April 5, 2017 / 6:52 AM / 3 years ago

DCC names energy head Donal Murphy as successor to CEO

April 5 (Reuters) - DCC Plc said Tommy Breen, its chief executive of nine years, will step down on July 14 and be succeeded by Donal Murphy, managing director of its energy division, in a move that reaffirms the support services firm’s focus to build up its largest unit.

DCC, whose activities range from distributing oil to making Body Shop’s body butters and distributing Xbox to retailers Argo and Amazon, also announced plans to buy Royal Dutch Shell’s LPG business in Hong Kong and Macau for an enterprise value of HK$1.165 billion ($145 million).

The company has been seeking opportunities to purchase distribution and market assets from oil majors as they slim down their portfolio to ride out an oil price slump, and in February agreed to buy the retail petrol station network of ExxonMobil’s Norwegian unit.

DCC, which has in the past bought assets from oil companies such as Chevron and Total, said the Shell purchase was expected to complete before the end of its financial year on March 31 and would give it one of the leading LPG businesses in Hong Kong and the market leader in Macau.

Following the completion of the deal, the business will continue to operate under the Shell brand in both Hong Kong and Macau, based on a long-term brand licence agreement, the Dublin-based company said in a statement.

DCC forecast full-year operating profit and adjusted earnings per share in line with current market consensus. It had in November forecast profit ahead of market consensus, citing benefits from acquisitions and strong trading.

For Shell, the sale will contribute to the Anglo-Dutch company’s effort to make disposals of $30 billion by around 2018, following the $54 billion acquisition of BG Group in February 2016. ($1 = 7.7700 Hong Kong dollars) (Reporting by Esha Vaish in Bengaluru; Editing by Sunil Nair)

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