'Confident' IP generates extra profit

IN the midst of a worldwide depression in wholesale electricity prices, International Power managed to spark a one-third rise in its pre-tax profits to £76m in the first quarter ending in March.

As a result, chief executive Peter Giller remains confident that the group will meet its financial targets for the full year. Giller boldly decided to be paid in shares - 680,000 for his three-year contract. He initially suffered a 30% setback in the value of his equity stake but has since seen it recover and today IP shares added 2p to 198 3/4p.

International Power is also beginning to benefit from what it calls 'recovery in key markets like Texas'. The collapse of generators such as Enron has given IP the chance to pick over the bones of its competitors. Today it said that 'conditions in our industry continue to create opportunities for growth through additions to our portfolio'.