BE reports sever profit dips

British Energy's underlying profits for its first quarter to June 2008 were recorded as half that of the year previous, it has been announced.

British Energy's underlying profits for its first quarter to June 2008 were recorded as half that of the year previous, it has been announced.

The profits of the company currently facing a £12 billion takeover bid from EDF Energy will be heavily scrutinised in the bid process, and such results will not please directors after dropping to £129 million from £253 million last year.

First quarter profits were dented originally by a drop in revenues from £668 million to just £629 million, and with refurbishment works rising in cost the profits have faced a long term struggle to keep margins wide.

Last year the company was concerned with fixing corroded wiring in its Heysham-1 and Hartlepool plants, which has come to a total cost of £115 million, a figure far above original estimates.

The company is currently resuming talks with EDF over a proposed takeover, having rejected an offer made earlier this month.

British Energy was widely expected to accept the deal from EDF.

Centrica, the owner of British Gas, has since been preparing its own bid for the energy company, although it would need to buy out the government in order to do so.