Shell LPG sale accelerated to Q4

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The acquisition of the local liquid petroleum gas (LPG) market leader in the MSAR by international sales, marketing and support services group DCC is ‘progressing according to plan,’ according to a company press release. Expectations are for the acquisition to be completed in the fourth quarter of this year, the company announced.
The purchase, announced in early April, is of Shell Gas (LPG) Holdings BV’s Hong Kong and Macau LPG business and was valued at the time at HK$1.165 billion. Initial expectations were for the acquisition to be completed before March 31, 2018, the end of the group’s financial year, however, the new release pushes forward expectations.
Shell Hong Kong and Macau is ‘one of the leading LPG sales and marketing businesses in Hong Kong and Macau, where it has been selling LPG for almost sixty years. The business provides LPG in bulk, cylinder and autogas formats to domestic, commercial and industrial customers,’ notes the group’s annual report.
Under the new ownership, the company is expected to ‘deliver an annual operating profit of HK$145 million,’ notes the release, informing that the company will continue to operate under the Shell name in both SARs.
The latest company release informs that ‘DCC’s profits are significantly weighted towards the second half of its financial year. At what is still a very early stage in the financial year, the Group reiterates its belief that the year ending 31 March 2018 will be another year of profit growth and development.’