Peter Dixon is the chief executive of natural gas distribution company Kellen, which operates under the Phoenix banner. Since 1996 Phoenix has been successful in establishing natural gas as a brand new product to an existing market.
The company is now the largest natural gas distribution and gas services business in Northern Ireland, and employs more than 250 staff. In 2011, it had a turnover of nearly £128 million, and operating profits of £20 million.
It aims to grow gas penetration in Belfast from circa 50 per cent to levels seen in Great Britain (85 per cent) as well as potential opportunities for expansion into new licensed areas. This will require private investment from homes and businesses in the region of £500 million.
Dixon began his career as an engineer in 1976 with the Gas Corporation in Liverpool, was fast-tracked through the management hierarchy and played a key role in the break-up of British Gas in the early 1990s. Having joined Phoenix Natural Gas in its start-up phase as commercial director in February 1997, he was appointed to the board as CEO in 2000. Dixon is a Commissioner of Belfast Harbour and, since its inception in 2005, has been Chairman of the Energy for Children Charitable Trust.
What moment or deal would you identify as the "game changer" for the company?
Becoming a plc through a reverse takeover allowed us to step out of the shadow of our previous owners and drive ahead. This led to private equity ownership and eventually an investment grade rating which gave us access to investment grade bond debt. We changed ownership from a private tripartite Anglo-American joint venture, to a plc and then to private equity ownership over a period of three years.
What is your greatest business achievement to date?
Walking down any road in half of Northern Ireland and seeing homes and businesses enjoying natural gas as if it had always been there. Developing a new product and a new market which people now take for granted in a short period of time is very humbling.
Do you plan to expand your operations into new regions within the next 12 months?
Yes we do. We are currently drafting plans to bid for a further £400 million of investment potential by extending natural gas to the areas adjacent to the two current licence areas and by purchasing Firmus Energy's assets through the BGE asset sale process. We are focused on raising further significant capital for expansion, refinance and acquisition opportunities, and we will continue to penetrate all the customer sectors in any new areas where we can win new licences.
Were there any early signs that you would eventually follow an entrepreneurial path?
No – I am a servant of others. However, I have been given the privilege of working for owners who have let me invest their money in a way which has delivered significant success both as a plc and private company. This has allowed an industry classified business to be entrepreneurial and extremely innovative by simply asking, why not?
What are the biggest challenges you face now?
We still need to double our revenue streams from investment already made. The front-loaded nature of our capital investment demands that we exceed our aspirations and targets going forward.
