Feb. 27, 2013
's largest competitive energy and energy-related services company, today announced an operating profit of
, £331 million) for the full year 2012. Direct Energy is the North American subsidiary of
(LSE: CNA). Centrica reported full year 2012 revenues of
, £23.9 billion) with an operating profit of
, £2.7 billion).
For the full year 2012, Direct Energy reported a 5% increase in profit from
, £312 million) reported for the full year 2011, driven by operational efficiencies across business segments, including the move of the company's North American headquarters to Houston.
Solid growth in residential and small business customers segments due in part to the successful integrations of recently completed acquisitions in the U.S. Northeast including Vectren Source and
-based energy retailers Energetix and NYSEG Solutions, helped offset the planned, gradual exit of the
business and an increasingly competitive commercial industrial segment. Direct Energy's year-over-year revenue decreased 3% from
, £6.1 billion) in 2011 to
, £6.0 billion) in 2012.
, President and CEO of Direct Energy, said: "We saw solid customer gains in the U.S. Northeast region and home energy services segment throughout 2012. Although weakened economic conditions, the operating environment in
and low wholesale prices posed challenges to parts of the business, we were able to achieve organic and acquisitive growth in many of our downstream and upstream segments, and successfully implement operational efficiencies across the business. We are well positioned to continue to build our company to create scale, stability and value for our customers across
Direct Energy also announced today that
has been appointed Managing Director of Centrica's international downstream business with authority over British Gas and all of Direct Energy except its upstream gas assets. Mr. Weston will relocate from
for his new position.
Accordingly, current Direct Energy Upstream and Trading President,
, will succeed Mr. Weston as President and CEO of Direct Energy effective
. Mr. Khan joined Direct Energy in 2003 and has served in several roles at Centrica and Direct Energy including Managing Director of British Gas Business. He is a veteran of the North American retail energy markets having been involved since 1999. His earlier career was spent in management consulting with Deloitte Consulting and KPMG in the US and the UK. He holds an engineering degree from the UK, and an MBA from the Wharton School. Mr. Khan will report to Mr. Weston.
"Direct Energy has enjoyed significant success over the last three and a half years as we have grown our lines of business and increased the company's revenue and operating profit," said Weston. "I look forward to working with
as he takes on the role of running Direct Energy and increases our presence among customers and within the industry in the future."
Full year 2012 highlights from Direct Energy's lines of business include: