Weather hits PowerGen results
UK utility PowerGen has blamed mild weather and an overcapacity in the UK market for a bigger than expected fall in pre-tax profits for the last nine months of 1998. The company warned that its domestic position would continue to be eroded, and has re-iterated its commitment to entering the US market.
Pre-tax profits before exceptionals and goodwill amortization were £320m ($518m), 15 per cent lower than expected.
Last year`s acquisition of East Midlands Electricity, a distribution company in England, has helped PowerGen in its goal of becoming a vertically integrated energy company. However, the sale of 4000 MW of coal fired plant, a condition of receiving approval for the acquisition, will cut its capacity by more than a quarter.