In its first quarter trading update, Irish-based conglomerate DCC reported a rise in operating profit and an uptick in its energy sector thanks to recent acquisitions. Though the first three months of the financial year are typically less momentous, the corporation anticipates robust growth in operating profit for the year.
DCC, which also operates in healthcare and technology, has successfully completed acquisitions worth approximately £65 million since its May results announcement. These include the purchase of fleet telematics firm Cubo by DCC Energy and the finalisation of a deal with Wirsol Roof Solutions, a specialist in solar photovoltaic (PV) and battery storage.
Other significant acquisitions for the energy sector in the first quarter were Next Energy, Secundo Photovoltaik, and Copropriétés Diagnostic. Additionally, a majority of its liquid gas enterprise in Hong Kong and Macau was sold to Citadel Pacific. This deal resulted in a $105 million (€96.9 million) cash payout for DCC, with the remainder of the $150 million being paid by retaining a minority stake.
Following this, DCC Energy is looking to further refine its strategic and geographical focus as it moves towards the implementation of its “Cleaner Energy in Your Power” strategy, according to CEO Donal Murphy.
The acquisitions signify great potential for growth in both Europe and North America. Davy analyst Colin Grant stated that the focus of DCC Energy on renewables and services in Europe and liquid gas consolidation in North America demonstrates strategic capital recycling into sectors with greater potential for growth.
In other news, the company has announced the appointment of Steve Holland, former Brenntag CEO, as a non-executive director. DCC is also scheduled to hold its AGM on Thursday.