British Energy profits on an upswing, but output down |
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Wed, 16 Aug 2006 11:05
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LONDON - Nuclear power generator British Energy Group PLC today reported a strong performance in the first half of the year thanks to soaring electricity prices, but had to trim down the full-year output targets due to losses in output, for which the group blamed staff communications breakdown.
The group's adjusted earnings before interest, tax, depreciation and amortization totaled £289 million for the three months ending July 2 as compared to £118 million at the same time last year. Pre-tax profits during the period were £210 million as opposed to the £32 million reported at the same time last year. British Energy said the strong performance was credited to the increasing electricity costs, which were £13.8 pounds per megawatt hour (MWh) as compared to the £4.0/MWh a year ago.
Realized price was £35.9/MWh in the three months as against the £11.2/MWh the last time around. “Whilst very challenging, we continue to work towards achieving 63TWh for the financial year 2006/07. However we now expect output to be in the range 61TWh to 63TWh assuming no large losses occur,” said the group. But the output was lean. In the quarter, it was 17.0 terawatt hours (TWh) as opposed to the 17.4TWh at the same time last year. Overall total output to 6 August was 22.9TWh, with unplanned losses at 4.4TWh.
Chief executive Bill Coley was not happy about the output losses, but was pleased with the financial results. “I am pleased with our financial results benefiting from strong electricity prices and continuing improvement in many of our key operating metrics," he said. “However, I am not pleased with the level of unplanned losses. We are sharply focused on improving losses over the remainder of the year, and continue to work towards our long term objective of world class operational performance.”
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