DCC Energy
DCC Energy is the leading oil and liquefied petroleum gas (LPG) sales, marketing and distribution business in Britain and Ireland. In the year ended 31 March 2009, DCC sold 5.3 billion litres of product to c. 600,000 domestic, commercial, industrial and agricultural customers from its extensive network of 230 depots located throughout Britain and Ireland. DCC Energy employs 3,500 people.
Businesses and Markets
DCC is the largest oil distributor in Britain and Northern Ireland, with an approximate market share of 14% (including transport fuels) and 20% respectively, while in the Republic of Ireland DCC Energy has approximately 6% of the market. DCC recently acquired branded oil distribution businesses in Denmark and Austria from Shell, which have 13% and 11% shares of their respective markets. DCC Energy distributes oil under many strong brands including Carlton Fuels, CPL Petroleum, Emo Oil, Shell and Texaco.
DCC Energy’s LPG business supplies propane and butane in both bulk and cylinders to domestic, commercial, agricultural and industrial customers for heating, cooking, transport and industrial processes. Trading under the Flogas brand, DCC Energy is the number two player in the LPG market in both Britain and Ireland with market shares of 20% and 37% respectively.
DCC Energy first entered the fuel card market through the acquisition of the Fuel Card Group in January 2005. The business now sells in excess of 500 million litres of motor fuel annually via a portfolio of fuel cards under the BP, Esso, Shell, Texaco and Diesel Direct. Fuel cards have become an essential tool for commercial organisations to manage their transport costs.
Strategy and Development
In oil distribution, DCC's strategy is to achieve a 20% share of the British market. DCC Energy is also leveraging its extensive nationwide operational infrastructure to drive high levels of organic growth.
In the LPG market, DCC Energy will continue to leverage its strong market position to drive organic growth on a sector-by-sector basis in both Britain and Ireland.
DCC is focused on broadening its business in the non-heating related segments of the energy market in both oil and LPG. Having established strong market positions in both Britain and Ireland, DCC Energy is seeking to extend its business into continental Europe.
In the fuel card market, DCC intends to continue to target high levels of organic growth and invest in new telesales teams to cross-sell fuel cards to its extensive oil distribution customer base. DCC will continue to position itself as the partner of choice for all the providers of branded fuel cards in the market.
Performance Management
DCC has over 30 years' involvement in the energy distribution business. The business demands detailed hands-on management and is constantly monitored through a broad range of key indicators principally focused on sales volume growth, margin, operational and cost efficiencies, cash flow and capital utilisation.
Over the past 10 years, DCC Energy has achieved a compound
annual growth rate of 18.7% in operating profit.
Relevant Links
http://www.dccenergi.dk
http://www.emo.ie
http://www.emooil.com
http://www.flogas.ie
http://www.flogas.co.uk
http://www.flogasni.com
http://www.fuelcard-group.com
http://www.gb-oils.co.uk
http://www.greatgas.ie
http://www.shell-direct.at
http://www.thefuelcardpeople.co.uk
