DCC H1 profits grow as mobility offsets weak energy services demand

(Sharecast News) - Energy sales and distribution business DCC Energy reported modest first-half profit growth on Tuesday, with strong performances in its energy products and mobility businesses helping offset continued weakness in energy services, while adjusted earnings per share surged on the back of last year's share buybacks.

DCC said adjusted operating profits from continuing operations rose 1.1% year-on-year to £175.2m in the six months ended 30 September, while adjusted continuing EPS increased 25.6% to 120.5p. Revenues climbed 20.2% to £7.29bn, reflecting higher commodity prices, while free cash flow conversion improved to an "excellent" 119% on a rolling 12-month basis from 95% a year earlier.

Mobility was the standout performer, with operating profits increasing 8.9% despite a 4.7% decline in fuel volumes, supported by stronger margins and continued growth in convenience services and EV charging. Energy products also performed well, delivering a 5.5% increase in operating profits despite lower volumes.

However, energy services remained a drag on performance, with DCC citing weak customer demand, margin pressures and continued uncertainty surrounding government energy efficiency programmes. As a result, operating profits in its solutions division fell 4.3% to £97.4m.

The FTSE 100-listed firm committed £214m to acquisitions during the period, including the agreed purchase of Shell's mobility and convenience business in France.

DCC also noted that no interim dividend will be paid this year, in line with the terms of its recommended takeover by a consortium led by Energy Capital Partners and KKR.

As of 0900 GMT, DCC shares were down 0.77% at 6,455p.

Reporting by Iain Gilbert at Sharecast.com

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