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 rebranded its oil distribution business during the year as Certas Energy, bringing a new identity to the businesses which have been acquired since 2001. Certas Energy continues to sell oil under a large portfolio of brands, including Bayford, Brogan, Butler Fuels, 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), Top Oil (Austria), Top Oil Bayern and Bronberger & Kessler (Bavaria, Germany).
DCC Energy is one of the leading sales and marketing businesses for branded fuel cards in Britain. The business sells approximately 750 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.
Oil - Britain
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 38 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 approximately 30 billion litres and DCC sold approximately 5.6 billion litres of product to this market, giving a market share of approximately 18%. The total retail petrol station market in Britain is approximately 35 billion litres. This is split 40% hyper markets, 30% company owned and operated stations and 30% independent dealer owned. DCC Energy has approximately 4% of the total market and supplies to approximately 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 1,600 sites we supply.
Oil - Ireland
Emo Oil is one of the leading oil distributors in Ireland with a market share of 11%. DCC’s addressable oil market in Ireland is estimated at 9 billion litres.
Oil - Continental Europe
DCC’s Swedish oil distribution business (Swea) is the market leader in Sweden with a share of approximately 19% of the addressable market which is estimated at 2 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 12% 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 12%. With the oil majors continuing to divest of oil distribution assets, DCC Energy is well placed to continue its growth by acquisition. In February 2014 DCC announced that it had reached agreement to acquire Qstar, the fifth largest petrol station operator in Sweden, which sells 300 million litres of product through a network of 307 unmanned and 72 dealer operated petrol stations. The business which is based in Norrköping also operates an oil distribution business of 70 million litres.
DCC Energy, through the Flogas Group, 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 Flogas Group 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. Beyond LPG, Flogas in Britain now provides customers with renewable energy products such as biomass boilers, solar panels and heat pumps, through its recent integration of DCC’s New Energy businesses Clearpower and UFW. It has also started to provide liquefied natural gas (‘LNG’) as an energy solution for large industrial businesses with no access to natural gas, whilst Flogas Ireland has developed a strong position as a distributor of natural gas.
Britain represents DCC Energy’s largest LPG market at approximately 1 million tonnes. Trading under the Flogas brand, DCC Energy is the number two LPG distributor in Britain and Ireland with market shares of approximately 28% and 40% respectively. In Sweden and Norway, DCC Energy (trading under the Flogas brand) is market leader with approximately 49% and 47% market shares respectively. In the Netherlands where DCC Energy trades under the Benegas brand, the business has an overall market share of 20% (excluding the autogas market which DCC Energy entered during the year, the business has a market share of approximately 27%). Unlike the oil distribution market which remains highly fragmented, the LPG markets in Britain, Ireland, Sweden, Norway and the Netherlands are relatively consolidated.