DCC, the Dublin distribution and marketing group, has revealed plans to expand its oil business in Northern Ireland by acquiring rival companies. Mr Sam Chambers, managing director of DCC Energy in the North, said the group, listed in Dublin and London, was seeking new acquisitions in the North.
"We are interested in purchases that will give us decent extra volumes and access to depots in new places." DCC Energy has a significant energy business throughout Ireland. In the North its core business is oil importation and distribution.
It trades in Northern Ireland under the Emo, Cawoods and Fuel Services brands. The company also distributes liquified petroleum gas, chiefly under the Flogas brand.
DCC has its Northern headquarters in Belfast but operates from a number of depots across Northern Ireland, from Coleraine to Cookstown and Newcastle.
In the Republic, DCC has both a well-established oil distribution and LPG operation and a petrol business which trades under the Emo and Burmah brands.
The company currently does not have any petrol stations in the North.
According to Mr Stephen Furlong, an analyst with Dublin-based Davy Stockbrokers, the energy division is a major cash producer for DCC.
Latest annual results show that DCC's energy division delivered #20 million (£15.74 million) operating profit last year. "DCC has a fairly strong share of the energy market in Northern Ireland. It is likely to look at bolton acquisitions because it is looking at expanding all of its energy operations throughout the North and the Republic," Mr Furlong said.
DCC has seen strong growth from its oil distribution business in Northern Ireland since it acquired former competitors, Cawoods and Fuel Services, three years ago.
Mr Chambers said: "These two acquisitions more than doubled the scale of the business in the North and have ensured a strong presence with a market share of around 20 per cent."
But he said the group had experienced "distortions" in the market because of "cross-Border differentials in the market place".
Mr Chambers said the company's approach to these distortions was to "gain advantages that accrue to a large company".
