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Last Updated: Monday, 14 February, 2005, 12:02 GMT
Losses increase at British Energy
British Energy plant
The company expects to meet its output targets for the year
The UK's largest power firm, British Energy, has suffered losses of 87m in its first quarterly results since it relisted on the London Stock Exchange.

Forward-selling of contracts meant the nuclear power generator did not see the full benefit of a rise in electricity prices in the three months to December.

The pre-tax figures, which compare to a loss of 10m a year earlier, were also hit by decommissioning costs.

A slump in wholesale prices pushed the firm towards insolvency in 2002.

British Energy's shares - which were relisted last month - fell 2.4% to 248.75p on news of the increased loss.

Rescue deal

The company negotiated a rescue deal with the government and major creditors, finally completed last year.

This gave creditors new bonds and 97.5% of the firm's shares in exchange for cancelling 1bn of its debt.

Output is not great but at least they have reiterated their full-year target
Jason Steed, Lehman Brothers

Last month the firm suffered a shutdown at its Heysham plant in Lancashire, but said it expects the affected unit to return to service in March.

Chief executive Mike Alexander said the company was set to meet its full-year output targets, which were revised in November after a series of other outages.

"Output is not great, but at least they've reiterated their full-year target," said analyst Jason Steed, at Lehman Brothers.



SEE ALSO:
British Energy relists its shares
17 Jan 05 |  Business
British Energy's woes continuing
10 Dec 04 |  Business
British Energy wins scheme delay
30 Nov 04 |  Business
Higher costs hit British Energy
01 Oct 04 |  Business
Lift for British Energy debt plan
30 Sep 04 |  Business
British Energy plans challenged
03 Sep 04 |  Business


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