Essent Energie, a major European utility, has been awarded the 2006 Best In-House Software System by EnergyRisk Magazine for its gas optimization application developed in partnership with Sapient (NASDAQ: SAPE). Essent worked with Sapient to create a comprehensive energy trading and risk management system unparalleled in the industry in terms of its size, complexity, and long-term value. The system includes a host of innovative solutions, one of which is a gas optimization solution that paid for itself within 24 hours of going live.
"We are thrilled to have been recognized by EnergyRisk for our internal software system," states Gareth Griffiths, Senior Vice President, Trading at Essent. "Partnering with Sapient to develop a system that can measure the intrinsic value of all of our holdings enabled us to increase the overall worth of the entire portfolio. Not only did the project contribute to significant operational improvements, but it also added tremendous strategic value by helping us better target customer segments."
The gas optimization solution gave Essent real-time visibility into its entire gas portfolio, from long- and short-term contacts to physical production and delivery. The innovative system resulted in cost savings to Essent of $4 million within 24 hours, literally paying for itself the first day it went live. The system is also largely credited for extended growth within the company, which has doubled its earnings, before tax and interest, each year since implementing the new system.
"Our work with Essent underscores our commitment to delivering innovation to our clients," said Milind Godbole, Vice President and Managing Director at Sapient. "We worked with Essent to change their business model so the company could assess the market holistically and react quickly to optimize their holdings. It is this type of business-altering partnership that Sapient aspires to have with all our customers."
"Every year, the EnergyRisk Awards recognize talent, innovation and enthusiasm in the energy and risk management industry," said Stella Farrington, editor, EnergyRisk. "Sapient and Essent's work on this ambitious software project allows integration of the utility company's physical and financial positions and operates across every area of the gas business, from long- and short-term contracts to physical production and delivery."
Essent N.V. is the largest vertically integrated utility company in the Netherlands with turnover of EUR 7.4bn in 2004. The company was formed in December 1999 through the merger of the PNEM/MEGA Groep N.V. and the EDON Groep N.V. and is active in electricity, gas, waste management and cable activities in the Netherlands. Outside the Netherlands, Essent has a 51% controlling interest in Stadtwerke Bremen AG, a municipal utility in northern Germany. Via Winkra-Energie GmbH in Hannover it has a leading position in the area of wind energy in Germany. In the Belgian energy market Essent is active through Essent Belgium. The company employs 12,003 people.
Sapient helps clients innovate their businesses in the areas of marketing, business operations, and technology. Leveraging a unique approach, breakthrough thinking, and disciplined execution, Sapient leads its industry in delivering the right business results on time and on budget. Sapient works with clients that are driven to make a difference, including BP, Essent Energie, Harrah's Entertainment, Hilton International, Janus, National Institutes of Health (NIH), Sony Electronics, the U.S. Marine Corps, and Verizon.
Founded in 1990, Sapient is headquartered in Cambridge, Massachusetts, and operates across North America, Europe, and India. More information about Sapient can be found at www.sapient.com.
Sapient is a registered service mark of Sapient Corporation.