Energy distributor DCC has today reported a 2.8% rise in annual profit, helped by demand for fuels, gas and solar energy solutions that have spiked since the Middle East war, and the company streamlining its operations.
DCC's board, on April 30, rejected a £4.95 billion cash proposal from a consortium of US private equity firms, Energy Capital Partners and KKR, arguing that it "fundamentally undervalues the company and its future prospects".
The company also said today that due to its strategic progress with its sole focus on energy, DCC has proposed, subject to shareholder approval, to change its name from DCC to DCC Energy.
DCC, which owns Flogas and Certa, today reported operating profits of £634m for the year to the end of March, a 3.6% increase year-on-year.
It posted adjusted earnings per share of 438.1 pence, an increase of 9.9%.
It said it was proposing a final dividend of 147.22 pence, marking a 5% increase in its total dividend to 216.72 pence.
Revenues for the year dipped by 2.9% to £15.44 billion from £15.9 billion.
DCC Energy said it sold 14.7 billion litres of product in the year, a decrease of 3.2% compared with the previous year.
It said that volumes in Energy Products declined by 3.1%, largely reflecting lower commercial volumes in its Nordic region, the impact of milder weather (particularly in France) and the disposal of the liquid gas business in Hong Kong & Macau in the previous year.
During the year, DCC said it made major strategic progress, simplifying the group to focus on energy, where it sees the most compelling opportunities to deliver sustainable long-term growth and returns.
It completed the sale of DCC Healthcare in September and also completed the sale of Info Tech in November.
The sale process for the remainder of DCC Technology has formally started and the company said it is progressing in line with expectations. DCC said its intention is to have reached agreement for the sale of the business by the end of calendar year 2026.
Within its energy division, DCC said the war in the oil-rich Middle East had driven overall demand for its services and products higher towards the end of the year ended March 31, more than offsetting a weaker UK & Ireland market.
Donal Murphy, the chief executive of DCC, said the 12 month period was a year of major strategic progress for the company.
"We transformed the group through the disposals and provided shareholders with material capital returns. At the same time, the business performed, delivering good profit growth notwithstanding the volatile market context," Mr Murphy said.
"With a simpler, more focused group, a strong financial platform, and a high cash generative Energy business with attractive organic growth prospects, our performance keeps us on track to deliver our £830m operating profit ambition by 2030 . We see an exciting future as DCC Energy plc," he added.
