Business Irish

Tuesday 20 August 2019

Surging DCC still keen on expansion outside Europe

Tommy Breen
Tommy Breen
John Mulligan

John Mulligan

DCC remains interested in expanding beyond its European hinterland, but chief executive Tommy Breen said where it targets will be largely determined by the sale of assets by oil majors.

Shares in the company - whose activities stretch from fuel and IT distribution to waste management - jumped over 4pc in London yesterday as it said profits for the current financial year will be modestly ahead of market expectations.

Releasing interim results, DCC said that its operating profits in the first six months of its financial year rose 30pc to £88.4m (€125m). Excluding energy sales, revenue was up 4.3pc at £1.4bn (€1.98bn).

Its fuel sales in the period rose 11.6pc to 5.8bn litres as it felt the first impact of its acquisition of the Esso retail business in France.

About one-third of the growth in profits was organic, with the rest attributable to acquisitions.

Profits at DCC's energy division - it's one of Europe's biggest distributors of oil and gas - rose 73pc on a constant currency basis to £52.9m (€74.8m). About half that growth was organic.

Speaking to the Irish Independent, Mr Breen declined to say what specific new geographies the company might be interested in penetrating.

"We've said that that will probably be driven, if and whenever it does happen, by opportunities with oil majors," said Mr Breen.

He also reiterated that DCC won't sell its 50pc stake in Kylemore Services Group. The Hogan family, which owns the other half, this week made public an offer to DCC to buy back the group's stake for €6.5m.

Irish Independent

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