Centrica Says Unfavorable Weather Offset Benefit of Residential Customer Growth During First Four Months of Year

Direct Energy parent Centrica recently released an interim management statement in which it said that, for its North American residential energy supply business, profitability in the current year is expected to be slightly reduced compared to 2011, as regulatory changes in Canada and warmer than normal weather in the year to date have offset "good customer growth" in the U.S. Northeast

"In North America we are benefiting from recent acquisitions and ongoing operational efficiencies, and expect to deliver further year on year profit growth in 2012. In residential energy supply, profitability in the current year is expected to be slightly reduced compared to 2011, with the impact of regulatory changes in Canada and warmer than normal weather in the year to date offsetting good customer growth in the US North East. However, in business energy supply we are continuing to deliver growth, with power volumes 9% higher in the first four months of 2012 than for the same period in 2011. We also expect to deliver further growth from our residential services activities following the integration of both Clockwork and Home Warranty of America," Centrica said in the May 11 statement.

Centrica is due to release its Interim Results for the first six months of 2012 on July 26.