UK's DCC Energy H1 revenue rises on strong trading in energy products and mobility business

Overview

• UK multi-energy distributor's H1 revenue rose 20.2% yr/yr to £7.3 bln

• Adjusted operating profit for H1 up 1.1% to £175.2 mln

• Adjusted EPS rose 25.6%, mainly due to lower share count after buybacks

Outlook

• DCC Energy expects ongoing strategic progress, growth and continued development activity in the yr ahead

• Company expects transition to private ownership in Q1 2027, pending completion of acquisition

• Energy Services faces challenging near-term market conditions; long-term demand drivers remain attractive

Result Drivers

• ENERGY PRODUCTS AND MOBILITY - Co said strong trading and margin development in Energy Products and Mobility offset lower volumes, helping drive profit growth

• LOWER VOLUMES - Energy Products and Mobility both saw lower volumes due to factors including warmer weather, pull-forward of demand, and changes to fuel duty regimes

• CHALLENGING ENERGY SERVICES - Energy Services segment continued to face difficult market conditions, with weak demand and margin pressure in most markets

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer goods conglomerates peer group is "buy"

• Wall Street's median 12-month price target for DCC Energy PLC is GBp6,546.00, about 1.3% above its November 9 closing price of GBp6,460.00

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Nov 9 - UK's Kainos Group H1 revenue rises 37% on public sector contracts

• Nov 9 - Dole Q3 revenue meets expectations on North America volumes

• Nov 10 - Vodacom half-year profit surges 25.7% on Africa-wide growth, Safaricom deal

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)