Direct Energy Delivers Substantial Operating Profit

HOUSTON, July 26, 2012 /PRNewswire/ -- Direct Energy, one of North America's largest competitive energy and energy-related services providers, today announced an operating profit for the first six months of 2012 of US$263 million. The company saw year-over-year revenue decrease from US$5.0 billion in 2011 to US$4.6 billion in 2012. Direct Energy is the North American subsidiary of Centrica plc (LSE: CNA). Centrica reported half-year 2012 revenues of £12 billion ( US$19.4 billion) and earnings of £767 million ( US$1.2 billion).

Direct Energy's profit was driven by sustained sales growth in the company's residential and business customer segments, particularly in the competitive retail markets in Texas and the U.S. Northeast, as well as improvements and efficiencies in its upstream and downstream operations. In addition, the recently completed upstream gas, home energy services and retail gas and power acquisitions helped improve sales growth and the company will be building on these acquisitions to deepen customer relationships by enhancing propositions to the customer through joining our services and energy products. The company experienced strong organic growth in customer numbers alongside higher levels of customer service, having entered several new markets through both the residential and business lines of business across North America since the start of 2012.

"Direct Energy delivered a solid first half, continuing to invest for growth across the business," said Chris Weston, President and CEO of Direct Energy.  "Despite the challenges related to gas prices and mild weather during the first half of the year, the momentum gained from our recent acquisitions has provided further capacity for growth, operational improvements and cost efficiencies, which positions us well to deliver on our year-over-year profit growth targets."

First Half 2012 highlights from Direct Energy's lines of business include:

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