DCC Energy’s oil distribution business supplies transport fuels, heating oils, and fuel oils to commercial, retail, domestic, agricultural, industrial, aviation and marine customers in Britain, Ireland, Denmark, Sweden, Austria and Germany. In Britain, DCC Energy sells oil under a portfolio of brands including Bayford, Butler Fuels, Brogan, Carlton Fuels, CPL Petroleum, Gulf, Pace Fuelcare, Scottish Fuels, Shell and Texaco. Outside of Britain, DCC Energy sells oil under the leading brands of Emo Oil (Ireland), Swea (Sweden), DCC Energi (Denmark), Energie Direct (Austria) and Top Oil (Austria). DCC has recently established a greenfield operation in Bavaria operating under the brand Top Oil Bayern and since the year end it has acquired a small oil distribution business in Bavaria, which trades as Bronberger & Kessler.
DCC Energy is one of the leading sales and marketing businesses for branded fuel cards in Britain. The business sells circa 700 million litres of transport fuels annually through its portfolio of fuel cards under the BP, Esso, Shell, Texaco and Diesel Direct brands. Fuel cards are an essential tool for commercial organisations to manage their transport fuel costs. DCC Energy provides its customers with access to the breadth of the British retail petrol station and bunker networks through its portfolio of branded fuel cards, while giving them detailed information on fuel utilisation to assist in minimising their spend on transport fuels.
DCC Energy has been the consolidator of what was and continues to be a highly fragmented oil distribution market in Britain. DCC Energy first entered the market in September 2001 with the acquisition of BP’s business in Scotland and since then has acquired and integrated 28 businesses including the oil distribution businesses of Shell (2004), Chevron Texaco (2008), and Total (2011). DCC Energy is now, by far, the largest oil distributor in Britain. DCC’s addressable market in Britain comprises transport fuels and heating oils to commercial, industrial, domestic, agricultural and dealer owned petrol stations. This is a market of circa 31 billion litres and DCC sold circa 5.8 billion litres of product to this market, giving a market share of approximately 18% (excluding DCC Energy’s supply to larger dealer petrol stations in Britain DCC’s market share is circa 16%). The total retail petrol station market in Britain is circa 35 billion litres. This is split 40% hyper markets, 30% company owned and operated stations and 30% independent dealer owned. DCC Energy has circa 4% of the total market and circa 10% of the dealer market. DCC Energy operates in the independent dealer owned segment of the retail market and today is the largest supplier to this segment, based on the number of sites (selling to approximately 1,600 sites).
Emo Oil is one of the leading oil distributors in Ireland with a market share of 10%. DCC’s addressable oil market in Ireland is estimated at 9 billion litres.
DCC’s Swedish oil distribution business (Swea) is the market leader in Sweden with a share of circa 17% of the addressable market which is estimated at 2.3 billion litres. The addressable oil distribution market in Denmark is estimated at 2 billion litres of which DCC Energi Danmark has a market share of 13% and is the number two oil distributor. The addressable oil distribution market in Austria is estimated at 5 billion litres and DCC’s business Energie Direct is the number two in this market with a share of 13%. With the oil majors continuing to divest oil distribution assets, DCC Energy is well placed to continue its growth by acquisition. During the year to March 2013 DCC Energy commenced a greenfield operation in Bavaria, Top Oil Bayern. In May 2013, DCC Energy acquired Bronberger & Kessler, a 250 million litre oil distributor based in Munich.
DCC Energy is the second largest LPG sales marketing and distribution business in Britain and Ireland, the largest LPG distributor in Sweden and Norway and the joint leading distributor in the Netherlands. The 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. In
Britain, the business operates from a nationwide infrastructure comprising 63 facilities, while in Ireland the infrastructure comprises 6 depots throughout the country. In Sweden and Norway, the business operates from 10, mostly third party owned, locations while in the Netherlands the business operates from one central depot. The LPG business also distributes a wide range of LPG fuel appliances, such as mobile heaters and barbeques.
Britain represents DCC Energy’s largest LPG market at approximately 1.0 million tonnes. Trading under the Flogas brand, DCC Energy is the number two LPG distributor in Britain and Ireland with market shares of approximately 27% and 39% respectively. In Sweden and Norway DCC Energy (trading under the Flogas brand) is market leader with circa 47% and 43% market shares respectively and in the Netherlands the business has a market share of approximately 24% trading under the Benegas brand. Unlike the oil distribution market, which remains highly fragmented, the LPG markets in Britain, Ireland, Sweden, Norway and the Netherlands are relatively consolidated.
Through the newly acquired Clearpower business and the existing UFW business, DCC Energy is developing a presence in the renewable energy sector. Clearpower is a bioenergy and environmental services business, based in Ireland with a presence in Britain while UFW is a distributor of innovative renewable energy solutions (including solar panels, biomass, geothermal heating and underfloor heating) in Britain with a broad supplier and customer base.