British Energy woes continue

13-11-2007

British Energy woes continue
British Energy has warned problems with some of its nuclear reactors are set to hit the company's profits.

The warning comes despite the UK's largest electricity producer reporting a six per cent increase in underlying first-half core earnings.

In a statement today the nuclear power company revealed its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £511 million pounds in the six months to September 30th – up from £481 million for the corresponding period of last year.

But the company - which generates a fifth of the country's electricity - stressed nuclear output had been adversely impacted by boiler inspection outages and load restrictions at its Hinkley Point B and Hunterston B power plants.

The plants were shut down in October last year when cracks were found in their boiler pipes and are continuing to run below capacity.

Looking ahead British Energy also warned the recent closure of nuclear reactors at its Hartlepool and Heysham power stations would "significantly" impact upon its performance in the second-half.

Last month the company revealed "an issue related to a wire winding" had been identified during a routine inspection of boiler closure units at Hartlepool reactor one, forcing the company to delay the reactor's return to service.

Four units at Hartlepool and Heysham were affected by the discovery, with British Energy revealing today a failed wire had also been identified at Heysham reactor one.

Inspection of the two remaining reactors is in progress, but British Energy stressed a timetable for the four units to return to service would only be forthcoming once a full assessment had been completed.

British Energy chief executive Bill Coley said: "It is unfortunate that the output in the second half will be impacted by the BCU issue at Hartlepool and Heysham one, which stems from the original design and construction of the stations."

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure