International Power profits

City A.M. Reporter
INTERNATIONAL Power yesterday warned that energy markets would remain subdued in the UK and the US, though strong demand from Asia and Australia boosted the firm’s full-year profits by 10 per cent.

International Power, which has interests in over 45 power stations around the world, said pre-tax profits surged by 13 per cent to £1.3bn over the year, with earnings per share up three per cent at 33.4p.

“The results were bland, but bland is good for International Power,” said Evolution Securities analyst Lakis Athanasiou.

Chief executive Philip Cox told reporters demand for power in the US and UK markets had fallen by between five and seven per cent over the past year, but that it was too early to give demand predictions for 2010.

Cox also said the group would look at any proposals similar to that put forward by GDF Suez recently, which involved combining some of the French firm’s assets with those of International Power to create a larger listed entity.

“These sorts of proposals are all about reviewing what is in the best interests of shareholders and we would look at any proposal in that light,” Cox said.