Fuel Oil News August 2018 | Page 13

Back in June 2012 , Inside Out featured an article entitled The March of DCC Energy which traced the company ’ s expansion activities in the UK oil distribution sector . Starting in 2001 with the acquisition of Scottish Oils – BP ’ s equity distributor business in Scotland – the company progressed over the next 10 or so years by way of a substantial and ambitious acquisition programme , resulting in DCC becoming the largest player in the UK distributor / oil distribution sector .

The expanded footprint in continental Europe A comparable programme has been pursued in continental Europe , which has been / is directed at satisfying two strategic priorities , in particular :

• To extend the geographic footprint in to those continental European markets deemed to offer good opportunities for future growth

• To achieve market leading positions – to be number 1 or 2 in each of its chosen markets Ongoing over the past nine years , acquisition activity has spanned a wide-ranging geography including Scandinavia , Benelux , France and Austria , incorporating both liquid fuels and LPG businesses .

Now comprising two of the four separate components of the overall DCC business portfolio , forecourt retailing & liquid fuels is now known as Retail & Oil with gases being LPG ; up to last year both were combined under the single DCC Energy umbrella .

A measure of the extent and success of the company ’ s mainland European expansion programme can be seen from the sizeable volume shares which this part of the portfolio represents , as follows : -

SWEDEN 2011 – Swea Energi , an independent fuel distributor ; market leader ( circa 17 %) 2012 – Statoil LPG businesses in both Sweden and Norway ; trading under the Flogas brand , market leader in both countries with circa 44 % share in Sweden and 41 % in Norway 2014 – Qstar network of circa 300 unmanned filling stations ; leading unmanned player

NORWAY 2012 – Statoil LPG business ( see above ) 2017 – Esso retail network of 250 sites ( 142 owned / 108 dealers ); number 3 with about 20 % share .

DENMARK 2009 – Shell oil distribution business ; amalgamated with the energy distribution activities of DLG in 2015 . One of Europe ’ s largest agricultural supply companies owned by Danish farmers , DCC own 60 % of the enlarged business 2016 – Alimentation Couche Tard , formerly Shell ’ s commercial , aviation and retail fuels business acquired by Couche Tard in 2015 , it comprises 205 sites ( 139 owned + 66 dealers ) and is number

A consistent theme running through this acquisition programme has been the addition of businesses which are both long / well-established and have a substantial , and often leading , presence in their local market sectors . In most instances , the acquisitions were formerly owned / operated by one of the major integrated , international oil companies which have been seeking to divest businesses as part of a wider exercise in portfolio rationalisation . Consequently , these acquisitions are well-endowed with brand equity which is a key element for future growth and profitability .

2 in the oil distribution sector and a leading player in filling station sector

BENELUX 2012 – BP LPG business , Benegas ; joint market leader with overall 27 % share in both Belgium and the Netherlands .

FRANCE 2015 – Esso retail fuels business comprising 272 unmanned sites + supply to 66 dealers and 46 autoroute service areas ; largest unmanned site network 2015 – Shell LPG business , Butagaz ; number 2 in market with about 25 % share 2016 – Gaz Europeen , a natural gas retail and marketing business supplying business and public sector customers in France ; considered to be highly complementary to Butagaz ’ s strong market position in LPG

AUSTRIA 2009 – Shell Direct , oil distribution business supplying transport & heating fuels to domestic , agricultural and commercial customers ; number 2 with circa 11 % share

Further expansion This year has seen DCC extend its footprint to new areas , with the addition of three new LPG businesses .

USA – Illinois-based Hicksgas ( retail west division of NGL Energy Partners ) operating across 10 states in the mid-west and north-west . Marketleading positions in three states with two thirds of business to domestic users for heating and one third to commercial and agricultural customers

Germany – TEGA , a refrigerant gas and LPG business based in Wurzburg , operating out of 5 sites mainly in southern Germany

South East Asia – Shell ’ s LPG businesses in Hong Kong and Macau ; Shell branded products will continue to be distributed under the company ’ s new name , DSG Energy

The acquisition programme to date has been an ambitious and extraordinary initiative , driven by a clear strategy to achieve an extended footprint in markets identified as offering future growth potential . Critically , it has been executed with great success . As such , it reflects admirably on the efforts and determination of all those involved at DCC .

Testament to the programme ’ s impact has been its undoubted contribution to enabling the company to join the hallowed ranks of the FTSE 100 !