International Power posts profits increase

7 March 2003 – Global power project developer International Power published preliminary results for 2002 today showing profit before interest and tax, (excluding exceptional items) up 19 per cent to £388m ($624m) from £326m ($524m) last year.

Group turnover was up 29 per cent to £717m from £557m in 2001 and earnings per share (pre-exceptional items) were up 26 per cent on last year at 15.5 p (post exceptional items 10.1p).

Sir Neville Simms, Chairman of International Power said: “I am pleased to report excellent financial results from a difficult year for our industry. Once again profits were backed by strong free cash flow and underpinned by good operational performance across the whole of our geographically balanced asset portfolio.”

“2003 will be challenging but we remain confident of delivering a result in line with our existing guidance. The Group remains firmly focused on creating value for shareholders through our operational and financial strength.” Sir Neville added.

During 2002 International Power’s global installed capacity increased 19 per cent to 10 890 MW and the company reached a significant milestone in North America when it achieved successful completion of its 3890 MW US construction programme. Overall capacity in North America now totals 4415 MW (net). The 1395 MW of new capacity added in 2002 constitutes the completion of the last three units at Hays in Texas (3 x 275 MW) and both units at Bellingham in New England (2 x 285 MW).

The cancellation of the tolling agreement with TXU Europe forced International Power to switch its Rugeley power station in the UK to a merchant facility which is has successfully accomplished. Other highlights include the commencement of construction of Shuweihat S1 (1,500 MW power and 100 MIGD water) plant in Abu Dhabi – with the first of five gas turbines installed and Construction of SEAGas pipeline in Australia well underway – over 200 km of the pipe now installed.