International Power (LON:IPR) said it made a profit from operations of £524m in the half-year to end-June (2009: £550m) - down 5% (down 9% at constant currency). EPS was 14.1p (2009: 15.4p) - down 8% (down 14% at constant currency). Int'l Power said after adjusting for the sale of the Czech business, underlying profit from operations at constant currency is up 2% and underlying EPS at constant currency is up 7%.
Free cash flow was £398m (2009: £326m) - up 22%. Interim dividend is raised 3% to 4.39p per share. Net debt was £4.835bn at period end (31st December 2009: £5.059bn) - down 4%. Including exceptional items and specific IAS 39 mark to market movements, profit from operations was £443m (2009: £799m) and EPS was 13.1p (2009: 25.9p).
Corporate costs at £25m have increased by £3m compared to last year, primarily due to a one-off income item in 2009 and additional project development costs in 2010.
Net interest expense at £191m is £25m lower than 2009. The principal driver of the reduction is the pay down of $769m of debt secured on five US merchant plants, located in Texas and New England, in December 2009.
The impact of the weakening of sterling on the results of overseas operations, compared to the same period in 2009, is an increase in EPS of 0.8p.
The Group tax charge has increased by £5m to £64m (2009: £59m). The effective rate of tax used in preparing these results is 22% (2009: 23%).
International Power also announced that it will own 30% of a new company to be formed by its merger with French power giant GDF Suez. Under the terms of the agreement shareholders will be entitled to a special dividend of 92p per share.
Sir Neville Simms, Chairman, said: "I am pleased to report that the business has performed well during the first half of the year. Underlying EPS* after adjusting for the sale of the Czech business is up 7% driven by good operational performance across the portfolio and a significantly improved contribution from Rugeley. The Board is pleased to announce an interim dividend of 4.39p. Overall the business continues to perform in line with our expectations, is generating good free cash flow and our financial position remains strong."
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