British Energy Nuclear Fleet production down 17%, profits by 14%

British Energy have produced their Q1 2007/08 results ending 1st July.

BE once produced some 20% of the UK base electricity output - the results show an astonishing (unplanned) reduction of total output dropped 17% from 17TWh to 14TWh for the period.

Of these losses 4.5 (TWh) losses were attributable to Hinkley Point B and Hunterston B (Q1 06/07: 1.1TWh). This was due to a loss due to a combination of an actual 60% load (against "planned" 70% load resriction) late return to service and ..... "other losses on return to service" (?) of 0.5 TWh. ( that is, equivelent to the ANNUAL output of ALL UK installed windfarms)

Note also, output from coal fired plant halved (1.7TWh to 0.8 TWh) - although the realised selling price has risen 14% from £36 to £41 per MWh which has helped maintain EBITDA profits down 12% from £289 Mn to £253 Mn (netted down to £168Mn operating profit - a 40% drop ****) although that has been swallowed by increased operating costs rising from £22 to £27 per MWh.Nett sales revenue however declined from £730 Mn. to £670 Mn as total output dropped 17% from 17TWh to 14TWh for the period.

Forward contracts for 07/08 are all pre contracted at £42 MWH and some 50% of output for 08/09 at the same price.

Note that the Q1 loss of output of 4.5TWh plus (optimistically) a running Quarterly loss of (say) 2TWh = a loss of 10.5 TWh on the theoretical maximum of 78TWh = 13.5% reduction in output for the complete year. (Note on Page 9 this is very optimisticaly compared mean losses over 2000-2007)

This significant reduction in output, plus continuing concerns over plant reliability, (notwithstanding expected revisions on lengthening operating life due soon) is a major concern nationally - not that any poiticans have noticed.

The reduction in revenues and profits (despite 14% increase in price - BTW did anyone notice that the unexpected drop in the RPI was accompanied by a comment that energy prices had dropped ?) does not of course encourage investors being lined up (Centrica / Gazprom ?) to join the dodgy BE management in building new nuclear plant.

**** PR Bullshit merchants are boosting net profits up, from £75m last year to £179m - but £134m of that came from the Nuclear Liabilities Fund as a one off contribution after a government stake sale reduced payments into a fund for nuclear waste.