International Power generates 5% revenue increase on global demand
THE operator of Rugeley Power Station has seen first quarter revenue increase 5% on the same period last year.
International Power said sales for the three months to March 31 reached £3,756m (€4,257m) and said its portfolio had continued to perform well and in line with our expectations.
Earlier this week, the company’s board accepted a revised offer of £6.4bn from Electrabel, a subsidiary of French energy company GDF Suez, to purchase the remaining 30% of the business it did not already own. Shareholders will vote on the offer, which is based on 418p per share, next month.
In the UK and Europe, the group said profitability in the quarter had benefited from a lower carbon price in the UK and an improved wind yield in Italy. Overall, conditions in the UK market remain weak, which it said had led to the proposed closure of the 210MW Shotton and 210MW Derwent plants.
It said its portfolio of largely contracted plants in Continental Europe had performed in line with last year.
Elsewhere, in Latin America the group said performance for the region had improved compared to the same period in 2011, principally due to higher average achieved prices in Brazil driven by inflation escalation, and the commissioning of new Brazilian hydro capacity at Estreito.
In North America, it said the although revenue was down principally due to lower gas prices, profitability in the region benefited from a contract settlement at the gas transportation business in Mexico and a lower depreciation charge. These helped offset the impact of mild winter weather.
In the Middle East, Turkey & Africa region profitability in the quarter increased from last year, while in Asia, overall performance was slightly ahead of 2011.
In outlook it said: “We remain confident of delivering further growth in 2012, principally driven by full-year contributions from new plants that became operational in late 2011 as well as new capacity that is expected to come on line during 2012.”
