DCC on the prowl for unmanned fuel stations

DCC, the energy-to-technologies conglomerate, is seeking to buy chains of unmanned petrol stations across Europe as well as liquid petroleum gas assets from oil majors, its chief executive, Tommy Breen, has said.

“The pace of divestment by oil majors is quickening. There will be opportunities for us,” he said yesterday as he annou- nced a 6 per cent rise in DCC’s revenue to more than £11.2 billion (€13.8 billion) and a profit surge of more than 11 per cent.

Mr Breen said no deals were “imminent”, but added that DCC was “very active” in its discussions with some of the biggest energy companies in the world. “We have to be patient. We don’t influence the divestment timetables of the majors,” he said after a results briefing.

“But the opportunities will come. We will absolutely be interested in some of them.”

UK fuel stations Dublin-headquartered DCC, which is listed in London and derives much of its revenue from the UK, owns just one unmanned fuel station in Ireland, near Dublin Airport. Mr Breen said it was unlikely that it would open many such stations in Ireland, but "there is scope" for them in Britain.

In January, DCC agreed to buy Qstar, a £40 million chain of 307 unmanned fuel stations in Sweden. Customer-operated petrol forecourts are common across Europe – 60 per cent of all stations in Sweden are unmanned – and it is likely any deals DCC might conclude in this sector would be on the continent.

DCC recorded strong growth in the year to the end of March across its five operating divisions – energy, technology, environmental, healthcare, and food and beverage.

Volumes in DCC’s energy division, by far the largest part of its businesses and comprising a network of fuel supply businesses across Europe, rose by 6 per cent last year. But the lower price of oil meant revenue climbed by just 1.6 per cent to £8.2 billion. About half of the division’s growth came through acquisitions.

Technology division Its technology division, formerly known as SerCom, recorded revenue of £2.26 billion, an increase of 22 per cent, while it had an operating profit of £48 million. Most of the growth was organic, fuelled by DCC's improving position in the market for distributing tablets and smartphones. About 11 per cent of the division's earnings came from sales of games consoles.

Profits in DCC’s healthcare division rose by 37 per cent to £30 million, while its much smaller operating units of environmental and food/beverage made operating profits of £11.7 million and £7 million respectively. DCC’s share price closed yesterday at £33.40, up almost 8 per cent.