Power prospects down

1 min read

Electricity group, International Power, said that it has performed in line with expectations for 2009; however, outlook for the full-year remains unchanged.

The group, which has interests in power stations throughout the world, said that its portfolio had been operating well and that it expects 2009 sales in the UK, Australia and North America to be in line with expectations.

In the UK, the company said that commission of flue gas desulphurisation equipment at Rugeley had been going well, and it is expected to be operational next month.

However, the group said that forward pricing in the UK and the US would be significantly lower and would therefore contribute to a decline in profits for the rest of the year.

Nevertheless, the company claims that its financial position is strong, with good corporate liquidity for the year ahead.

In a statement the group said: ‘We have a well-established portfolio of long-term contracted assets which continues to perform well.

'We are also well-positioned in our key merchant markets, although forward pricing in the UK and the US does not reflect the attractive long-term market fundamentals.

‘In the absence of a significant improvement in pricing in these two markets, it is likely that Group profitability in 2009 will be lower than in 2008.’