Non Renewable Energy #2: Oil. OIL Oil is the #1 used energy resource in the world.
DCC Energy -Overview/media/Files/D/DCC-v2/documents/results-and... · 2 DCC Energy Marketing and...
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1 DCC Energy - Overview 17 August 2009
Transcript of DCC Energy -Overview/media/Files/D/DCC-v2/documents/results-and... · 2 DCC Energy Marketing and...
1
DCC Energy - Overview
17 August 2009
2
DCC Energy
Marketing and selling oil and liquefied petroleum gas (LPG) in Britain and Ireland
• Leading oil and LPG distribution business in Britain and Ireland
• Oil for heating, transport and industrial / agricultural processes
• LPG for heating, cooking, transport and certain industrial /agricultural processes
• Extensive customer base in domestic, agricultural and industrial customers
• Recognised owned brands and third party fuel cards
• Leading market positions
• Strong supply relationships with oil majors
• Recurring revenues, cash generative, high ROCE
64%ROCE excl. intangible assets
25%
€100.7m
€4,130.8m
2009
ROCE incl. intangible assets
Operating profit
Revenue
Operating profit (€’m) - 10 years CAGR : 18.7% - 5 years CAGR : 17.4%
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Oil Market Position – Britain
• No. 1: 12% market share
• Total (c. 3%), Watsons, Pace, Bayfords, NWF, Rix, Brogans
• Excellent nationwide infrastructure
• c. 4.0bn litres Mkt. Share
- Scotland 20%- North 14%- South 9%
• National Accounts – c. 20% volume
• Customers: 350,000Facilities: 133Vehicles: 731Employees: 1,640
• Portfolio of 32 brands
• Boiler maintenance / Lubes
Oil– Britain
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Republic of Ireland
• No. 6: 6% market share
• Topaz 37%, Texaco 16%, Esso 13%,Top 9%, Maxol 8%
• c. 520m Litres
• Customers: 47,000Facilities: 17Vehicles 83
Northern Ireland
• No. 1: 20% market share
• Kellys, Maxol, Nicholl, Scotts
• c. 500m Litres
• Customers: 33,000Facilities: 7Vehicles 54
Oil - Ireland
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Oil - Denmark
• No: 2 15% of small drop market (less than 5,000 litres)
• Statoil 18%, Shell 15%, YX 15%, OK 11%, Q8 10%
• C. 250m litres
• Sells to 30,000 domestic, commercial, industrial customers
• Operates out of third party terminals
• All haulage services outsourced
• Long term Shell Branded Supply Agreement
• Completed 1 August 2009
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9631 9620
9610
95759574
9560
9550
9541
9530
9520
9510
9500
94939492
9490
9480
9460
94409430
9400
93709362
9352
9340
9330
9310
9300
9293
9280
9270
92609240
9230
922092109200
9000
8990
8983
8981
8970
8963
8961
8950
88708860
8850
8832
88318830
88008586
8585
8581
85708560
85508544
9382
9381
8900
7470
7900
7950
9320
9600
9380
4941
4930
4700
4720
4230
4200
46404683
4792
4943
4941
4930
4700
4720
4230
4200
46404683
4792
4943
2300
2 100
200 0
2650
2640
26 35
26 30
26 25
26 20
2605
2600 261 0
2 920
290 0
288 0
2860
28502840
2830
282 0
2800
2791
2770
2740
27 30
2700
2665
266 0
2980
27502765
2760
2720 2200
293 0
3000
3050
3150
3630
4060
40702300
2 100
200 0
2650
2640
26 35
26 30
26 25
26 20
2605
2600 261 0
2 920
290 0
288 0
2860
28502840
2830
282 0
2800
2791
2770
2740
27 30
2700
2665
266 0
2980
27502765
2760
2720 2200
293 0
3000
3050
3150
3630
4060
4070
Alborg OK
EsbjergQ8
AabenraaHaahr
Nykøbing FalsterSamtank
Provestenen Shell& Provestenen YX
HedehuseneStatoil
Århus Q8
Kalundborg Statoil(Ref)
Fredericia Shell (Ref)
6
LPG
Britain
• No. 2: 20% market share
• Calor 50%, Shell 9%, BP 9%
• Customers: 124,000Facilities: 60Vehicles 408
Ireland
• No. 2: 37% market share
• Calor 60%, Other 3%
• Customers: 18,000Facilities: 6Vehicles 101
7
Fuel Card
• Market
- Retail Cards: 5bn litres
(PHH Arval 2.5bn Litres)
- Bunker network: 3bn litres
• DCC Volumes c. 400m litres
• Extensive portfolio of branded cards- BP
- Diesel Direct- Esso- Shell- Texaco
- Red
• Access to all networks except Jet
• Excellent technology platform
8
Derv
27%
Kero
37%
Gas Oil
28%
Petrol
4%
Fuel Oil
4%
Oil - Product Mix
Fuel Oil
5%
Gas Oil
29%
Kero
21%
Derv
40%
Petrol
5%
Product Split Margin Split
9
Sales volumesyear ended 31 March
Litres (billions)
5.3
4.3
3.22.9
2.5
2.12.0
1.71.4
1.1
0.80.7
1.0
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
97 98 99 00 01 02 03 04 05 06 07 08 09
10
Operating profityear ended 31 March
€’m
15.8% 46.0% 25.6% 9.7% 12.2% 8.2% 8.5% 25.0% 35.5%
22.5
32.8
41.245.2
50.7 54.8
100.7
74.3
59.5
0
10
20
30
40
50
60
70
80
90
100
110
01 02 03 04 05 06 07 08 09
10 Year CAGR
18.7%
17 Year CAGR
25.9%
Growth Rate
11
Cash Flow
DCC Energy Cash Generation – 5 years to 31 March 2009
(32.8)(18.6)(14.2)Working Capital
TotalLPGOil€’m
24.3122.3(98.0)Net Cash Generation
(254.3)(18.8)(235.5)Acquisitions
278.6141.1137.5Free Cash Flow
(146.7)(82.1)(64.6)Capex
458.1241.8216.3EBITDA
114.872.742.1Depreciation
343.3169.1174.2Operating Profit
12
Strategy
• Drive organic profit growth through leveraging the scale of the business- Extensive customer base c. 600,000
- Optimise procurement options (depot by depot)
- Technology driven routing and scheduling / fleet management
• Continue to consolidate the British and Irish markets- Target 20% of the British oil distribution market
• Develop the business in continental Europe
• Expand sales of differentiated products e.g. premium heating oil
• Cross sell “add-on” products and services- Heating services, lubricants, haulage
• Continue to broaden the business in the transport fuels segment
• Expand product/service offering to include alternate energies
13
• Supply
- long term contracts and relationships with the Oil Majors operating in Britain & Ireland
• Specialisation - focus, flexibility, service
• Management disciplines
- efficiency
- asset utilisation
- low cost operator
• Local business
- use direct or distributor channel as appropriate
- acquisitions add value
Key factors
14
DCC Energy - Summary
*80930,000No. 2ShellOil –Denmark
1,457231624,000* outsourced
N/A418,000No.1 agencycard
business
Fuel Card Services (BP, Esso, Shell, Diesel Direct, Texaco)
Fuel Card -Britain
101618,000No. 2FlogasLPG –Ireland
40860124,000No. 2FlogasLPG –Britain
54733,000No. 1Emo Oil Oil – NI
831747,000Leading independent
Emo Oil Oil – ROI
731128346,000No.1Emo Oil, Shell, Scottish Fuels, Texaco, Carlton Fuels, CPL Petroleum
Oil –Britain
VehiclesFacilitiesCustomersMarket
positionsBrandsMarketsector
