Dallas-based TXU has 5 million customers in North America and Australia, and is considering selling 30 to 49% of the Australian unit, in order to cut $2.25 billion of debt and for expansion of the company's gas and electricity networks, energy retailing, gas storage and power generation in Victoria and South Australia.

The $US43 million net profit is up from $US16 million the previous year with the stronger Australian dollar against the US currency contributing about $US7 million to the increase.

TXU is the third largest energy retailer in Victoria and has recently moved into South Australia. The company has invested more than $4 billion in Australia since 1995, including the $840 million acquisition of Pulse Energy from AGL last year.

The company has also signed an agreement with the partners of VIC/P 44 area (Casino Field) in the Otway Basin for a long-term gas contract for the sale of natural gas.

Under the conditional agreement with the VIC/P 44 joint venturers TXU has agreed to purchase up to a total of 293 petajoules (PJ) of gas with an option to purchase, or an obligation to process, an additional 200 PJ.

The resulting contract quantity equals 493 PJ of gas beginning in 2006 and extending through to 2017.

Overall the Australian business has made a net profit of $US96 million in the first nine months of the year.