Strategy and Development
DCC Energy’s vision is to be the leading oil and LPG sales, marketing and distribution business in Europe:-
- with strong local market shares;
- operating under multiple brands;
- generating high levels of ROCE;
- expanding into other geographic regions with attractive market characteristics; and
- developing a presence over time in the green/renewable energy sector.
In oil distribution, DCC’s strategy is to achieve a 20% share of the British market. With a particular focus on the non heating dependent segments of the market (including dealer operated retail petrol stations, the marine market and the aviation sector) and on national accounts, DCC Energy aims to leverage its extensive nationwide operational infrastructure to drive high levels of organic profit growth. During the year DCC acquired two marine importation and storage terminals in Inverness and Aberdeen. These will support the strategic aim of growing in the marine market and will also provide a platform for further such development over time. DCC Energy is also focused on selling differentiated products and cross selling add-on products and services such as lubricants and boiler maintenance services to its extensive customer base.
In the LPG market, DCC Energy will continue to leverage its strong market positions to drive organic profit growth on a sector by sector basis in both Britain and Ireland.
In fuel cards, DCC will continue to target high levels of organic growth through its extensive portfolio of branded fuel cards by investing in new telesales teams and cross selling fuel cards to its extensive oil distribution customer base. DCC Energy will continue to position itself as the partner of choice for all the providers of branded fuel cards in both the retail and bunker card networks.
DCC Energy made the first important strategic steps in developing the business into continental Europe through the acquisition of Shell’s oil distribution businesses in Austria and Denmark in the year ended 31 March 2010. The scale of the Austrian business was increased by the acquisition of the trade and certain assets of Top Oil GmbH in April 2011, while the Danish business acquired a small lubricant distribution business during the last financial year.
DCC is developing a presence in the renewable energy sector with the focus being to provide energy solutions to customers across the division, allowing them to understand and maximise the benefits of investments in alternative energy products and to support them in reducing their carbon footprints.