|By PR Newswire||
|February 20, 2014 02:15 AM EST||
HOUSTON, Feb. 20, 2014 /PRNewswire/ -- Direct Energy, North America's largest competitive energy and energy-related services company, today announced gross revenue for the full year 2013 of US $11.4 billion (£7.3 billion), an increase of 28 percent, and an operating profit of US$436 million (£276 million). Direct Energy is the North American subsidiary of Centrica plc (LSE: CNA). Centrica reported full year 2013 revenues of US$41.6 billion (£26.6 billion) with an operating profit of US$4.2 billion (£2.7 billion).
For the full year 2013, Direct Energy reported that profits fell 11% from US$492 million (£310 million) for the full year 2012, primarily due to lower margins in our commercial and industrial energy supply business and increased competition across most of our markets. The operating profit in 2013 includes US$21 million of integration costs and US$32 million of additional customer amortization related to the Hess Energy Marketing acquisition announced in July.
Badar Khan, President and CEO of Direct Energy, said: "Direct Energy is poised for significant growth as we further integrate Hess Energy Marketing, continue accelerating residential customer growth via our digital platform from the Bounce Energy acquisition, and introduce innovative products and services across our energy and home services offerings. Despite competitive pressures and rising gas and power prices impacting our margins, we operated more efficiently, and grew our customer base to deliver significant, albeit slightly reduced, profit. We also saw impressive customer growth in most of our businesses."
Direct Energy reorganized in late 2013 creating a Chief Operations Officer position focused on reducing costs through operational synergies. The company is also bringing creative products and services to market to drive customer growth. Additionally, Direct Energy recently completed the disposal of three Texas-based power stations, sold to Blackstone in December for US$687 million (£420 million).
In 2014, cost competitiveness and customer innovation will be key priorities. The home services business will continue to see organic growth in its protection plan offering and will also begin a transition to a single operating system. A new residential energy billing platform will launch in Alberta, and new consolidated call centers in Phoenix and Tulsa already are generating efficiencies. Building on innovations, such as the 'Power to Go' prepaid and 'Free Power Saturdays' products, Direct Energy recently launched new mobile web-enabled smart thermostats in Texas and Canada, and expects to continue to expand our product and services offerings across energy and services.
"We are taking bold steps to leverage efficiencies across our lines of business and through further integration of acquisitions, so that we can deliver customer-engaging innovations that add value, convenience and more options for our customers," said Khan.
Full year 2013 highlights from Direct Energy's lines of business include:
Direct Energy Residential
- Gross revenue increased to US$3.948 billion (£2.517 billion).
- Operating profit for the business increased to US$258 million (£$163 million).
- The total number of residential energy customers declined slightly in 2013 to 3.4 million, as Direct Energy ceased renewing or signing new customers in Ontario due to energy policy changes, and as a result of increased competition in Texas and the U.S. North East
- The successful integration of Energetix and NYSEG Solutions acquisitions resulted in an increase in profitability in the U.S. North East. In Texas, sales of the prepayment product, Power to Go, increased 30 percent.
- The acquisition of Bounce Energy, added 80,000 accounts to Direct Energy's Texas business, and, importantly, provided a leading digital and e-commerce platform for marketing new product innovations over time.
Direct Energy Business
- Gross revenue increased by 52 percent to US$6.6 billion (£4.2 billion) due to higher wholesale commodity prices on retail prices and increased sales.
- Operating profit for the business declined 36 percent to US$122 million (£77 million) from US$192 million (£121 million) in 2012. The operating profit in 2013 includes US$21 million of integration costs and US$32 million of additional customer amortization related to the Hess Energy Marketing acquisition announced in July.
- Operating margin fell to 1.8 percent (2012: 2.8 percent).
- The acquisition of Hess Energy Marketing was completed November 1, helping drive a more than doubling of gas volumes to 1,839mmth (2012: 793mmth). Electricity volumes increased 24 percent to 63.9TWh (2012: 51.4TWh).
Direct Energy Services
- Gross revenue increased seven percent to US$890 million (£$570 million), primarily due to increased sales from owned stores and franchise operations.
- Operating profit increased to US$57 million (£$36 million) from US$51 million (£33 million) in 2012.
- Market share grew in 2013; 293,000 accounts were added in part resulting from the acquisition of AWHR, with 80,000 residential customers in the U.S. Midwest, Northeast, and Florida.
- AWHR provides expanded products and services offerings, including water heater rentals, along with heating, air conditioning, plumbing, and electrical services.
- The Home Warranty of America acquisition in 2012 also produced additional accounts, with 100,000 current whole-home warranty plans in effect, up from 70,000 at the time of acquisition.
Notes: The results reported in British pounds are expressed in U.S. dollars (based on monthly average FX rates) except where noted. For reference average full year rates are: For 2013: £1 = US$1.5650; 2012: £1 = US$1.5896;
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related services providers with six million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 U.S. states plus the District of Columbia and 10 provinces in Canada. To learn more about Direct Energy, please visit www.directenergy.com.
SOURCE Direct Energy
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
Jul. 6, 2015 07:00 PM EDT Reads: 918
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...
Jul. 6, 2015 06:15 PM EDT Reads: 1,897
SYS-CON Media announced today that CloudBees, the Jenkins Enterprise company, has launched ad campaigns on SYS-CON's DevOps Journal. CloudBees' campaigns focus on the business value of Continuous Delivery and how it has been recognized as a game changer for IT and is now a top priority for organizations, and the best ways to optimize Jenkins to ensure your continuous integration environment is optimally configured.
Jul. 6, 2015 05:30 PM EDT Reads: 973
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
Jul. 6, 2015 05:00 PM EDT Reads: 1,885
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
Jul. 6, 2015 05:00 PM EDT Reads: 2,128
"In the IoT space we are helping customers, mostly enterprises and industry verticals where time-to-value is critical, and we help them with the ability to do faster insights and actions using our platform so they can transform their business operations," explained Venkat Eswara, VP of Marketing at Vitria, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 6, 2015 04:30 PM EDT Reads: 502
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgenthal...
Jul. 6, 2015 04:15 PM EDT Reads: 1,526
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York
Jul. 6, 2015 03:45 PM EDT Reads: 1,731
In his session at 16th Cloud Expo, Simone Brunozzi, VP and Chief Technologist of Cloud Services at VMware, reviewed the changes that the cloud computing industry has gone through over the last five years and shared insights into what the next five will bring. He also chronicled the challenges enterprise companies are facing as they move to the public cloud. He delved into the "Hybrid Cloud" space and explained why every CIO should consider ‘hybrid cloud' as part of their future strategy to achie...
Jul. 6, 2015 03:00 PM EDT Reads: 1,776
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 6, 2015 03:00 PM EDT Reads: 1,777
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Jul. 6, 2015 03:00 PM EDT Reads: 3,023
"The idea of polyglot persistence is you have to apply the right database for the job - you always have to have many different databases in play. We offer that whole system as a service," explained Raj Singh, Developer Advocate for IBM Cloud Data Services, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 6, 2015 03:00 PM EDT Reads: 786
SYS-CON Events announced today that WHOA.com, an ISO 27001 Certified secure cloud computing company, participated as “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which took place June 9-11, 2015, at the Javits Center in New York City, NY. WHOA.com is a leader in next-generation, ISO 27001 Certified secure cloud solutions. WHOA.com offers a comprehensive portfolio of best-in-class cloud services for business including Infrastructure as a Service (IaaS), Secure Cloud Desk...
Jul. 6, 2015 02:45 PM EDT Reads: 958
SYS-CON Events announced today that Intelligent Systems Services will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ ...
Jul. 6, 2015 02:15 PM EDT Reads: 1,070
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Jul. 6, 2015 02:15 PM EDT Reads: 1,851