are Irving Oil, Imperial Oil and Ultramar. In May of 2003 North Atlantic expanded its retail division with the purchase of Petro-Canada’s retail gasoline assets in Newfoundland.
Since 2001, the sales price of residential home heating fuels and automotive gasoline and diesel fuel sold within the Province of Newfoundland and Labrador has been subject to regulation under the Petroleum Product Act (Newfoundland), administered by the Public Utilities Board. Under this act, the Pricing Commissioner has the authority to set the maximum wholesale and retail prices that a wholesaler and a retailer may charge and to determine the minimum and maximum mark-up between the wholesale price to the retailer and the retail price to the consumer within the Province of Newfoundland and Labrador. The wholesale and retail prices of petroleum products is adjusted every two weeks based on the New York Harbour benchmark price for these products, however, the prices may be adjusted more frequently when circumstances warrant.
Home Heating Business
North Atlantic delivers furnace oil and propane to approximately 20,000 residential and commercial heating customers throughout Newfoundland with about 80% of the demand for furnace oil and 20% for propane.
Commercial Business
North Atlantic delivers distillates, jet fuel, propane and No. 6 fuel oil to commercial heating, marine, aviation, trucking and construction industries from seven storage terminals located across Newfoundland.
Wholesale Business
North Atlantic provides distillates, jet fuel and propane to a number of wholesale customers from both its wharf and truck rack facilities with current volumes averaging approximately 3,300 barrels per day.
Bunker Business
North Atlantic sells bunkers to crude oil and refined product vessels at its wharf facilities.
Other Ancillary Assets
North Atlantic, through its Marine Division, manages vessel traffic to the Refinery and works with regulatory authorities on measures to prevent or mitigate the risk of oil spills and other marine related matters affecting facility operations.
The division oversees the facility’s vessel vetting requirements, enforces the facility’s jetty regulations and oversees tug operations. North Atlantic owns two tugboats, one of which is equipped for fire fighting and the other for oil spill response.
North Atlantic’s wholly owned subsidiary, Canadian Maritime Agency Limited, provides services to vessels entering Canadian waters, on behalf of terminals, charterers and ship owners. The agency handles all customs requirements and arranges vessel services such as crew changes, bunkering, pilots and tugs; collects and remits port fees, marine service fees and other government charges and levies, and provides other services as required.