Federated Co-operatives Limited is ready to adapt to the transitions in the energy sector.
That from CEO Scott Banda as he reviewed the financials for 2020 which included a pandemic and an over five month labour dispute at the Refinery in Regina.
He says FCL had strong results in its food, home and building, and agriculture business lines, but the energy markets collapsed, which led to revenues going down $13.5 per cent to $7.9-billion.
Banda says the Refinery lockdown didn’t affect their bottom line financially, but the result is that they now have a collective agreement which includes employees also contributing to their pension plans, as opposed to being all employer-driven.
He explains that FCL needs to become more competitive in the marketplace and that was part of the solution.
Banda understands that the energy industry is changing and says that’s why they have to get their bottom line in order, so they can invest in the future of energy, which includes new technologies and energy options.
FCL’s CEO suggests energy transformation is not like falling off a cliff where it will all happen at once.
Banda says the challenge is sustaining a traditional refinery while following new regulations and building on new investments which he expects will be in the billions of dollars.
He says, “It’s pretty clear that business as usual is not going to get it done for us, and that’s why we need to be competitive.”