International Power in red in US
RISING electricity prices in the UK and Europe offset further losses in the American operations of International Power, the demerged overseas wing of the now-defunct privatised energy generator National Power.
International Power reported a 30% surge in European third-quarter profits. But continuing depressed energy prices in Texas and New England saw US operations fall £1m in the red.
Pre-tax profits for the first nine months of the year were 22% lower at £109m against 2003 figures that were inflated by compensation payments from its US power plant builder Alstom.
International Power, which is promising for the first time to pay a dividend of 2.5p at the end of the year, said earnings per share at the nine-month stage were 6.3p.
That puts it on course to hit the top end of its much lowered earnings forecasts for the year of between 5.9p and 7.6p.
The shares were under pressure after the uninspiring third-quarter numbers.
In response, Dresdner Kleinwort Wasserstein reiterated its 'buy' stance, describing the figures as a 'solid set of results' consistent with previous guidance.
However, the broker added there was little new news on the outlook for power prices in the company's markets.The shares were down 2- 1/4p at 155p.
