(Updates with analyst comment in last paragraph.)
Oct. 26 (Bloomberg) -- International Power Plc, the U.K. based operator of power plants on five continents, said higher electricity prices in Brazil boosted sales in the first nine months of the year.
Revenue increased to 12.3 billion euros ($17.1 billion) from 12.1 billion euros in the same period of last year on a pro forma basis, the London-based company said today in a statement.
International Power agreed to merge assets with Paris- based GDF Suez SA last year, boosting its gross generation capacity to more than 70,000 megawatts in 30 countries. It reported improved performance from Latin America, and Brazil in particular due to “inflation escalation and favorable renewal of contracts.”
The utility is in the process of building 6,600 megawatts of new power plants, mostly in developing countries. The performance of its European business suffered from “weak market conditions” in the U.K., while revenue in North America was similar to last year.
“We continue to see the combination of emerging market growth through new assets and potential margin recovery in merchant generation in the U.S. and U.K. as attractive,” Martin Brough, an analyst at Deutsche Bank AG in London, wrote in a note to investors.
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