Energy division drives DCC trading ‘well ahead’ of last year

Operating profit at DCC, the fuel distribution-to-technology services group, was in line with expectations in its first quarter and “well ahead” of the same period last year, it said in a trading update on Friday.

The Dublin-based but London-listed group said it finished its financial year on March 31st, 2022, strongly, and followed that up with “strong growth in the seasonally less significant first quarter of the year”, which ended on June 30th.

The group operates across three sectors — energy, healthcare and technology — and employs more than 15,400 people. It generated revenue of £17.7 billion (€20.9 billion) in its last financial year, as well as adjusted operating profit of £589.2 million.

DCC, which entered the energy sector through the 1977 purchase of Flogas in Ireland, said group operating profit for the quarter was “in line with expectations and well ahead of the prior year”, driven by strong growth in DCC Energy.

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DCC Energy’s strategy is to “accelerate the net-zero journey of its customers by leading the sales, marketing and distribution of low-carbon energy solutions”.

The group announced the appointment of Dr Fabian Ziegler as the new chief executive of its energy division in recent weeks. He will begin work on November 1st.

DCC Energy has recently completed a number of new bolt-on acquisitions, including the acquisition of Protech in the UK.

The acquisition of Protech “adds further energy solutions capability for commercial customers in the UK, including the provision of a range of renewable heat and power solutions, maintenance and other services”, the group said.

DCC has also completed a number of previously announced bolt-on acquisitions, including a further modest acquisition by DCC Healthcare in Germany and DCC Energy’s biogas investment in Denmark.

DCC Healthcare “traded robustly and in line with expectations”. DCC Technology recorded “strong growth”, benefiting from the first-time contribution of the acquisition of Almo.

In terms of outlook, DCC said it continued to expect that the year ending March 31st, 2023, would be “another year of profit growth and development, notwithstanding the challenging macro environment at present”.

DCC expects to announce its interim results for the six months ending September 30th, 2022, on November 8th.