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Nuclear power supplier British Energy has reported a 12 per cent dip in first-quarter core profits following outages at its Hinkley Point and Hunterston plants.

In a statement the energy firm revealed that its earnings before interest, tax, depreciation and amortisation fell to £253 million in the quarter ending July 1st, down from £289 million in the corresponding period of the previous year.

British Energy said that "boiler inspection outages and load restrictions" at Hinkley Point B, in Somerset, and Hunteston B, in Scotland, had impacted upon its financial performance for the quarter.

Output has been reduced at the nuclear plants as a result of the company shutting them down last autumn to repair boiler cracks.

But with the four units at Hinkley Point and Hunterston now returned to service, British Energy stressed that the overall performance of its power stations in the year to date had been "encouraging".

Nonetheless total output for the quarter was 13.8TWh, down from 17.0TWh for the comparable period, with boiler issues at the two power plants partly blamed for the fall.

However in an upbeat response to the results, British Energy chief executive Bill Coley said: "I am encouraged by the performance of the fleet and improvement in the level of unplanned losses.

"We continue to work hard to deliver reliable output from Hinkley Point B and Hunterston B, while seeking to maintain the performance seen across the fleet for the rest of the year."

Meanwhile British Energy has confirmed that future plant investment will be dependent upon decisions about whether to extend the life of both the Hinkley Point B and Hunterston B plants.

A decision on whether the stations should continue to operate is expected by March 31st next year, the company revealed.

British Energy added that it was looking forward to the outcome of the government's current consultation on whether new nuclear power plants should be built, but said it was "continuing to press ahead" with assessing the suitability of sites for new build.

It also expects to make a future announcement regarding discussions it has been undertaking with potential partners over the possible building and operation of new nuclear stations, with further details expected to be released later this year.