Rugeley Power Station owner confident of growth despite tough conditions
INTERNATIONAL Power, operator of Rugeley Power Station, said today it was confident of further growth although energy markets remained volatile.
In its final results, the company said global revenue had risen 3% to £13.7bn (€16.5bn), while EBITDA was up 8% at £3.6bn (€4.34bn).
However, this was not true of its UK and European operations, which declined 4% over the full year to £2.62bn (€3.6bn) compared to £3.11bn (€3.75bn) last year – down 3% at constant currency rates.
Adjusted current operating income decreased 33% to £283m (€341m) from £422m (€509m) in the previous year – a fall of 32% at constant currency rates.
In the UK, it said performance at Saltend and Rugeley was lower following the roll-off of higher priced contracts signed prior to 2010.
“Conditions in the UK market remain challenging,” it said.
The company has already temporarily reduced the declared capacity of its Teesside plant from 1,875MW to 45MW. The plant can be brought back on line when the market recovers.
“The UK retail business supplies the commercial and industrial market and has seen an increase of 9% in the volume of gas sold and a 6% rise in electricity volume coupled with higher sales prices. The increase in revenue has largely been offset by increased commodity costs,” it said.
Overall, chairman Dirk Beeuwsaert said he was pleased with the group’s performance, especially in the emerging markets.
“Against a backdrop of economic weakness in many developed economies, these results demonstrate the strength of our international portfolio, underpinned by our attractive position in fast growing emerging markets,” he said.
“We remain well placed to create value from our existing portfolio and through multiple investment opportunities.”
He said growth would be supplied by full year contributions from new plants that became operational in late 2011 together with new capacity expected to come on line during 2012.
