|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
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Apr. 28, 2017 08:00 AM EDT Reads: 1,163
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 28, 2017 07:45 AM EDT Reads: 1,537
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 28, 2017 06:45 AM EDT Reads: 1,543
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Apr. 28, 2017 06:45 AM EDT Reads: 1,100
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 28, 2017 06:30 AM EDT Reads: 1,394
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 28, 2017 06:15 AM EDT Reads: 1,282
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, will discuss how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He will discuss how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Apr. 28, 2017 06:00 AM EDT Reads: 4,397
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Apr. 28, 2017 05:15 AM EDT Reads: 2,378
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
Apr. 28, 2017 04:30 AM EDT Reads: 2,183
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Apr. 28, 2017 03:15 AM EDT Reads: 919
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Apr. 28, 2017 03:00 AM EDT Reads: 6,251
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Apr. 28, 2017 02:30 AM EDT Reads: 795
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Apr. 28, 2017 01:15 AM EDT Reads: 8,976
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Apr. 28, 2017 01:15 AM EDT Reads: 9,272
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Apr. 28, 2017 12:45 AM EDT Reads: 1,693