Feb. 8 (Bloomberg) -- International Power Plc, an operator of electricity plants on five continents, declined the most in four months in London trading after forecasting weaker growth.
International Power, a unit of GDF Suez SA, fell as much as 4.6 percent, the most since Sept. 22, and traded down 3.4 percent at 331.2 pence as of 9:08 a.m. local time. Growth this year may be affected by contracts expiring in North America and lower prices in Brazil, the company said today in a statement.
“The main disappointment comes from the outlook,” Martin Brough, a London-based analyst at Deutsche Bank AG, wrote in an e-mailed note. “While we would expect the share price to drop slightly on the back of the results, the company continues to have an attractive portfolio of growth projects.”
The London-based power producer, which operates plants from Latin America to the Middle East, is focusing on expansion in developing countries such as Brazil, where electricity demand is growing faster than in North America and Europe.
International Power reported an 8 percent gain in 2011 earnings before interest, tax, depreciation and amortization to 4.3 billion euros ($5.7 billion), according to today’s statement. Sales advanced 3 percent to 16.5 billion euros.
“Against a backdrop of economic weakness in many developed economies, these results demonstrate the strength of our international portfolio, underpinned by our attractive position in fast-growing emerging markets,” Chairman Dirk Beeuwsaert said in the statement. “We remain well-placed to create value.”
International Power will pay out 11 euro cents (14.6 U.S. cents) a share, or 40 percent of profit, in dividends. The payout ratio was 37.5 percent in 2010, Chief Executive Officer Phil Cox said on a conference call with reporters. The company was able to increase the return because of its “strong” set of assets and cash flow, he said.
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