LCC Group buys oil terminal in multimillion-pound deal

Cookstown-based energy provider LCC Group has taken another ambitious step in securing in future growth with the buy-out of its partner in a state of the art oil terminal in a multi-million pound deal backed by Danske Bank.
By The Newsroom
Published 25th Oct 2016, 06:00 GMT
Updated 25th Oct 2016, 20:52 GMT
Danske Banks Ciaran McLaughlin is pictured with LCC directors Dan Loughran and Michael O Loughran at the companys oil terminal at Foyle Port at Lisahally in Co LondonderryDanske Banks Ciaran McLaughlin is pictured with LCC directors Dan Loughran and Michael O Loughran at the companys oil terminal at Foyle Port at Lisahally in Co Londonderry
Danske Banks Ciaran McLaughlin is pictured with LCC directors Dan Loughran and Michael O Loughran at the companys oil terminal at Foyle Port at Lisahally in Co Londonderry

LCC Group raised eyebrows in 2005 when it partnered with Norwegian oil giant Statoil ASA in a joint venture called LSS Ltd to build the oil terminal in Maydown, Co Londonderry.

The latest transaction sees the group assume sole ownership and control of the terminal.

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Since the terminal acquisition completed, LCC Group has secured an Aviation Fuel supply contract with Q8 Aviation to supply EasyJet at Belfast International Airport.

Over the term of the contract, 135 million litres of Aviation Fuel will be supplied from the LSS terminal.

In order to meet the stringent quality assurance standards for aviation product storage and transportation, LCC Group have invested £1.5m on the installation of new highly advanced plant and equipment at the terminal.

The independent, family-owned LCC Group was established as a coal business in 1986 and has since grown hugely, diversifying into oil, electricity and gas distribution.

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The company reported turnover of £544m in 2015 and now employs more than 180 staff. It has also established interests as far afield as Spain, Belgium and Colombia.

Director Dan Loughran said the acquisition of the terminal is strategically important for the company, as it will give it a significant competitive advantage.

“Logistically, transporting oil is expensive,” he said.

“It eats into profit margins, impacts on the environment and ultimately increases costs for customers.

“The LSS terminal is used to import and store oil to allow for smooth, efficient transport to markets in NI and ROI. By owning the terminal outright, LCC Group will be able to control our costs and pass those savings on to customers.”

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In a process where the time frame for completion of the deal had been a critical factror, he said the support from Danske in terms of the speed of credit approval, structure of facilities and the overall level of support had been “essential to the success of this acquisition”.

Ciaran McLaughlin, corporate banking manager at Danske said LCC Group was an excellent example of a locally-owned company demonstrating its ambition to grow.

“LCC Group is a prime example of the type of trading businesses we at Danske are keen to support in their growth journey.

“The company has a strong track record of investment and Danske Bank was ready to provide support when the company was presented with this opportunity to further strengthen its business in the North West.

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“These types of high value infrastructure assets are normally owned by FTSE 100 corporations, not family-owned companies, so this transaction really demonstrates the scale of LCC Group’s ambitions for the future.”

Related topics:Danske Bank