DCC Energy Revenue Rises 20.2% to £7.288 Billion in First Half
Key Facts
DCC Energy reported results on November 10 for the six months ended September 30, 2026, with continuing-operations revenue of £7.288 billion, up 20.2% from £6.062 billion in the restated prior-year period. The company said growth reflected a significant rise in commodity prices, despite a decline in overall volumes. Revenue growth was 18.8% on a constant-currency basis. Adjusted operating profit from continuing operations, meanwhile, increased 1.1% to £175.2 million from £173.3 million. But profit fell 0.1% excluding the effect of currency, highlighting the gap between nominal revenue growth and operating profitability.
Adjusted earnings per share from continuing operations rose to 120.5 pence from 95.9 pence a year earlier, an increase of 25.6%, or 23.8% at constant exchange rates. The company attributed the increase mainly to a lower weighted average number of shares following share buybacks and a tender offer in the prior year. The jump in earnings per share therefore reflects the effect of a smaller share base, while operating profit growth at constant currency remained slightly negative. The company did not report an interim dividend for November in these results. It said the absence of a payment was consistent with the terms of the recommended acquisition and the scheme document.
DCC Energy sold about 6.6 billion litres of products in the first half, compared with 6.8 billion litres in the prior period. The company said energy product volumes fell 2.5%, affected by orders brought forward to March, customers' efforts to conserve consumption, warmer-than-average weather and lower agricultural demand due to drought. Fuel volumes in the mobility business also fell 4.7%. However, gross profit from non-fuel services rose 22.1%, supported by growth in retail and other services. DCC said energy products and mobility traded strongly despite volume pressures, while very challenging market conditions persisted in energy solutions.
Operating results across the divisions were mixed over the same period: adjusted operating profit in the solutions business fell 4.3% to £97.4 million, while mobility profit rose 8.9% to £77.8 million. On cash flow, the free cash flow conversion ratio was 119% on a rolling 12-month basis, compared with 95% a year earlier. The group also recorded £214 million of committed acquisition spending in the first half of fiscal 2027. This included an agreement to buy Shell's mobility and convenience businesses in France, along with acquisitions in Poland, the United States, Ireland and Germany. The French deal includes a network of 70 service stations and a fuel card business, and is expected to complete in the first half of 2027, subject to approvals and employee consultation.
The results come as DCC completes its group simplification programme through the sale of Nexora, its technology business, which contributed adjusted operating profit of £47.2 million in the first half. The sale agreement, announced in October, values Nexora at an enterprise value of $725 million on a cash-free, debt-free basis and remains subject to customary regulatory approvals, with completion expected on or after March 1, 2027. DCC recorded a non-cash pre-tax accounting loss of £348.3 million, which it said mainly reflects the expected sale proceeds. The company estimates net proceeds could be $701 million if the sale completes on March 1, 2027, potentially adding 42 pence per share. The deal terms provide for additional shareholder consideration of up to 125 pence per share if the sale conditions are met or waived before July 31, 2027.
The chief executive said the group had transformed over the past two years from a diversified company spanning energy, healthcare and technology into a company focused solely on the energy sector. He added that the sale of Nexora would complete the simplification programme. DCC is itself subject to a recommended takeover by a consortium led by Energy Capital Partners and KKR, following shareholder approval. The company said it expects to move into private ownership in the first quarter of 2027, subject to the remaining conditions being met. That timetable places the ownership transition in the same period in which the company expects to complete the purchase of Shell's French businesses in the first half of the year, while the Nexora sale remains tied to closing approvals expected from March.