(RTTNews) - International Power PLC (IPR.L: News ,IPR: News ), an independent power generation company, said Wednesday that it expects earnings per share in 2009 to be broadly in line with 2008. The company had previously said that it expects lower profitability in 2009, compared to 2008. In an interim management statement for the period between July 1 and November 10, the company said today that its performance in Europe and Australia are ahead of expectations, while the U.S. Markets remain challenging due to weak gas prices and a decline in demand.

The UK-based company's principal activities include the development, acquisition and operation of power generation plants. It also does activities such as desalination, retail and district heating. The company has operations in 21 countries across North America, Europe, Middle East, Australia and Asia.

Noting that the U.S. merchant markets remain challenging due to weak gas prices and lower demand, the company said in Texas it now expects 2009 spreads and load factors to be marginally down from the guidance given on August 11. However, expected 2009 spreads and load factors in New England remain in line with the previous guidance.

In August, the company said it expects Spark spread of $14/MWh for Texas (Hays), $13/MWh for Texas (Midlothian) and $26/MWh for Texas (Coleto Creek). Load factors for the three were then expected to be 55%, 35% and 95%, respectively.

In the UK, First Hydro benefited from higher margins in the short-term market and increased ancillary services revenue due to reduced plant availability in the system. Saltend continued its strong operational performance and the expected spark spread improved as a result of capturing lower market gas prices. Rugeley and Deeside continue to perform in line with the company's expectations, the utility said.

During the period, Australia continued to perform well and the expected spread and load factor for Hazelwood remain in line with the company's expectations. In the Middle East and Asia, the company's long-term contracted portfolio continues to operate well.
The company noted that Group profitability benefited from a weakening of sterling against the euro, the Australian dollar and the Czech koruna.

Among other events during the period, in October, the company completed the acquisition of AIM PowerGen Corporation, an independent wind farm developer in Canada, for a total cash consideration of C$119 million.

The company had said earlier that it is selling its Czech business to Czecho-Slovak investment firm J&T Group for GBP 738.3 million. The transaction received unconditional clearance from the Czech competition authorities on November 6 and is expected to complete later this month. Results of 2009 will include the benefit of a dividend received from Pražská Teplárenská, 49% owned by International Power, in July this year.

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