Catching Up with Energy One

I had a call with Shaun Ankers, CEO of Energy One, last week to catch up on the news from the leading ETRM vendor in Australia. The first piece of news is that Energy One has consolidated its market leadership in Austalian power and gas markets via the acquisition of Creative Analytics on May 31st, 2017. Creative Analytics sells energy trading and market analytics software to customers in Australia, New Zealand and Singapore and its two key products are NemSight and SimEnergy. It also offers other trading and alerting software tools and has 60 customers and 900 registered users and its software is used by most energy companies in Australia. Shaun told me that NemSight is an analytical tool specifically for the NEM and is available as software as a service with around 800 users. “It is a useful addition to EnergyOne’s product set,” he told us. Meanwhile, SimEnergy is an ETRM package aimed at windfarms, generators, traders, and retailers that currently has 12 customers. The acquisition and addition of these two products has several benefits including building a combined business with more than 70 customers including all the major energy companies in Australia, two in New Zealand and three in Singapore. Additionally, EnergyOne will now see anticipated recurring revenues of more than 70% of annual revenues going forward, an enhanced opportunity to cross-sell/bundle/package offerings to existing customers and greater leverage of future development in gas/oil markets through multi-commodity offerings to a wider range of customers.

Energy One Limited purchased Creative Analytics Pty Ltd for a price of $3,000,000, paid in cash and equity for 100% of the shares in Creative Analytics Pty Ltd from its founder, Mr Phil Sheppard.

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The transaction will be funded as follows:

• $2,700,000 in cash comprising $1,750,000 from a debt facility provided by Westpac Banking Corporation, the remainder from cash reserves; and
• $300,000 in EOL equity issued at 38 cents per share on 31/5/17.

Westpac is also providing EOL with a $250,000 working capital facility.

In another piece of news, Mr. Ankers could also tell us more about a deal whereby UK energy software vendor, Dunstan Thomas, will resell Energy One’s new product – EnergyFlow. EnergyFlow is a business process automation and management platform that has been specifically designed to support day-to-day functions for electricity, environmental products, carbon and gas trading operations, reporting and settlements. He hopes to conclude another reseller agreement in Europe soon for the product as they close in on their first sales of software.

DTE (www.dthomas.co.uk/content/energy/) is a leading player in the provision of software for physical energy trading in the UK. The company’s Genstar4 platform is used to trade some 28% of the UK’s electricity into the National Grid. Whilst Genstar4 offers similar functionality to EOL’s EnergyOffer platform, the partnership intends to leverage DTEs expertise and customer access to market EOL’s other products, particularly the company’s business automation platform (EnergyFlow) and contracts management system (EnergyOneTrading). Mr. Ankers, commented in the recent press announcement regarding the reseller agreement that “The UK market is well served by existing software performing a function similar to EnergyOffer”. Instead, our goal is to work with DTE to offer other, synergistic solutions to (among others) DTEs existing customer base. For example, these customers can also be offered a contracts trading system, such as EOT or can realise efficiencies of trading automation using our EnergyFlow platform.”

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