Powergen loss is BG's gain

HIGHER gas prices helped drive down electricity generator Powergen's pre-tax profits by 10.3% to £464m before exceptionals and amortisation in the year to 31 December.

BG Group, meanwhile, reported a 21% increase in operating profit to £688m on stronger gas prices and new supplies coming on tap.

Powergen profits were hit by plant disposals and lower returns on wholesale electricity despite turnover up 35% at £5.7bn. It took a £270mn exceptionals hit, compared with a £26mn gain last time.

BG earnings per share at 13.3p, are 13% up on the year, while the dividend is 3% better at 3p.

Powergen shares rose 1 1/2p to 765p on relief that the group had matched expectations while BG dropped back 7 1/2p to 282p.