Feb. 20, 2014
largest competitive energy and energy-related services company, today announced gross revenue for the full year 2013 of US
(£7.3 billion), an increase of 28 percent, and an operating profit of
(£276 million). Direct Energy is the North American subsidiary of
(LSE: CNA). Centrica reported full year 2013 revenues of
(£26.6 billion) with an operating profit of
For the full year 2013, Direct Energy reported that profits fell 11% from
(£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
of integration costs and
of additional customer amortization related to the Hess Energy Marketing acquisition announced in July.
, 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
-based power stations, sold to Blackstone in December for
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
, and new consolidated call centers in
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
, 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.