Independent power generation company International Power, which has interests in 40 power stations worldwide, may help to soothe investors' frayed nerves after the market's recent tribulations.
The company was in demand on Tuesday morning, climbing 14 pence (27 cents), to 366.5 pence ($7.07), after it posted a 44% rise in 2006 profit, helped by soaring electricity prices in Europe, recovery in its U.S. markets and acquisitions. International Power (nyse: IPR - news - people ), which also gave a bullish forecast for this year, said profit from operations in 2006 was £773 million ($1.49 billion) while earnings per share before exceptional items rose 53%, to 22.4 pence (43.2 cents). It will pay a dividend of 7.9 pence (15.2 cents), up 75%.
Chairman Sir Neville Simms said that the business was "well placed for further growth in 2007." Dresdner Kleinwort agreed, upgrading its recommendation on the company's stock to a "hold" rating from "reduce."
In Europe, International Power said profit from operations increased 59%, to £450 million ($868 million), reflecting strong contributions from Britishassets such as First Hydro, Saltend and Ruegeley. It also said high gas prices in 2006 drove power prices in the country. U.S. profit from operations more than doubled, to £101 million ($195 million), driven by an improved performance from existing assets and a first-time contribution from Coleto Creek, a 632-megawatt plant in Goliad County, Texas, acquired in July.
International Power's shares may also have been helped by news that it is talking to Russian state-owned electricity monopoly United Energy Systems as part of a push to bring in strategic foreign investors to the country.
International Power was formed in 2000 by the breakup of National Power, which was the largest of the three British generating companies created when the Central Electricity Generating Board in England and Wales was split up and privatized in the early 1990s. National Power split into two separate companies: Innogy, which was responsible for U.K.-based operations, and International Power, which took over the international operations.
The company was in demand on Tuesday morning, climbing 14 pence (27 cents), to 366.5 pence ($7.07), after it posted a 44% rise in 2006 profit, helped by soaring electricity prices in Europe, recovery in its U.S. markets and acquisitions. International Power (nyse: IPR - news - people ), which also gave a bullish forecast for this year, said profit from operations in 2006 was £773 million ($1.49 billion) while earnings per share before exceptional items rose 53%, to 22.4 pence (43.2 cents). It will pay a dividend of 7.9 pence (15.2 cents), up 75%.
Chairman Sir Neville Simms said that the business was "well placed for further growth in 2007." Dresdner Kleinwort agreed, upgrading its recommendation on the company's stock to a "hold" rating from "reduce."
In Europe, International Power said profit from operations increased 59%, to £450 million ($868 million), reflecting strong contributions from Britishassets such as First Hydro, Saltend and Ruegeley. It also said high gas prices in 2006 drove power prices in the country. U.S. profit from operations more than doubled, to £101 million ($195 million), driven by an improved performance from existing assets and a first-time contribution from Coleto Creek, a 632-megawatt plant in Goliad County, Texas, acquired in July.
International Power's shares may also have been helped by news that it is talking to Russian state-owned electricity monopoly United Energy Systems as part of a push to bring in strategic foreign investors to the country.
International Power was formed in 2000 by the breakup of National Power, which was the largest of the three British generating companies created when the Central Electricity Generating Board in England and Wales was split up and privatized in the early 1990s. National Power split into two separate companies: Innogy, which was responsible for U.K.-based operations, and International Power, which took over the international operations.
No comments:
Post a Comment