Direct Energy Delivers Solid First Half Operational Performance

Operating Profit Up Four Percent for the First Six Months of 2013 
HOUSTON, July 31, 2013 /CNW/ - Direct Energy, North America's largest 
competitive energy and energy-related services company, today announced 
operating profit of $255 million for the first six months of 2013. The company 
saw year-on-year total revenue increase to $4.931 billion from $4.371 billion 
for the same period in 2012, reflecting volume growth and higher wholesale 
prices. Direct Energy is the North American subsidiary of Centrica plc (LSE: 
CNA), a leading integrated energy company. Centrica reported first half 2013 
revenues of £13.7 billion (US$21.085 billion) and earnings of £767 million 
(US$1.185 billion). 
(Logo:   http://photos.prnewswire.com/prnh/20121004/MM87276LOGO) 
Badar Khan, President and CEO of Direct Energy, said: "Direct Energy delivered 
strong operational performance in the first half of the year, against a 
backdrop of rising gas and power prices, which resulted in some narrowing of 
margins. We have seen an increase in business supply volumes compared to 2012 
and material improvements in the new housing market in the U.S., which have 
contributed to higher revenues in our residential construction division of 
Direct Energy Services." 
"With our announced acquisitions of Hess Energy Marketing yesterday, Bounce 
Energy on July 12, and the benefit of previous acquisitions combined with our 
continued focus on improved customer service, we are well positioned to 
deliver on our full year targets," Khan added. 
The efforts of Direct Energy's employees in the first half of the year are 
being felt throughout the company as it continues to deliver high levels of 
customer service while also ensuring and maintaining the highest safety 
standards. 
The company is also moving forward on innovation initiatives such as smart and 
time-of-use products putting customers in control and making their lives 
easier. Direct Energy also unveiled its newly redesigned website, which 
significantly enhances the customer's online experience. 
First half 2013 highlights from Direct Energy's lines of business include: 
Direct Energy Residential 


    --  Gross revenue and operating profit broadly flat at $2.024
        billion and $154 million, respectively, reflecting improved
        volumes and margins in U.S. North and Alberta, offset by some
        narrowing margins in the Texas market.
    --  The benefits from the full year effect of the NYSEG Solutions
        and Energetix acquisitions in U.S. North are being delivered.
    --  The acquisition of Bounce Energy, a Texas-based electricity
        retailer, announced earlier in July, will add around 80,000
        accounts to our customer base in Texas and also provide a
        leading internet-based digital platform for marketing
        innovative products and servicing customer accounts.

Direct Energy Business
    --  Gross revenue increased 21 percent to $2.484 billion,
        reflecting volume growth and the impact of higher wholesale
        commodity prices on retail prices. Operating profit increased
        to $82 million from $68 million.
    --  Strong sales supported a 17 percent increase in total
        electricity and gas volumes respectively.
    --  The acquisition of Hess Energy Marketing, a U.S. energy
        retailer serving more than 23,600 commercial and industrial
        customers in 18 states across the Eastern U.S., will
        significantly advance Direct Energy Business' growth in
        electricity and natural gas in North America.

Direct Energy Services
    --  Gross revenue slightly ahead at $422 million, while operating
        profit increased to $19 million, owing to revenue growth and
        cost control. Given the seasonality in the business, we expect
        increased profitability in the second half and full year
        improvement.
    --  Continued market share growth, with 40,000 new customer
        accounts.
    --  Optimism in the U.S. economy has generated a revival in new
        housing starts and an increase in demand for HVAC products. An
        increase in franchise territories, with a particular focus in
        the Direct Energy residential footprint, should further enhance
        cross-sell activities over time.

Notes:
    --  The results reported in British pounds are expressed in U.S.
        dollars (based on monthly average FX rates) except where noted.
        For reference average half year rates are: For 2013: £1 =
        $1.5446; 2012: £1 = $1.5823.
    --  On February 27(th), 2013, Centrica announced a new
        organizational structure with the North American Upstream Gas
        business now reflected in its International Upstream
        organization and the North American Power and Midstream &
        Trading businesses reflected in its International Downstream
        organization within Direct Energy. For management reporting
        purposes, North American Power and Midstream & Trading
        businesses are now reported within Direct Energy Business. 2012
        revenue and operating profit have been restated accordingly.

About Direct Energy Direct Energy is one of North America's largest energy and 
energy-related services providers with over six million residential and 
commercial customer relationships. Direct Energy provides customers with 
choice and support in managing their energy costs through a portfolio of 
innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one 
of the world's leading integrated energy companies, Direct Energy operates in 
46 U.S. states plus the District of Columbia and 10 provinces in Canada. To 
learn more about Direct Energy, please visit www.directenergy.com.



SOURCE  Direct Energy 
Micah Hirschfield, Direct Energy, +1-713-877-3805, 
micah.hirschfield@directenergy.com, or Will Briganti, RLM Finsbury, 
+1-646-805-2034, will.briganti@rlmfinsbury.com 
http://www.directenergy.com 
http://photos.prnewswire.com/prnh/20121004/MM87276LOGO 
PRN Photo Desk, photodesk@prnewswire.com 
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CO: Direct Energy
ST: Texas
NI: OIL UTI ERN  
-0- Jul/31/2013 09:45 GMT
 
 
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