Spotlight 39
DCC has reached agreement to acquire BP’s LPG distribution business in Britain. Completion of the acquisition is expected to take place at the end of September 2012.
The deal is worth approximately £40.5m, to be satisfied at completion, after the net tangible operating assets of the LPG business were valued at approximately £30m (€38m) on 31 December 2011.
The Bristol-based business currently supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles. Haulage services are principally outsourced.
Flogas, DCC’s existing LPG arm in Britain, has annual sales volumes of approximately 190,000 tonnes.
Tommy Breen, DCC chief executive, said: “We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities. This transaction will enhance DCC’s position as the leading oil and LPG sales, marketing and distribution business in Britain.”
www.dcc.ie
Former conquerors of Kilimanjaro, the Crown Oil team are now tackling their latest challenge
Burnley based fuel and lubricants distributor Samuel Cooke has been ‘rescued from the administrator’, after the acquisition of key assets by Crown Oil.
Crown Group managing director, Matt Greensmith, explained, “We will continue to trade under the Samuel Cooke name and we can assure existing customers a flawless continuity of service. The Crown and Cooke businesses have many similarities, both being long established, independent and family owned firms that have built sound reputations based on high and consistent levels of service.”
A handful of Cooke’s former employees have already found employment with Crown Oil who are hopeful that there will be more opportunities as the business is consolidated. Staff at Cooke’s had previously been informed that all jobs would be lost as the company went into administration.
Crown Oil general manager, Mark Andrews, said: “We will offer same day or next day emergency deliveries where required with programmed fuel delivery for larger customers.”
Cooke customers will have access to a wider range of advanced low carbon fuels and speciality lubricants. In line with Crown’s environmental commitment all Samuel Cooke’s delivery mileage by road tankers will now be fully carbon offset.http://www.crownoiluk.com/
Frank Carroll, chairman and owner of Samuel Cooke & Co
Burnley based fuel distributor Samuel Cooke & Co went into administration in late July.
The company’s staff were informed on 23 July that the majority of the 86 jobs had been lost as a result, although 12 were retained to assist the administrators.
Some customer dealings are now being investigated by the police, although no further details are currently available.
Administrator Paul Flint said: “The business suffered an unexpected loss in relation to a specific group of customers that impaired asset value and, as a result, placed the business under a significant cash strain.
“The directors reported this position to the police, and it remains under investigation.”
“Regrettably, despite the best attempts of the directors to recover from the situation, they have been unable to find a solvent solution to allow the businesses to continue to trade.”
A statement on the company’s website read: “Paul Flint and Brian Green were appointed joint administrators of Samuel Cooke & Co Limited on July 23 2012. The company has ceased to trade with immediate effect and the assets of the company are being earmarked for sale.”
Steven Reeve, driver (l) and Russell Fairchild, operations director of WP Group
WP Group has announced the acquisition of local fuel distributor Upton Oil Company.
Based in Poole with depots across the south including Ringwood and Dorchester, Upton Oil Company specialises in supplying a local, friendly service to heating oil users, the farming community and commercial customers.
David Fairchild, managing director of WP Group, commented: “This acquisition is beneficial for both parties as it brings together a wealth of experience and knowledge from both sides. I have always respected Upton Oil Company’s customer loyalty and hope to further improve the service they receive by utilising WP Group’s extensive infrastructure across the south coast.”
He added, “The business will continue to trade under the long established Upton Oil Company brand and will service the existing customer base, who will not notice any disruption to normal service.”
www.thewp-group.co.uk
Andrew Owens, chairman of Greenergy
Greenergy has announced the purchase of assets at the former Petroplus facility in Teesside from the joint administrators of Petroplus Refining Teesside Ltd, PwC.
The Seal Sands based terminal, previously operated by Petroplus, ceased commercial operations shortly after the company went into administration earlier this year.
Greenergy has been supplying customers in the region from the nearby Vopak terminal, where it has invested in fuel manufacturing, storage and distribution facilities. Andrew Owens, Greenergy chief executive, commented: “The north east is an important hub in our UK fuel infrastructure platform and an area where we have significant sales volume. We will continue to manufacture fuel and supply our customers from the Vopak facility. Once it has been developed, this new site will be integrated into our existing north east system to give additional product and manufacturing capability.
This strategic infrastructure investment follows Greenergy’s recent acquisition of assets at the Coryton refinery in a joint venture with Vopak and Shell.”
The terminal will remain closed for commercial supply over the next few months while development plans for the site are drawn up in cooperation with the relevant authorities.
The plans will include the construction of a new rail head, making Teesside the hub of Greenergy’s rail distribution network. This will allow efficient movement of fuel between Teesside and other UK locations by rail, rather than road or ship.
The existing 20 staff will be retained, and will assist in the development planning.
DCC Energy UK’s acquisition of several heating and transport fuel distribution businesses, including Butler Fuels, has been provisionally cleared by the Competition Commission (CC).
The case was referred by the Office of Fair Trading (OFT) in April, and the final report is expected to be published by the CC by 18 September 2012.
DCC bought the businesses in September 2011 from Rontec LLP, which had previously bought them from Total Downstream UK in June 2011.
In its findings, the CC has provisionally stated that customers supplied by the various businesses would not be adversely affected by a decrease in competition, as a result of the deal.
Chairman of the DCC/Rontec Inquiry Group and CC deputy chairman, Simon Polito, commented: “Central to our decision has been the effect on customers requiring small-scale deliveries across a number of sites, and whether they would be likely to use a number of different suppliers as an alternative to a single supplier with nationwide coverage. We found that these customers are generally quite sophisticated in their purchasing practices. A number of them already multi-source and are also prepared to switch in response to a price increase, so we decided the impact of the merger on these customers would be small.”
http://www.competition-commission.org.uk/
Alex Ward
GB Oils has appointed Alex Ward as London regional manager. The area has been recently established as a new operating region to better serve customers in the capital.
As part of his new role, Alex will be responsible for leading the business in London, including the Pace Fuelcare barges on the River Thames. His primary objective will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers.
Alex has worked for the company for 12 months, previously as regional manager for GB Oils in the South East.
He said: “As well as providing competitive pricing and continuous improvements to services, my main aim is to ensure we continue to deliver exceptional standards of customer service.”
Simon Willis, general manager at GB Oils, added: “We have no doubt that he will be a fantastic addition to the team and will help deliver our ambitious plans for this new region.”
Topaz CEO John Williamson, former Ireland rugby international, Alan Quinlan, and Rebecca Rushe, Aware’s head of fundraising, pictured at the launch
A major partnership between Topaz and Irish charity, Aware, was launched by former Ireland rugby international Alan Quinlan.
Keyfuels has appointed Laura Balmforth as its new marketing executive.
Laura will be working closely with the company’s management and sales teams to help develop strategies for ongoing business growth, building strong partner and customer relationships and helping to identify new opportunities.
Managing director, Peter Bridgen, said: “It’s an extremely exciting time. Over the last few years we’ve increased our network by more than 50%, providing the largest wholesale priced network in the UK. Our market position has been built up on the strength of this network coupled with our ability to work in partnership with our customers to develop fuel management strategies that make a real difference to their bottom line.
“Laura’s appointment highlights our ongoing investment in people as well as our commitment to providing a first class customer service.”
For the second year running, Keyfuels, which employs over 50 people at its Walsall headquarters, has achieved one to watch status in the Best Companies accreditation scheme.
Peter McCarthy, service and operations director, commented: “This award is very special to us as it is based entirely on staff feedback. We understand that the biggest assets any company can have are its people and we work hard to ensure that we communicate effectively with all staff.”
www.keyfuels.co.uk.
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The world’s largest oil trader, Vitol has teamed up with Marcel Van Poecke, co-founder of Petroplus, to buy the Cressier refinery in Switzerland.
Petroplus administrator, Wenger-Plattner reported last week that Varo Holding SA – the joint venture between Vitol and Van Poecke’s AtlasInvest – had agreed to buy the Cressier plant and will complete the transaction by the end of June. The move is seen as part of the Vitol’s drive to expand into physical assets.
The 68,000 barrel per day plant will resume activities after the handover is completed, added the administrator, dismissing the suggestion that the plant will be converted to storage.
A quality, niche refinery, storage assets and wholesale marketing opportunities
Vitol’s chief executive, Ian Taylor, said that the transaction provides the company with access to a “quality, niche refinery and a supply chain of storage assets and wholesale marketing opportunities.” He predicted that it would become a valuable source of growth for the Vitol Group.
Varo’s main rival for the Cressier plant was strongly rumoured to have been former Russian energy minister, Igor Yusufov, via his investment arm, Fund Energy.
Coryton
Marcel Van Poecke, who founded Petroplus in 1993, and oversaw its operations for 13 years, has also been involved in offering a temporary lifeline at Coryton. Fuel Oil News contacted PwC, administrators for Coryton yesterday and can report that there is no further comment at this time. Bids closed on 2nd April. Gary Klesch is rumoured to be among those interested.
Yesterday a crude oil tanker was heading for Coryton. Does this mark the end of the three month rescue deal or the start of a new one?
Antwerp
Swiss-based trader Gunvor has completed the acquisition of Petroplus’ Antwerp plant in Belgium which will restart in the next few days after a four-month outage
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Concerned that the merger of Total Butler and GB Oils would remove a key competitor to GB Oils; the Office of Fair Trading (OFT) referred the acquisition to the Competition Commission just before Easter.
In England and Wales, GB Oils has 100 depots whilst Total Butler has 40. Both supply a similar range of oil products to domestic, commercial and agricultural customers.
Of particular concern to the OFT is the supply to customers who require deliveries across multiple sites, but whose volumes are too small for them to be viably served by the major oil companies or by oil traders.
“Although there are a large number of oil distributors operating in theUK, three of them stand out in terms of the scale of their networks: the two merging parties and Watson Fuels,” said Amelia Fletcher, OFT chief economist and decision maker in this case.
“A significant number of multiple site, non-bulk customers, who need suppliers with access to such infrastructure, were concerned at the prospect of a merger of GB Oils and Total Butler. We consider that the Competition Commission should look in detail at the impact of the merger on these customers, as well as whether the merger may result in higher prices for customers buying oil products in specific local areas where the parties overlap.”
The Competition Commission is expected to report on the case by 18th September 2012.
New products from TankCare UK (an OTS Group company) include TankStream, a fuel quality and wetstock monitoring system for dispersed fuel storage installations.
Designed to provide real time updates, the system works in conjunction with an integral fuel conditioning system which recirculates and treats the wetstock to prevent microbial growth contamination.
“With higher content biofuels having resulted in greater amounts of water in suspension, fuel quality can very quickly deteriorate if not treated immediately,” says OTS sales director, Steve Gain. “Fleet managers want a more intelligent approach; TankStream allows them not only to check fuel stock availability, but also the fuel’s condition.”
TankStream’s instrumentation will monitor up to eight tanks and eight sensor packs. Tank contents are polled every 20 seconds and the data is automatically uploaded to the internet.
Real time stocks and alarms can be relayed by email and the situation reports streamed to any web browser, either mobile or at any geographic location with internet access. The system can also be scaled up to incorporate the smart control of pumps sets with the ability to reset fuel dispensers remotely via the web.
www.tankcare.eu.com
Kan’to Instruments has recently completed a major installation for Finol Oil, one of the leading lubricant suppliers in Ireland
Dimitri Papaioannou, managing director of Kan’to, told FON: “We’ve now completed the installation of an automatic tank gauging system – using our iLevel gauges and iNTELLIGENTGAUGING software The whole project was very successfully managed by our agents and distributors in Ireland, Re-Antechnology Services, with managing director, Ian Gillespie, playing a pivotal role.”
Liquid storage applications The Kan’to iLevel console was developed as a solution for inventory and alarm management in liquid storage applications. It provides delivery and inventory reports, real-time telemetry and can be accessed using a web-based interface or by computer based software. The console can monitor up to eight tanks simultaneously, and is available with a wide range of probes, providing up to +/- 1mm in accuracy.
This month Dublin-based Finol Oils is celebrating 35 years in business. “We operate 20 bulk lubricant storage tanks ranging in size from 8000 to 42,000 litres,“ said Dominick Purcell, chief executive officer. “We’re very happy with the new Kan’to system. Compared to our older system, it’s greatly assisting us with stock levels and control. RE-AN International Technology Services installed and commissioned the system in a timely and efficient manner.”
Ian Gillespie added: “Up to the installation of the Kan’to system, the company had issues that impacted on their stock control management. To address the problems, all Finol tanks were surveyed and calibrated in association with Fuelling Technology, so that we could specify a complete stock solution. By all accounts, Finol are very pleased with the stock solution provided.”
www.kanto.co.uk
Webinar with Dimitri Papaioannou: https://fuelondev.wpengine.com/2012/04/kantos-real-time-tank-gauging/
Free software updates have been introduced for Dunraven’s Apollo Smart heating oil energy monitor. “There’s nothing worse than buying technology today, only to find it’s out of date tomorrow,” said Gerry Jones. “That’s why our customers can be assured that no matter when they purchase their monitor, it can always be running the very latest device software.
“Downloading the software updates couldn’t be easier. Simply download and install the update and device drivers from the Apollo website, plug in the monitor’s USB cable to your computer and the software will be installed in minutes. Apollo Smart allows consumers to monitor heating oil consumption, fuel costs and CO2 emissions on a daily, weekly, monthly and annual basis.”
www.dunravensystems.com
Wakefield-based tanker manufacturer, Tasca Tankers is on track for further expansion after acquiring the business and assets of Maidment Tankers.
“It was with regret that we learned of the difficulties faced by Maidment Tankers, a long established family business,” said Shaun Harte. “With a steadfast reputation for quality and service in the south of England, which mirrored Tasca’s reputation in the North, it was a natural move for Tasca to acquire Maidment from the administrator.
“The intention is to continue with tanker sales, service, commercial painting and repair at the Maidment facility in Littlehampton. This should bring the well-recognised qualities, that Tasca and Paint Shop Northern are renowned for, to the existing and, hopefully new, customer base in the south of England.”
Plans are also in the pipeline to boost the Wakefield workforce by approximately 20 new recruits this year. The company will also honour its annual commitment to Wakefield College, taking on three new apprentices.
Established in 1996 and now employing 100 staff at the company’s Diamond Business Park headquarters, Tasca Tankers makes tankers for a wide range of industries. The company’s sales turnover has increased from £4.6m in 2009 to an estimated £7m last year and staff levels rose by 50-60% during the same period. Tasca’s customers include Otley-based Tate Fuel Oils, Peak Fuels from Derbyshire and GB Oils.
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IFC Inflow celebrates its 25th anniversary this year. Founded in 1987 as Industrial Flow Control Ltd, primarily to sell tanker loading and process metering equipment, the company is now run by operations manager, Kiran Shaw and technical director Greg Clarke. Both agree that 25 years in business is a real milestone and, to be still growing and developing is key to its success.
Engineering solutions
Initially IFC Inflow was a distributor of flow meters and loading arms. The company now provides total project solutions including design, fabrication and installation services along with a range of standard products direct from stock. Kiran says: “In 1987 we only sold products that were made and designed by other companies. As customers reduced their in-house engineering staff, it became apparent that we needed to offer engineering solutions, as well as standard products. We invested heavily in our own design and engineering facilities and developed equipment better suited to our customers’ needs”. Moving from a standard equipment distributor to a total solution provider – we listened to customer requirements, provided purpose-designed solutions incorporating existing products, and designed or sourced new products to match customer needs.
IFC Inflow also pioneered the use of bottom loading skids in the AD depot market. The company’s first unit was built in 1994 and since then, over 100 units have been supplied in the UK alone. IFC Inflow has also expanded into tanker loading, fuel bunkering and tanker safe access sectors.
The company has doubled in size. Its customer base has grown to over 2000 clients with many blue chip companies; export business has tripled. “Over the past 25 years we’ve gained a unique insight into the specific needs of our customers. This enables us to provide the most effective solution to any tanker loading or safe access requirement. We look forward to what the future holds,” adds Kiran.
www.inflow.co.uk
Konnect, a new range of value for money loading arms, developed to handle the safe transfer of petroleum products to and from road and rail tankers, has been launched by Emco Wheaton.
“The range delivers exceptional quality at highly affordable prices. Included are top and bottom loading arms, with all versions featuring advanced designs that are poised to change market expectations across the globe,” says Walter Spitzner, manager for distribution loading arms.
“We’ve reduced our costs considerably, without compromising quality,” added Walter. “We’ve been able to pass these savings on to our customers, but more importantly, we’ve been able to achieve much faster production targets resulting in shorter delivery times.”
Manufactured at the company’s factories in Kirchhain, Germany and Houston, USA, each product is designed to deliver the lowest possible whole life cost to provide long term value for money. This has been achieved with added value engineering and the addition of the company’s D2000 swivel joints.
Alpeco has launched its latest range of MF400 and MF800 truck metering systems. The new multifunctional two and three inch systems see the original DMX gas separator, superseded by the latest technology, LC Sound. Measuring Instruments Directive (MID) approved, the compact LC Sound mounts directly to the inlet of the LC measuring chamber and uses ultrasonic energy to continuously monitor for the presence of air or gas in the fuel being delivered. If these elements are detected, LC Sound signals the metering system to slow or momentarily stop the flow, until the air or gas has been evacuated through the inbuilt air/gas release.
www.alpeco.co.uk
Next year, the Morrow family celebrates 100 years of oil retailing in Lisburn, Northern Ireland. And throughout the decades, the business, which eventually became Morrow Fuels, has proudly guarded its family ownership and has striven to live up to its long-established reputation – to go the extra mile to meet customers’ needs; Peter Clayton reports
“Oil retailing has been in the family since1913, when Colin Morrow’s great aunt sold paraffin from her village shop for lamps and heaters,” says a member of the most recent generation of Morrows to run the business, Jonny. “Her shop was in the exact location still used today as Morrow Fuels’ main depot – at Gravelhill Road, Maze.”
Colin Morrow originally began as an engineer, manufacturing steel oil tanks for the domestic heating market. He saw his natural progression as moving more into the oil market, and bought his first distribution tanker in 1988. As the company became established, Colin’s wife Joan and their three sons – Jonathan (Jonny), Simon and Phillip – all joined the business.
“Because of the housing boom during the 1990s, we enjoyed rapid growth and steadily grew our tanker fleet from one in 1988 to 11 in 2012,” adds Jonny.
The most recent addition to the Morrow fleet is a specially designed 4×4 tanker which can cope with the extremes of weather, and the very worst of terrain.
“Last year’s extreme weather caused so many people in Northern Ireland to go without oil,” explains Jonny. “Houses off the beaten track stayed cold as regular oil tankers just couldn’t get to them. This meant many people had very little heating during one of the coldest winters we have seen in years.”
It was this – combined with the company motto – which prompted Morrow Fuels to invest in their new custom-built vehicle which, claims Jonny, allows the company to deliver fuels whatever the weather and regardless of challenging landscapes.
A convertible oil tanker?
“When we had a press launch for the new truck, with the tagline ‘service you can trust’, we had a great response from the public and customers alike. Of course, Murphy’s Law would have it that Northern Ireland has had virtually no snow or ice this winter, and has even experienced record high temperatures for February! So for next year, the Morrow boys are thinking about building a convertible oil tanker!” jokes Jonny.
As is shown by this latest vehicle, the Morrow family know their tankers. In fact, to complement the rest of the business, Morrow Fuels diversified into tanker building some 20 years ago when it became apparent to the family that there was an urgent need for quality built oil tankers in the principality, in fact they were the first company in Northern Ireland to build their own tanker barrels from scratch. This part of the business has recently enjoyed a record number of sales, and Jonny – an engineer by background – is looking forward to another good year. Just about to go live is their new website
www.morrowtankerservices.com.
As distributors, Morrow Fuels operates within a 30 mile radius of its main depot at Maze, close to Lisburn, with satellite depots in Belfast and Bangor. Around 80% of company business is supplying domestic customers. The remaining 20% is split evenly between agricultural and commercial customers.
The state of the industry
Asked about how he perceives the current fuel distribution industry in Northern Ireland, a thoughtful Jonny replied: “The biggest problem we can see with the current market is that anyone can buy a tanker for around £5000. Along with a pay-as-you-go mobile phone, they can start an oil distribution business – undercutting rates and poaching valued customers.”
Jonny is convinced that the Irish distribution industry is currently going through its hardest period of trading for decades. “Seasonal temperatures are too high, oil prices are still rising, and the economy is struggling more than ever,” he says. “Added to this, margins are getting tighter and tighter, vehicle fuel and insurance costs are all on the up, and more and more one-man-band operators are getting into the business with little or no knowledge of the industry.
“But on a brighter note,” he concludes, “We’re still experiencing some growth… not on the scale it once was, but in a diminishing market, threatened by natural gas and renewable energies, any growth at all has to be considered good. We find that, although customers always want cheaper and cheaper fuel, they still appreciate a good quality product and ‘service you can trust’… after all, we do go the extra mile to meet their needs.”
With a company slogan, “more smiles per gallon”, Northern Ireland based Thompson Fuels has established a reputation as a happy and helpful team, willing to go the extra mile (and smile!) for customers.
The company has evolved during the years. It was established in 1968 to provide a coal delivery service. Ten years later, the family business diversified into oil sales, starting off with one oil delivery lorry and one employee. Thompson Fuels was registered as a limited liability company in 1993, although it remained a truly family-run business – as it is today, with three sibling directors: Mark, David and Aaron Thompson.
Since then, the customer base has steadily grown. The company now has 15 tankers and a full-time staff of 30, operating out of five depots. For its domestic customers alone, Thompson has an annual throughput of more than 20 million litres.
“We strive to maintain a modern fleet of lorries with well trained, motivated staff,” says Aaron Thompson. “As you can imagine, our business has changed considerably over the years – from coal and bottled gas deliveries being our original main lines of business, to oil fired central heating fuels taking over. However, how things change… coal sales have significantly increased again in recent years.”
Although the company focuses on domestic customers, Thompson also deals with both commercial and agricultural clients. And the Thompson “patch” is considerable – covering an approximate 20 mile radius from each of its five depots, located in Tandragee, Portadown, Banbridge, Markethill and Fintona, as well as Belfast and the surrounding areas.
Responding to market demand, Thompson has also diversified into selling lubricants and has recently become a Maxol lubricant agent. “We also retail decorative garden stones for flower beds and rockeries during the quieter summer months,” continues Aaron. “And we still maintain a successful coal sales department, which we have developed and grown over the years – from importing and packing our own stock, to supplying retailers and carrying out our own delivery and cash ‘n carry services which we operate out of all our depots.
Emergency run-out service
“Our depots also operate an ‘emergency run-out drum’ service, which has proved to be very popular with the public; they tell us this is very convenient as they can get as much or as little as they need.”
It has always been part of the company’s ethos to provide the service – and a little more – expected by its customers. “As distributors with a reputation for providing a dependable service to the public, we have to be able to adapt and cope with anything – especially when demand is at its highest during the winter months,” says Aaron. “With a reliable, competent staff – and storage capacity in excess of one million litres – we are well equipped to meet public demand, regardless of winter weather conditions.
“We always try to encourage our customers to buy early in the winter, before the cold weather sets in. However, it doesn’t always happen. We find that most customers now tend to buy as and when they need it.”
Aaron believes that the oil distribution industry has changed over the years, becoming a lot more competitive due to the constant fluctuation of oil prices. But, with so many years experience in the sector, he is philosophical about the future. “As a business, we believe you have to be competitive, but not at the cost of profitability,” he says.
“We don’t get distracted by what our competitors are doing… we are focused on our own business and concentrate on giving our customers top quality fuel and service at the best possible price! And by doing exactly that, we provide our customers with more smiles per gallon!”
www.thompsonfuels.com
Last winter’s weather conditions throughout the island of Ireland were unprecedented with sudden and long-lasting frozen spells – accompanied by thick snow and treacherous road conditions. In the thick of it – literally – were home heating fuel distributors who struggled, but in most cases doggedly persevered to provide a lifeline for customers in some of the most remote and wild locations
“This year, we’re getting better prepared,” says Patrick Doherty, director of Doherty Oils which operates a fleet of five oil delivery tankers, distributing fuel throughout the Tyrone and Fermanagh areas.
“If we’ve learned any lessons from last year, it would be to have all of our trucks psv’d and well maintained.
“We’ve also decided to put our own 40 foot lorry on the road to haul fuel direct from the terminals,” he explains. “We have an excellent haulier – Lisburn-based Pettrans – who bring 95% of our fuel at the moment, but in the busy period even they find it very difficult to care for all customers, as any haulier would.
Competitive prices
“We’ve installed two extra 55,000 litre kerosene tanks and have just got permission to store our own petrol underground, so that we can supply the local filling stations direct from our depot in Omagh. This is all at a cost, so we‘re hoping for another winter like last year!” he adds. “But our strong relationship with a range of major oil suppliers ensures customers consistently receive highly competitive prices.”
Big or small, all fuel distributors throughout Ireland learned important lessons from last year’s experience. Topaz – with the largest network of home heating oil distributors in the country, and a fleet of more than 250 tankers – is no exception.
The company is incorporating many of those lessons into its strategic planning for the 2011/2012 winter period. Marketing activity will focus around reminding people to order early, and the company’s product offering has diversified to cater for both the worsening economic and weather climates.
Topaz Thermal is a premium home heating oil with a special additive to reduce boiler breakdowns and provide 11 days longer per year from the oil. Emergency 20 litre drums are being made available to purchase from company depots, and small delivery amounts will be available.
“Last winter’s weather conditions called for some very timely and crucial response measures from the Topaz Local Fuels team,” Adrian Gallagher, Topaz home heat business manager, told Fuel Oil News. “Many customers did not realise that their oil tanks were so low and the increased demand during the cold snaps put pressure on oil companies, meaning many people had to endure the harsh cold while they waited for delivery.”
Priority attention
However, the company’s sales team realised that some circumstances needed more immediate attention than others. At the time of order, each customer was therefore asked about their level of need, and deliveries were scheduled based upon this information. Pregnant women, people with disabilities, and houses with older people and small children were given priority. Others were asked to wait no longer than 48 hours.
For those who had to wait, the Topaz team delivered drums of 20-50 litres to tide them over until full delivery could be made. Priority was also given to organisations who deliver essential services to keep the country running in spite of the weather, such as the army, defence forces and the Dublin Airport Authority.
The company’s ‘need-based’ scheduling policy certainly came into play when the Dublin Airport Authority reported that their snow ploughs had run out of fuel, and unless delivery could be made within a few hours, the airport would be forced to close. Even though Topaz Local Fuels were fully booked for 48 hours, they quickly identified and re-scheduled non-urgent customers and delivery was made to Dublin Airport within an hour.
Back at Doherty’s; alongside its traditional fuel distribution service, the company is also planning to expand its coal and firewood business, which, says Patrick Doherty, proved profitable last year. “As one of the most progressive fuel distributors in the North West of Ireland, we’ve made our contingency plans for another winter of freezing conditions, and are ready for anything that’s thrown at us!”