Annual Report and Accounts 2006 - DCC plc
Annual Report and Accounts 2006 - DCC plc
Annual Report and Accounts 2006 - DCC plc
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
16operating review<strong>DCC</strong> Energybusiness reviewTommy BreenManaging Director<strong>DCC</strong> Energy<strong>DCC</strong> Energy markets <strong>and</strong> sells liquefied petroleum gas (LPG)<strong>and</strong> oil products for commercial/industrial, transport <strong>and</strong>domestic uses in Britain <strong>and</strong> Irel<strong>and</strong>. In the year to 31 March<strong>2006</strong>, <strong>DCC</strong> Energy sold in excess of 2.9 billion litres of LPG<strong>and</strong> oil products (2005: 2.5 billion litres). <strong>DCC</strong> Energycurrently employs approximately 1,900 people.The LPG business has an approximate22% share of the British market <strong>and</strong>an approximate 35% share of theIrish market. The business suppliesapproximately 130,000 customers,using 450 road tankers <strong>and</strong> otherspecial purpose vehicles from 65facilities throughout Britain <strong>and</strong>Irel<strong>and</strong>.The oil business has an approximate7% market share (excluding petrolretailing) in Britain making it theleading independent distributor <strong>and</strong>has an approximate 11% share ofthe Irish market. A fleet of 375 roadtankers services approximately215,000 customers from 67 facilitiesthroughout Britain <strong>and</strong> Irel<strong>and</strong>.<strong>DCC</strong> Energy purchases its LPG <strong>and</strong>oil from the major oil companies.Product is shipped either directlyfrom the major oil companies’refineries into <strong>DCC</strong> Energy’s ownimportation facilities or is collecteddirectly from the oil majors’ terminals<strong>and</strong> refineries. <strong>DCC</strong>’s financial strengthenables <strong>DCC</strong> Energy to be a preferredpartner of the major oil companies<strong>and</strong> strong relationships have beenbuilt with these suppliers overmany years.<strong>DCC</strong> Energy distributes under manystrong br<strong>and</strong>s including Emo Oil*,Ergas*, Flogas*, Fuel Services*,Scottish Fuels* <strong>and</strong> Shell.*<strong>DCC</strong> owned br<strong>and</strong>sPerformance management<strong>DCC</strong> has almost 30 years’involvement in the energy distributionbusiness <strong>and</strong> with this comes adepth of experience <strong>and</strong> industryknowledge that have enabled <strong>DCC</strong>to drive superior returns from thisbusiness. The performance of thebusiness is constantly monitoredthrough a broad range of key indicatorsprincipally focused on sales volumegrowth, operational <strong>and</strong> costefficiencies, cash flow <strong>and</strong> capitalutilisation.Over the past ten years, <strong>DCC</strong>Energy has achieved a compoundannual growth rate of 18.4% inoperating profit.22.519.418.113.29.333.156.051.845.842.397 98 99 00 01 02 03 04 05 06<strong>DCC</strong> Energy - operating profit (€m)1997 - <strong>2006</strong>