Octopus Energy Group results for FY21-22: Revenues up 110%, from £2.0bn to £4.2bn Adds +1.3m retail customers, growing to 3.4m globally
- Retail revenue doubled from £1.9bn to £3.9bn (+106%)
- Group made £141m operating loss due to the decision to absorb £150m of wholesale cost increases on behalf of customers
- Tech arm, Kraken, grew revenue from £69m to £115m (+66%) and gross profit from £66m to £110m (+68%)
- Octopus Energy named Which? Recommended Provider for the fifth year in a row in 2022 (and sixth at time of publication in 2023) and remains the most awarded energy company in the UK, maintaining best-in-class Trustpilot ratings despite the energy crisis
London, 1st February, 2023 - Green energy pioneer Octopus today announces its results for the financial year 2021-22, which ended on 30 April 2022.
The Group continued its relentless focus on customer service, finding innovative and meaningful ways to support its customers, and was named Which? Recommended Provider for the fifth year in a row in 2022 (and now sixth at time of writing, in 2023), remaining the most awarded energy company in the UK, and maintaining best-in-class Trustpilot ratings despite the energy crisis.
The Group’s financial robustness and outstanding operational capabilities have allowed its UK energy retail business to grow dramatically whilst maintaining the same, best-in-class service standards. While the UK retail business posted a net loss of £161 million, this was because it took the decision to hold SVT prices as far below the price cap as possible for as long as possible – the only large supplier to do so. This customer-focused decision incurred over £150m in reduced revenue and earnings. This choice was driven from Octopus’s belief that doing the right thing by customers and society delivers long run value.
This investment in looking after customers when they need it most is only possible because of the company’s financial strength.
The Group’s strength in technology continues to deliver strong economic value, attracting further significant investment and powering global growth. The Group’s tech arm, Kraken, also grew its revenue, from £69m to £115m (+66%) after migrating 7.4m non-Octopus client energy accounts onto Kraken (up 116% from year before). Reflecting this growth in revenue across all business groups, both retail and tech arms saw staff numbers growing, with Octopus Energy doubling the number of customer support specialists and Kraken increasing its team by 73%.
And Octopus’s innovation and expansion into other areas enables it to continue to build the most capable energy transition business globally - with the acquisition of Octopus Energy Generation and its now £6bn of generation assets under management; the coming-of-age of Octopus Electric Vehicles and its direct leasing model; the £10m R&D facility in Slough; and its expansion into 13 new countries.
Octopus continues to drive the global energy transformation agenda, attracting investment from some of the most highly reputed global shareholders - CPPIB and Generation Investment Management, as well as continued support from existing shareholders Origin Energy and Tokyo Gas.
Welcoming the results, Greg Jackson, CEO and founder of Octopus Energy Group, said:
“The team at Octopus Energy Group has worked incredibly hard to support customers through the pandemic and now the energy crisis. They have done so while maintaining first class customer service levels and relentlessly focusing on ways to build towards a cleaner, cheaper, more resilient system – making sure this is the last energy crisis.
“We’ve helped guide industry and governments to navigate the short- and long-term challenges in energy and are playing our part at every level. It has never been more important to build a better, fairer energy system for all and Octopus Energy Group is truly leading the way. We could have made a profit, but now’s not the time - instead we chose to absorb £150m of escalating costs on behalf of customers through prices and support funds, debt-forgiveness and increased service.”
Octopus Energy Group in 2022:
FY21-22 saw the expansion of Octopus Energy Group to several new regions. Retail acquisitions in Spain, Italy and France and entry into Poland, meant that the Octopus footprint expanded to 13 countries in 4 continents in 2022.
The energy market and Octopus Energy Limited in 2022:
The energy market in FY22 saw unprecedented rises in the price of gas and, in turn, wholesale prices for power too. It has – and continues to be – a tumultuous time in energy, driven by the global dependence on fossil fuels, and made even worse by Russia (the world’s largest gas exporter) invading Ukraine.
Right now, more than 7 million households – or 24% of UK homes – are severely struggling to pay energy bills and are either in, or at risk of, fuel poverty. Many more are finding the rising cost of living increasingly difficult to shoulder.
OEL is committed to fair prices that truly reflect the cost of energy that we buy on the market. We made the decision to support customers to the maximum extent possible – even if that meant foregoing short term profit. We’ve invested over £150m to deliver lower prices to customers during the energy crisis, and targeted extra support to those most impacted, including our OctoAssist Fund, electric blanket and Winter Workout campaigns.
FY 2020/2021 Financial Highlights:
- Octopus Energy Group:
- In FY21-22, OEG doubled revenue from £2bn to £4.2bn (+110%)
- Net assets more than doubled (+130%) from £204m to £473m due to equity investment from Generation Investment Management and CPPIB
- Net loss of £141m due to decision to absorb part of the wholesale cost increase on behalf of energy retail customers
- Most awarded energy company in the UK with 50 industry awards achieved (incl. Which? Recommended for the fifth year running)
- Best in class Trustpilot rating maintained despite the energy crisis
- Octopus Energy Limited:
- Increased customers by 54% from 2m to 3.2m and doubled revenue from £1.9bn to £3.9bn (+106%)
- £161m net loss due to the decision to absorb £150m of wholesale cost increased on behalf of customers by charging below the price cap, establishing the Assistance Fund which has seen £5m in payments to customers (increased to £15m at time of writing), and running other support schemes to help customers with their bills
- 40k customers supported by Octo Assist (increasing to 55k at time of writing), our specialist fund to support vulnerable customers
- Doubled number of customer support specialists from 498 to 998 (+100%)
- Kraken Technologies:
- Grew revenue from £69m to £115m (+66%)
- Operating profit of £49m (+10% compared to the FY21)
- Migrated 7.4m energy accounts onto platform (up 26% vs. number migrated in prior year) including from licences such as EON, serving over 16m accounts at the end of the FY22
- 370,000 customers migrated per week at peak times during E.ON migration
- Expanded to 9 countries and incorporated subsidiaries in Turkey and Japan
- Increased number of UK employees by 73% from 111 to 192
Notes to Editors:
For an overview of Octopus Energy Group and its subsidiary companies, please visit octopusenergy.group
Please note, some of the information in this press release contains interpretations of our audited results, as well as forward-looking statements such as the projected financial performance of Octopus Energy Group, the expected maintenance and development of the Company’s business and our views on the markets in which we operate and the institutions we contract with. We use these statements to give an understanding of our beliefs and opinions in respect of the past, current and future so you can better understand our business.
Interpretations are not audited and should not be used for commercial, risk or other financial decision making. They are to the best of our knowledge and intentions true and fair but may not be updated if we subsequently identify errors. Any updated information will be used in future statements, social media, etc.
Given their forward-looking nature, statements about future expectations do not contain any guarantee as to our future performance; we have no crystal ball, and there will always be circumstances we can't foresee that could affect these forward-looking statements and, more broadly, our actual performance and future financial results. You should know that, if we're wrong in our views, then the projections in this press release could look different come the publishing of our 2022 results.
If our views change from the view set out in these forward-looking statements we won't update these statements. We are, however, always seeking to make energy greener and more transparent, so keep an eye on our social media if you want to know our latest thoughts on our business, the energy industry, and the wider goal of de-carbonisation of the energy industry.
Octopus Energy Press office
About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. It is part of Octopus Group, which is a certified BCorp. With operations in 19 countries, Octopus Energy Group's mission is going global.
Octopus’s domestic energy arm already serves 4.9 million customers with cheaper greener power, through Octopus Energy, Bulb, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, managing a nearly £6 billion portfolio of renewable energy assets throughout the continent.
All of these are made possible by Octopus’s tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to supports 30 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy.
In December 2021, Octopus Energy Group was valued at approximately $5 billion following investments from Generation Investment Management and Canada Pensions Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. It was the company’s third major investment round since launching to the market.
For more information, check out our website.
Octopus Energy Group Limited Financial Results 2022Download
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