International Power falls on weak outlook
SHARES in power generation company International Power slumped almost three per cent yesterday, despite reporting a higher full-year profit helped by continued strength in its international markets.
The company also said yesterday contributions from new plants that became operational late last year, together with new capacity expected to come on line during 2012, would drive growth this year.
However, it warned that its target of delivering core earnings of €1bn (£834m) from projects under construction in 2013 could prove challenging without a recovery in prices for hydro generation in Brazil.
For 2011 the company, 70 per cent owned by French utility GDF Suez, said adjusted current operating income rose nine per cent to €3.1bn.
Underlying earnings per share rose 11 per cent to 27.6 cents, ahead of consensus estimates of 27.2 cents, according to a company supplied poll of 14 analysts.
Operating income in Latin America rose 18 per cent to €1.3bn, while in North America it rose 45 per cent to €575m, helping offset weakness in Europe and Britain.
The group has recently opened a new hydro-electric power plant in Estreito, Brazil, as well as new projects in Chile and Panama.
A new plant opening in Turkey also provided a boost to Middle East operations, where income grew seven per cent.
International Power was bought by GDF Suez to create the world’s largest independent power producer. The deal, announced in 2010, was completed last February.
Shares in International Power closed at 333p yesterday, valuing the business at about £17.5bn.