Press Releases
07/05/2008
International Power plc - Interim Management Statement
(London – 7 May 2008) International Power today publishes its first Interim Management Statement, in respect of the period from 1 January 2008 to 7 May 2008.
Highlights:- Group performance in line with our expectations
- Acquisition of an additional 40% in 1,008 MW gas fired Turbogás plant, Portugal
- Issue of €500-€600 million Euro-denominated 2015 Senior Convertible Bond
Financial and operating update
Our portfolio is operating well and the Group's financial performance is in line with our expectations for the full year. Expected 2008 spreads and load factors for our merchant assets in the UK and Australia remain in line with the guidance given at the preliminary results on 6 March 2008. In Texas and New England, load factors are currently expected to be lower than our March guidance due to weaker off peak spreads, however, overall financial performance of our portfolio in North America remains in line with expectations due to higher peak spreads. All our contracted assets continue to perform well.
Growth
International Power has signed an agreement to acquire an additional 40% shareholding in Turbogás S.A. (Turbogás), the 1,008 MW gas fired plant located in Portugal and an additional 27% shareholding in the associated operations and maintenance company Portugen, for a total cash consideration of €140 million (£111 million). This acquisition from Energias de Portugal will take International Power's total holding to 100% in both Turbogás and Portugen, and will be immediately earnings accretive.
International Power has been a majority owner of Turbogás since 2004. Turbogás is a high quality asset with a strong operational track record and long-term contracted earnings. The entire output of the plant is sold to REN, the state-controlled transmission company, under a long-term PPA until 2024. The acquisition is expected to complete in the first half of 2008.
The Middle East construction programme remains on track. At Ras Laffan B, in Qatar, an additional 15 MIGD became operational in March, taking the plant capacity to 920 MW and 45 MIGD. At Fujairah F2 in Abu Dhabi, early construction work has begun and is making good progress.
In March 2008 International Power completed the acquisition of an additional 31% shareholding in Uch (572 MW plant located in Pakistan) for a cash consideration of US$85.5 million (£43 million). The acquisition, from affiliates of Tenaska Holdings (L) Corp, takes International Power's total holding in Uch to 71%.
Convertible Bond:
International Power has announced today that it is offering a Euro-denominated 2015 Senior Convertible Bond which is expected to generate proceeds of €500-€600 million (approx. £397-£476 million). The net proceeds from the Convertible Bond will be used to finance a number of investments, including the acquisition of an additional 40% shareholding in Turbogás, the Maestrale wind portfolio, the Elecgas investment in Portugal and to provide additional flexibility for other growth opportunities which we are currently considering. The coupon is expected to be within the range of 4.50% to 5.00%, with an expected exchange premium of 35% to 40%. Further information is contained in a separate press release issued today.
Outlook:
The outlook for the full year remains unchanged from that stated in our Preliminary results announcement in March and we remain confident that 2008 will be another year of growth.
International Power will report financial results for the six months ending 30 June 2008 on 7 August 2008.
Notes to Editors:
Exchange rates of £1: €1.26 and £1: US$1.99 have been applied in this announcement.
For further information please contact
| Investor Contact: Aarti Singhal +44 (0)20 7320 8681 |
Media Contact: Beth Akers +44 (0)20 7320 8622 |
Disclaimer
This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States. The Convertible Bonds or International Power ordinary shares are not and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or the laws of any state within the United States, and may not be offered or sold in the United States, except in a transaction not subject to, or pursuant to an applicable exemption from, the registration requirements of the Securities Act or any state securities laws. No offering of the Convertible Bonds or such shares is being made in the United States.
This press release is for information only and does not constitute an offer to sell, purchase, exchange or transfer any securities or a solicitation of any such offer. This communication must not be acted on or relied on by persons other than persons who (i) are outside the United Kingdom or (ii) have professional experience in matters relating to investments or (iii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.
About International Power
International Power plc is a leading independent electricity generating company with 31,191 MW gross (19,001 MW net) in operation and 2,971 MW gross (875 MW net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, the Czech Republic, France, Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto Rico and Thailand. International Power is listed on the London Stock Exchange with ticker symbol IPR. Company website: www.ipplc.com
