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UPDATE 2-International Power shares surge as H1 beats view

Published 08/11/2009, 04:29 AM
Updated 08/11/2009, 04:33 AM
UK100
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IPR
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* Profit from ops 555 mln stg vs 512 mln consensus

* Results driven by Asia and Australia, and currency effects

* Continues to see FY 2009 profit lower than 2008

* Interim dividend up 19 pct to 4.25 pence per share

* Shares up over 5 pct (Adds chief executive comments, analyst reaction, share price)

By Ben Deighton

LONDON, Aug 11 (Reuters) - Power generation firm International Power said on Tuesday that its first-half operating profit beat market expectations, driven by currency effects and a strong performance in Asia and Australia.

The results sent its shares surging 5.1 percent to 261 pence by 0803 GMT, making the London-based company the top FTSE 100 gainer.

"All divisions performed ahead of our expectations, especially Australia and Asia, and we believe that this is a very strong underlying first half," said analysts at Morgan Stanley in a note to clients.

The company said profit from operations for the six months ending June 30 was up 12 percent to 555 million pounds ($925 million) compared with a consensus of 512 million expected by six analysts provided by the company.

However the company, which has interests in more than 45 power stations and related businesses around the world, said that this was just a 2 percent rise when currency effects were stripped out.

"The half-year results reflect good operating performance across our international portfolio with increased contributions from Australia and Asia," Chief Executive Philip Cox told reporters.

International Power announced an interim dividend of 4.25 pence per share, up 19 percent.

The company said it continues to expect profit in the full year to be below the level it achieved in 2008, due to difficult markets in Britain and North America. (Editing by Matt Scuffham and Rupert Winchester) ($1=.6000 Pound)

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