|
|
International Power - Interim Results
RNS Number:7251A
International Power PLC
4 September 2002
International Power plc
Interim Results for the six months ended 30 June 2002
(London - 4 September 2002) International Power today announces its financial
results for the six-month period ended 30 June 2002 and reports on key
developments to date.
"Once again I am pleased to announce a significant increase in earnings per
share, up 74% from 5.7p in the first half of 2001 to 9.9p and backed by an
operating cash inflow of £221 million. This result reflects solid operational
performance and strong financial management by all the regions in our global
asset portfolio," said Sir Neville Simms, Chairman of International Power.
"This is a particularly good result given the challenging merchant energy
environment. Our conservative approach has substantially shielded us from the
financial issues affecting our sector. It has also increased our potential for
future growth through project development and acquisitions." Sir Neville added.
Financial Highlights
- Earnings per share (excluding exceptional items) up 74% to 9.9p from
5.7p in H1 2001; compound annual growth of 73% from 3.3p in H1 2000
- PBIT (excluding exceptional items) up 51% to £229 million from £152
million in H1 2001
- Operating cash flow of £221 million up from £107 million in H1 2001
- Strong balance sheet - Gearing 51%; Debt Capitalisation 34%
- Exceptional items - net charge of £21 million (pre-tax)
- £24 million KAPCO dividend (Pakistan) - settlement of past
receivables
- Deeside impairment of £45 million
North America
Operating profit in North America increased 64% to £59 million from £36 million
in the first half of 2001. This increase was attributable to the addition of
new capacity and the receipt of compensation payments from Alstom (the prime
contractor). The compensation payments principally relate to income lost during
the period as a result of delays in the construction programme and subsequent
unavailability of plant.
The performance of the North American assets during the first eight months of
2002 continued to improve, with Milford providing a highlight at 100%
reliability and availability. The GT24 fleet has delivered reliabilities in
excess of 93%, and we expect this performance to improve as the newer units
accumulate more operating time.
The last two units at Hays (units 3 and 4) achieved commercial operation in
August and this 1,100MW plant in Texas is now in full commercial operation,
taking our total US operational capacity to 3,845MW. Bellingham (570MW,
Massachusetts), the final plant of our US construction programme, is in
commissioning and on track to commence commercial operation during 2002.
On August 14, the New York State Siting Board approved our Article 10
application for the 580MW Brookhaven project on Long Island in New York. This
approval, which completes the permitting process for the project, should be
confirmed once the statutory 30-day appeal period expires in September.
Currently we are in discussions with potential customers for long-term power
offtake from Brookhaven. Pending an agreement on offtake, the plant is
anticipated to commence construction during the first half of 2003.
With regards to Ramapo, the combination of limited opportunities to secure
creditworthy long-term off-take agreements and continuing wildlife habitat
concerns at the proposed site, has caused us to suspend further development
expenditure on this project. Therefore, we have notified the New York State
Siting Board of our intention to withdraw our application for this project.
The lack of creditworthy trading counter-parties has led to a severe contraction
in liquidity in the United States. This has affected our key markets in the
region (Texas and New England) and has made the execution of forward contracts
difficult.
In Texas, whilst we continue to benefit from higher prices in Northern Texas (a
result of transmission constraints in the state), the overall pricing
environment remains weak and generation oversupply is, at present, preventing
forward prices from making any significant recovery from the current low levels.
In New England (NEPOOL), a new zonal electricity trading system called
Congestion Management System is being launched and is expected to take effect in
the first quarter of 2003. The introduction of this system has created
uncertainty about how NEPOOL will operate and has added to the existing weakness
in liquidity. Although forward prices remain low, in due course, we expect
this new zonal pricing market to be neutral to beneficial, as our assets are
situated in high demand areas.
As a consequence of weak wholesale market conditions, and financial limitations
constraining the industry, the development of new plants across the United
States and particularly in Texas and New England has almost ceased. The level
of new build has also declined radically and in some cases construction has been
halted prior to completion. In the longer term these factors, together with
possible retirement of obsolete capacity, should help restore the supply demand
balance in these States.
Europe and Middle East
Operating profit in the Europe and Middle East region decreased 7% to £77
million from £83 million in H1 2001. This was principally due the inclusion of
earnings from UFG in the prior year numbers (this investment was sold in July
2001) and a decline in margins at Deeside. The acquisition of Rugeley and a
success fee in respect of the Shuweihat project did however offset most of these
negative impacts. Profit after interest and tax was up from the first half of
last year.
Assets in this region delivered solid operational performance. In particular,
Pego, EOP and Marmara all achieved over 95% availability.
At EOP the current offtake contract with VCE (a local distribution company) has
been extended through to the end of December 2005. This contract, which covers
a significant proportion of EOP's total output, has been agreed on a price level
that meets our economic return criteria.
In Italy, we continue to pursue our greenfield development programme which now
comprises around 7,200MW (gross) in aggregate. Of the nine sites under
development, seven are in the permitting process. As this process advances, we
have initiated discussions with several potential offtakers for power. At
present, these discussions are moving slowly due to a lack of clarity on the new
electricity market to be proposed by the Italian Government.
Generally, however, we are encouraged by our prospects in the Italian
electricity market. In particular, over the last 18 months, the total amount of
potential new capacity being evaluated by the government has dropped
dramatically from 77,000MW to less than 30,000MW and demand for power has
continued to increase. These trends should not only result in a favourable
reserve margin but also contribute to the introduction of a market structure
that is conducive to wholesale power generators.
Overcapacity in England and Wales kept wholesale power prices extraordinarily
low during the period. In April, due to these uneconomic prices, we mothballed
half the capacity of our Deeside power station. The market remains oversupplied
as the pace of mothballing of clearly uneconomic plant has been slow. In
recognition of this, and uncertainty on the timing of price recovery, we have
written down the value of our Deeside plant by £45 million.
Following the completion of construction, our Al Kamil power station in Oman
commenced operation in August. To date, the plant has delivered 150 hours of
electricity to the local grid company and is expected to be commercial by the
end of Q3 or in the early part of Q4 this year. The entire capacity at Al Kamil
is contracted under a 15 year Power Purchase Agreement with the Omani Ministry
of Electricity and Water.
Construction of the Shuweihat plant (1,500MW power and 100 million imperial
gallons per day water desalination) remains on schedule and it is expected to
commence operation in the second half of 2004.
Australia
Operating profit in the region grew by 29% to £49 million from £38 million in H1
2001, primarily due to increased profitability at Hazelwood (Victoria) and
Pelican Point (South Australia). In the second quarter (start of Australian
winter), both Victoria and South Australia experienced high levels of demand
leading to increased wholesale prices.
Assets in this core region also delivered good technical performance with
average plant availability of over 90%.
Earlier today, SEA Gas Pty Ltd, our joint venture with Origin energy, signed an
agreement with TXU in Australia. According to this agreement TXU will become an
equity investor in the proposed SEA Gas pipeline and the capacity of the
pipeline will be enhanced (by increasing the diameter from 14" to 18") to
accommodate TXU's requirements for additional gas. International Power, Origin
Energy and TXU will hold equal equity interest (33% each) in SEA Gas Pty Ltd.
As a result TXU will not be proceeding with its plan for a separate gas
pipeline, which was also intended to run from Victoria to South Australia.
Rest of the World
Operating profit increased to £56 million from £11 million in H1 2001. The key
driver for this increase was the resumption of dividends (including the
settlement of past receivables) from Kot Addu Power Company (KAPCO) in Pakistan.
A gross dividend of £41 million has been received (the first since 1998), of
which £24 million that related to the settlement of past receivables, has been
treated as exceptional.
According to the settlement agreement between International Power, KAPCO and
Pakistan's Water and Power Development Authority (WAPDA - the sole customer),
WAPDA has and will continue to settle outstanding balances with KAPCO. To the
extent that dividends are received from KAPCO in respect of the payment of these
outstanding balances, they will be treated as exceptional because of their
non-recurring nature.
All assets continue to deliver high performance, both financially and
operationally, with average plant availability of over 90%. Specifically, our
110MW gas fired plant in Thailand, which commenced operation towards the end of
2000 has been performing well and achieved over 98% availability during the
first half of this year.
In Malaysia, Malakoff's Lumut power station has been performing well, with high
levels of dispatch. Expansion at the site is on track; 420MW (gross) of new
capacity achieved commercial operation in the first quarter and construction of
the remaining 230MW (gross) is progressing ahead of schedule. On completion,
the total capacity at Lumut will be over 1,900MW(gross), all of which has been
contracted under long-term Power Purchase Agreements with Tenaga Nasional
Berhad.
Sustainability
Health and Safety: Pego has won a fifth gold medal from the Royal Society for
the Prevention of Accidents (ROSPA) for continuous improvement in safety
standards at the 600MW coal fired plant. Operation and Maintenance at Pego is
performed by International Power and we are pleased to receive this award, which
reflects the importance we place on health and safety across our global
portfolio.
Employee Relations: Hazelwood Power has won a prestigious Victorian State
Government Premier's Award for its outstanding performance in strengthening
employee relations. This award, which is a result of the effort put in by the
employees, is particularly important given the history of industrial relations
in the Latrobe Valley.
Director Shareholding
Peter Giller, CEO of International Power, is remunerated entirely in shares
under a Restricted Share Plan. According to the terms of this Plan, he is to
receive a total of 677,564 shares in three equal annual tranches starting 2
October 2000. Having received the first tranche in October last year, Mr Giller
will receive the second tranche on 2 October 2002. On receipt of this second
tranche, as last year, he is likely to dispose of a proportion of these shares
primarily to meet income tax liabilities.
Outlook
The outstanding performance to date from all regions of our geographically
diverse asset portfolio, gives us confidence in our ability to achieve strong
financial results for 2002 and meet consensus market expectations, despite the
current weakness in some of our markets.
With respect to earnings expectations for 2003, we are taking a cautious
approach. Our outlook is based on the continued operational strength of our
portfolio and our forward contracted position in regional markets. It assumes
no significant price recovery in Texas, New England or the UK and no
acquisitions. Given these assumptions, we expect earnings per share to be in
the range of 11p to 13p for 2003. This financial performance represents
approximately 20% compound annual growth from calendar year 2000.
With regard to our future growth prospects, the accelerating pace at which new
generation supply is being curtailed should contribute to a faster recovery in
commodity pricing. In the meantime, with our robust balance sheet and strong
cash flow we remain well positioned to take advantage of the increasingly
favourable acquisition environment. These factors, along with new capacity
coming online through our greenfield development programme, should enable us to
resume our growth profile in 2004 and beyond.
For further information
Media contact (Europe): Aarti Singhal +44 207-320-8681
Investor contact (Europe): Grant Jones +44 207-320-8619
Media & Investor contact (US): Paul Parshley +1 508-922-3124
Notes to Editors: -
International Power plc is a leading independent electricity generating company
with 9,955MW (net) in operation, 1,190MW (net) under construction and
approximately 6,000 MW (net) in advanced development. Among the countries where
International Power has operating facilities are Australia, the United States,
the United Kingdom, the Czech Republic, Portugal, Turkey, Malaysia, Pakistan,
and Thailand. International Power was created from the demerger of National
Power, and its shares began trading independently on the London Stock Exchange
and as ADRs on the New York Stock Exchange on 2 October 2000. The ticker symbol
on both stock exchanges is "IPR".
Consolidated Profit and Loss Account
For the six months ended 30 June 2002
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Turnover: Group and share of joint 2 568 570 1,103
ventures and associates
Less: share of joint ventures' turnover (63) (78) (139)
Less: share of associates' turnover (161) (249) (407)
----- ----- -----
Group turnover 344 243 557
Net operating costs - ordinary (213) (174) (392)
Net operating costs - exceptional 3 (45) - (2)
----- ----- -----
Operating profit 86 69 163
Share of operating profit of:
Joint ventures 18 17 27
Associates 63 66 134
----- ----- -----
Income from investments - ordinary 17 - -
Income from investments - exceptional 3 24 - -
----- ----- -----
41 - -
----- ----- -----
Operating profit and investment income 208 152 324
Non operating exceptional items 3 - - 32
----- ----- -----
Profit on ordinary activities before 208 152 356
interest and taxation
Net interest payable and similar
charges
----- ----- -----
Group - ordinary (50) (26) (76)
Group - exceptional 3 - - (29)
Joint ventures and associates (17) (28) (47)
----- ----- -----
(67) (54) (152)
----- ----- -----
Profit on ordinary activities before 141 98 204
taxation
Taxation (42) (31) (64)
----- ----- -----
Profit on ordinary activities after 99 67 140
taxation
Minority interests - equity (3) (3) (2)
----- ----- -----
Profit for the financial period 96 64 138
===== ===== =====
Earnings per share
Basic excluding exceptional items 9.9p 5.7p 12.3p
Basic including exceptional items 8.6p 5.7p 12.3p
===== ===== =====
Diluted excluding exceptional items 9.6p 5.7p 12.0p
Diluted including exceptional items 8.3p 5.7p 12.1p
===== ===== =====
* Restated for the adoption of FRS 19 Deferred tax (see Note 1 Basis of
preparation)
Consolidated Balance Sheet
As at 30 June 2002
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Fixed assets
Intangible assets (1) (4) (5)
Tangible assets 2,634 2,483 2,648
Investments 500 821 496
----- ----- -----
Total fixed assets 3,133 3,300 3,139
----- ----- -----
Current assets
Stocks 30 20 25
Debtors 159 149 158
Investments 71 - 47
Cash at bank in hand 734 265 596
----- ----- -----
Total current assets 994 434 826
Creditors: amounts falling due within one (387) (395) (615)
year
----- ----- -----
Net current assets 607 39 211
----- ----- -----
Total assets less current liabilities 3,740 3,339 3,350
Creditors: amounts falling due after one (1,681) (1,442) (1,436)
year
Provisions for liabilities and charges (250) (234) (217)
----- ----- -----
Net assets 1,809 1,663 1,697
===== ===== =====
Capital and reserves
Shareholders' funds - equity 1,780 1,619 1,670
Minority interests - equity 29 44 27
----- ----- -----
Total equity 1,809 1,663 1,697
===== ===== =====
Net debt (921) (1,318) (897)
Gearing 50.9% 79.3% 52.9%
Debt capitalisation 33.7% 44.2% 34.6%
The gearing percentage represents net debt as a proportion of net assets. The
debt capitalisation percentage represents net debt as a percentage of net assets
plus net debt.
* Restated for the adoption of FRS 19 Deferred tax (see Note 1 Basis of
preparation)
Consolidated Cash Flow Statement
For the six months ended 30 June 2002
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
£m £m £m
Net cash inflow from operating activities 142 88 274
Dividends received from joint ventures and 62 19 59
associates
Dividends received from fixed asset investments - 17 - -
ordinary
----- ----- -----
221 107 333
Dividends received from fixed asset investments - 24 - -
exceptional
----- ----- -----
Returns on investments and servicing of finance
- ordinary (46) (68) (105)
- exceptional (25) - -
----- ----- -----
(71) (68) (105)
Taxation (12) 3 (1)
Capital expenditure and financial investment (89) (264) (406)
Acquisitions and disposals (133) 9 318
----- ----- -----
Net cash (outflow)/inflow before management of (60) (213) 139
liquid resources
Management of liquid resources (21) - (48)
Financing activities 206 371 406
----- ----- -----
Increase in cash in period 125 158 497
===== ===== =====
Consolidated Reconciliation of Net Cash Flow to Movement in Net Debt
For the six months ended 30 June 2002
£m £m £m
Increase in cash in period 125 158 497
Cash inflow from increase in debt and lease (206) (371) (406)
financing
Cash outflow from increase in liquid resources 21 - 48
----- ----- -----
Change in net debt resulting from cash flows (60) (213) 139
Translation differences 38 (26) 17
Other non-cash movements (2) (8) 18
----- ----- -----
Movement in net debt in the period (24) (247) 174
Net debt at the start of the period (897) (1,071) (1,071)
----- ----- -----
Net debt at the end of the period (921) (1,318) (897)
===== ===== =====
Consolidated Statement of Total Recognised Gains and Losses
For the six months ended 30 June 2002
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Profit for the financial period 96 64 138
Exchange differences on the retranslation of net 14 19 (4)
investments and borrowings
Share of recognised gain of associated - 2 2
undertaking
----- ----- -----
Total recognised gains and losses for the period 110 85 136
===== =====
Prior period adjustment (155)
-----
Total recognised gains and losses since last (45)
annual report
=====
Reconciliation of Movements in Shareholders' Funds - Equity
For the six months ended 30 June 2002
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Profit for the financial period 96 64 138
Other recognised gains and losses relating to the 14 21 (2)
period (net)
----- ----- -----
Net addition to shareholders' funds 110 85 136
----- ----- -----
Opening shareholders' funds as originally stated 1,825 1,683 1,683
Prior year adjustment (155) (149) (149)
----- ----- -----
Opening shareholders' funds as restated 1,670 1,534 1,534
----- ----- -----
Closing shareholders' funds 1,780 1,619 1,670
===== ===== =====
* Restated for the adoption of FRS 19 Deferred tax (see Note 1 Basis of preparation)
Notes to the Accounts
Six months ended 30 June 2002
1. Basis of preparation
The accounts for the six months ended 30 June 2002 have been prepared using the
same accounting policies as those adopted for the year ended 31 December 2001,
other than those required following the adoption of FRS 19. The comparative
figures for the year ended 31 December 2001 and the six months ended 30 June
2002 have been restated for this change in accounting policy. The adoption of
FRS 19 has decreased the equity shareholders' funds at 1 January 2002 by £157
million in respect of the deferred tax provision, and a further £19 million in
respect of investments, and increased shareholders funds by £21 million in
respect of intangible assets. The profit for the six months ended 30 June 2001
and the year ended 31 December 2001 were decreased by £4 million and £6 million,
respectively. The effect on the profit for the six months ended 30 June 2002 is
immaterial.
The financial statements are unaudited but have been reviewed by the auditors
and their report is set out on page 13. The statements do not constitute
statutory accounts of the group within the meaning of Section 240 of the
Companies Act 1985. Statutory accounts for the year ended 31 December 2001 have
been filed with the Registrar of Companies. The auditor's report on those
accounts was unqualified and did not contain statements under Section 237 of the
Companies Act 1985.
2. Geographical segmental analysis
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
£m £m £m
Turnover
North America 130 101 237
Europe and Middle East 242 286 521
Australia 110 95 194
Rest of World 86 88 151
----- ----- -----
568 570 1,103
Less: turnover of joint ventures (63) (78) (139)
Less: turnover of associates (161) (249) (407)
----- ----- -----
344 243 557
===== ===== =====
Profit before interest and taxation
(excluding exceptional items)
North America (1) 59 36 93
Europe and Middle East 77 83 141
Australia 49 38 72
Rest of World 56 11 48
----- ----- -----
241 168 354
Corporate costs (12) (16) (28)
----- ----- -----
229 152 326
===== ===== =====
(1) North America profit before interest and taxation includes other income in
respect of the late commissioning and performance recovery of new power plants
amounting to £61 million (year ended 31 December 2001: £80 million and six
months ended 30 June 2001: £27 million). For the six months ended 30 June 2001
these amounts were disclosed in turnover and have been restated.
3. Exceptional items
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
£m £m £m
Net operating exceptional items credited /
(charged)
Release of a provision in respect of an onerous - - 8
property lease
Bank guarantee charge in respect of a trade - - (10)
investment
Deeside impairment (45) - -
----- ----- -----
Net operating exceptional items (45) - (2)
===== ===== =====
Non operating exceptional items credited /
(charged)
Sale of Spanish operations (UFG) - - 30
Sale / termination of Chinese operations - - 2
Backlog dividend received from KAPCO 24 - -
----- ----- -----
Non-operating exceptional items 24 - 32
===== ===== =====
Exceptional interest payable and similar
charges
Australian refinancing charges - - (29)
===== ===== =====
Total exceptional items before attributable (21) - 1
taxation
Taxation on exceptional items 6 - -
===== ===== =====
Total exceptional items after attributable (15) - 1
taxation
===== ===== =====
4. Reconciliation of operating profit to net cash inflow from
operating activities
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
£m £m £m
Operating profit 86 69 163
Depreciation and amortisation 46 35 94
Impairment 45 - -
Movement in working capital (36) (15) 34
Movements in provisions 1 (1) (18)
Other non-cash movements - - 1
----- ----- -----
Net cash inflow from operating activities 142 88 274
===== ===== =====
5. Annual Report and Accounts
Copies of the full Annual Report and Accounts for the year ended 31 December
2001 are available from the company's website www.ipplc.com or by calling or
writing to International Power plc, Senator House, 85 Queen Victoria Street,
London EC4V 4DP or send an e-mail to ir@ipplc.com. Telephone: 020 7320 8600.
Independent review report by KPMG Audit Plc to International Power plc
Introduction
We have been instructed by the company to review the financial information set
out on pages 6 to 12 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where they
are to be changed in the next annual accounts in which case any changes, and the
reasons for them, are to be disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4: Review of interim financial information issued by the Auditing Practises
Board for use in the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and based thereon, assessing
whether the accounting policies and presentation have been consistently applied
unless otherwise disclosed. A review is substantially less in scope than an
audit performed in accordance with Auditing Standards and therefore provides a
lower level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2002.
KPMG Audit Plc
Chartered Accountants
London
3 September 2002
Consolidated Profit and Loss Account
For the three months ended 30 June 2002
Quarter Quarter Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Turnover: Group and share of joint ventures 2 298 285 1,103
and associates
Less: share of joint ventures' turnover (25) (33) (139)
Less: share of associates' turnover (87) (129) (407)
----- ----- -----
Group turnover 186 123 557
Net operating costs - ordinary (124) (88) (392)
Net operating costs - exceptional 3 (45) - (2)
----- ----- -----
Operating profit 17 35 163
Share of operating profit of:
Joint ventures 6 6 27
Associates 37 30 134
----- ----- -----
Income from investments - ordinary 17 - -
Income from investments - exceptional 3 24 - -
----- ----- -----
41 - -
----- ----- -----
Operating profit and investment income 101 71 324
Non-operating exceptional items 3 - - 32
----- ----- -----
Profit on ordinary activities before interest 101 71 356
and taxation
----- ----- -----
Net interest payable and similar charges
Group - ordinary (28) (18) (76)
Group - exceptional 3 - - (29)
Joint ventures and associates (8) (13) (47)
----- ----- -----
(36) (31) (152)
----- ----- -----
Profit on ordinary activities before taxation 65 40 204
Taxation (19) (13) (64)
----- ----- -----
Profit on ordinary activities after taxation 46 27 140
Minority interests - equity (1) (2) (2)
----- ----- -----
Profit for the financial period 45 25 138
===== ===== =====
Earnings per share
Basic excluding exceptional items 5.3p 2.2p 12.3p
Basic including exceptional items 4.0p 2.2p 12.3p
===== ===== =====
Diluted excluding exceptional items 5.2p 2.2p 12.0p
Diluted including exceptional items 3.9p 2.2p 12.1p
===== ===== =====
* Restated for the adoption of FRS 19 Deferred tax (see Note 1 Basis of preparation)
Consolidated Balance Sheet
As at 30 June 2002
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Fixed assets
Intangible assets (1) (4) (5)
Tangible assets 2,634 2,483 2,648
Investments 500 821 496
----- ----- -----
Total fixed assets 3,133 3,300 3,139
----- ----- -----
Current assets
Stocks 30 20 25
Debtors 159 149 158
Investments 71 - 47
Cash at bank in hand 734 265 596
----- ----- -----
Total current assets 994 434 826
Creditors: amounts falling due within one year (387) (395) (615)
----- ----- -----
Net current assets 607 39 211
----- ----- -----
Total assets less current liabilities 3,740 3,339 3,350
Creditors: amounts falling due after one year (1,681) (1,442) (1,436)
Provisions for liabilities and charges (250) (234) (217)
----- ----- -----
Net assets 1,809 1,663 1,697
===== ===== =====
Capital and reserves
Shareholders' funds - equity 1,780 1,619 1,670
Minority interests - equity 29 44 27
----- ----- -----
Total equity 1,809 1,663 1,697
===== ===== =====
Net debt (921) (1,318) (897)
Gearing 50.9% 79.3% 52.9%
Debt capitalisation 33.7% 44.2% 34.6%
The gearing percentage represents net debt as a proportion of net assets. The
debt capitalisation percentage represents net debt as a percentage of net assets
plus net debt.
* Restated for the adoption of FRS 19 Deferred tax (see Note 1 Basis of preparation)
Consolidated Cash Flow Statement
For the quarter ended 30 June 2002
Quarter Quarter Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
£m £m £m
Net cash inflow from operating activities 68 56 274
Dividends received from joint ventures and associates 30 2 59
Dividends received from fixed asset investments - 17 - -
ordinary
----- ----- -----
115 58 333
Dividends received from fixed asset investments - 24 - -
exceptional
Returns on investments and servicing of finance (24) (45) (105)
Taxation (10) 8 (1)
Capital expenditure and financial investment (48) (129) (406)
Acquisitions and disposals - 9 318
----- ----- -----
Net cash inflow/(outflow) before management of liquid 57 (99) 139
resources
Management of liquid resources 22 - (48)
Financing activities 167 284 406
----- ----- -----
Increase in cash in period 246 185 497
===== ===== =====
Consolidated Reconciliation of Net Cash Flow to Movement in Net Debt
For the quarter ended 30 June 2002
£m £m £m
Increase in cash in period 246 185 497
Cash inflow from increase in debt and lease (167) (284) (406)
financing
Cash (inflow)/outflow from (decrease)/increase (22) - 48
in liquid resources
----- ----- -----
Change in net debt resulting from cash flows 57 (99) 139
Translation differences 86 (39) 17
Other non-cash movements (5) (5) 18
----- ----- -----
Movement in net debt in the period 138 (143) 174
Net debt at the start of the period (1,059) (1,175) (1,071)
----- ----- -----
Net debt at the end of the period (921) (1,318) (897)
===== ===== =====
Consolidated Statement of Total Recognised Gains and Losses
For the quarter ended 30 June 2002
Quarter Quarter Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Profit for the financial period 45 25 138
Exchange differences on the retranslation of (27) 19 (4)
net investments and borrowings
Share of recognised gain of associated - 2 2
undertaking
----- ----- -----
Total recognised gains and losses for the 18 46 136
period
===== ===== =====
Reconciliation of Movements in Shareholders' Funds - Equity
For the quarter ended 30 June 2002
Quarter Quarter Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
(restated *) (restated *)
£m £m £m
Profit for the financial period 45 25 138
Other recognised gains and losses relating (27) 21 (2)
to the period (net)
----- ----- -----
Net addition to shareholders' funds 18 46 136
----- ----- -----
Opening shareholders' funds as originally 1,762 1,723 1,683
stated
Prior year adjustment - (150) (149)
----- ----- -----
Opening shareholders' funds as restated 1,762 1,573 1,534
----- ----- -----
Closing shareholders' funds 1,780 1,619 1,670
===== ===== =====
* Restated for the adoption of FRS 19 Deferred tax (see Note 1 Basis of preparation)
Notes to the Accounts
Quarter ended 30 June 2002
1. Basis of preparation
The accounts for the quarter ended 30 June 2002 have been prepared using the
same accounting policies as those adopted for the year ended 31 December 2001,
other than those required following the adoption of FRS 19. The comparative
figures for the year ended 31 December 2001 and the quarter ended 30 June 2001
have been restated for this change in accounting policy. The adoption of FRS 19
has decreased the equity shareholders' funds at 1 April 2002 by £156 million in
respect of the deferred tax provision, and a further £15 million in respect of
investments, and increased shareholders funds by £21 million in respect of
intangible assets. The profit for the year ended 31 December 2001 was decreased
by £6 million.
The financial information for the year ended 31 December 2001 is derived from
the statutory accounts for that period, which have been delivered to the
Registrar of Companies. The auditors have reported on the accounts for the year
ended 31 December 2001, their report was unqualified and did not contain
statements under Section 237 of the Companies Act 1985
2. Geographical segmental analysis
Quarter Quarter Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
£m £m £m
Turnover
North America 78 59 237
Europe and Middle East 117 140 521
Australia 55 42 194
Rest of World 48 44 151
----- ----- -----
298 285 1,103
Less: turnover of joint ventures (25) (33) (139)
Less: turnover of associates (87) (129) (407)
----- ----- -----
186 123 557
===== ===== =====
Profit before interest and taxation (excluding
exceptional items)
North America (1) 28 24 93
Europe and Middle East 36 35 141
Australia 20 13 72
Rest of World 43 8 48
----- ----- -----
127 80 354
Corporate costs (5) (9) (28)
----- ----- -----
122 71 326
===== ===== =====
(1) North America profit before interest and taxation includes other income in
respect of the late commissioning and performance recovery of new power plants
amounting to £29 million (year ended 31 December 2001: £80 million and quarter
ended 30 June 2001: £15 million). For the three months ended 30 June 2001 these
amounts were disclosed in turnover and have been restated.
3. Exceptional items
Quarter Quarter Year
ended ended ended
30 June 30 June 31 December
2002 2001 2001
£m £m £m
Net operating exceptional items credited /
(charged)
Release of a provision in respect of an onerous - - 8
property lease
Bank guarantee charge in respect of a trade - - (10)
investment
Deeside impairment (45) - -
----- ----- -----
Net operating exceptional items (45) - (2)
===== ===== =====
Non-operating exceptional items credited /
(charged)
Sale of Spanish operations (UFG) - - 30
Sale / termination of Chinese operations - - 2
Backlog dividend received from KAPCO 24 - -
----- ----- -----
Non-operating exceptional 24 - 32
items
===== ===== =====
Exceptional interest payable and similar charges
Australian refinancing charges - - (29)
===== ===== =====
Total exceptional items before attributable (21) - 1
taxation
Taxation on exceptional items 6 - -
===== ===== =====
Total exceptional items after attributable (15) - 1
taxation
===== ===== =====
4. Annual Report and Accounts
Copies of the full Annual Report and Accounts for the year ended 31 December
2001 are available from the company's website www.ipplc.com or by calling or
writing to International Power plc, Senator House, 85 Queen Victoria Street,
London EC4V 4DP or send an e-mail to ir@ipplc.com. Telephone: 020 7320 8600.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR IFFLLAAIVIIF
For more information and to contact AFX: www.afxnews.com and
www.afxpress.com
|
|
