International Power generates growth despite weaker UK
INTERNATIONAL Power, owner of Rugeley Power Station, has announced an improved first half performance, despite a reduction in revenues from its operations in Europe.
Revenues in Europe fell 6% compared to the same period last year but the group was buoyed by higher contributions from Latin and North America.
Group revenues for the period to June 30, 2011 were up 6% at £7,060m (€8,104m), which compared with £6,673m (€7,660m) for the first half last year. EBITDA for the period was £1,890m (€2,170m), up 10% on last year’s figures of £1,718m (€1,973m).
In Europe, revenue fell to £1,531m (€1,758m) compared to £1,626m (€1,867m) for the same period last year. EBITDA in Europe decreased 19% to £292m (€336m) compared to £362m (€416m) for the same period last year.
Adjusted Current Operating Income in UK-Europe decreased 45% to £130m (€149m) from £234m (€269m) in the same period for 2010. The group said that as expected, performance in the region was reduced by weaker achieved spreads in the UK.
In the UK, performance at Saltend and Rugeley was lower following the roll-off of contracts signed in the higher price environment prior to 2010, partially offset by lower carbon purchase requirements across the portfolio as the load factor at Rugeley reduced.
As a result of the weak UK market conditions, the group said it had temporarily reduced the declared capacity of the Teesside Carbon Capture project from 1,875MW to 45MW. However, it said the plant could be brought back online to capture upside when the market recovers.
For 2011 the group has forward contracted 95% of its expected output at Rugeley and Saltend and 70% at Deeside and Shotton.
The group said the UK Retail Business, which supplies the Commercial and Industrial market, had seen increases in the volume of gas delivered and stable electricity volumes. Strong contributions from green related products resulted in a performance marginally ahead of the first half in 2010.
Dirk Beeuwsaert, chairman of International Power, said “I am pleased to report that performance in the first half is up on last year, benefiting from a higher contribution from Latin America and North America.
“Several projects under construction have successfully commenced operation in 2011 and we are on track to deliver over 2GW of new capacity in the full year. We have a strong pipeline of committed projects and continue to develop a range of new opportunities, positioning us to deliver sustained growth in shareholder value.”
For latest International Power share price click here
