Shares in DCC PLC rose 5.8% to 4,910p after the FTSE 100 group posted strong third-quarter results and confirmed it remains on track to meet full-year earnings expectations.
The fuel station owner, energy distribution and services business posted an update devoid of hard numbers but which relayed "strong" adjusted operating profit growth for the three months to 31 December.
The performance was supported by "good" organic growth and recent acquisitions as it nears completion of a strategic shift announced in 2024 to simplify its operations and focus on energy.
DCC Energy, the company’s largest division, led the improvement, with a profits decline in the first quarter turning to growth in Q2 and now "strong" growth in Q3, as heating fuels and related products rebounded after weather-related weakness earlier in the year.
Energy Mobility business, which includes fuel stations and non-fuel services, also performed "well".
Energy Solutions, the smallest division, which specialises in transitioning customers to cleaner energy, remained a drag, with "challenging" UK conditions as commercial clients delaying decarbonisation investments due to cost pressures.
The company maintained its guidance for the year to 31 March 2026, saying it expects it will be one of "good operating profit growth on a continuing basis, significant strategic progress and ongoing development activity".
As the group nears the end of the stragic shift, it has committed around £100 million to acquisitions since last May, including entries into Austria, Poland and other Central and Eastern European liquid gas markets – areas with growth potential for off-grid energy.
The sale of its healthcare and info tech businesses has been completed, with plans still to divest the remainder of its technology division by the end of 2026.
Analysts at UBS said the update confirmed DCC’s positive momentum, nudging up its earnings forecasts slightly higher, raising its full-year adjusted EPS estimate by 1% and holding its 6,500p price target.