Escalating electricity prices and a series of timely acquisitions helped International Power Plc lift first-half profits by 96 per cent, the British energy generator said yesterdat, beating forecasts.

International Power, which has interests in about 40 power stations worldwide - including in Britain and the United States - said profit before tax and exceptional items rose to £280 million for the six months to June 30 from £143 million a year ago.

Analysts polled by Reuters had forecast on average a pretax pre-exceptional profit of £242 million for the firm, which supplies power to 27 million customers around the world. The forecasts had ranged from 224 million to 261 million.

Earnings per share in the first half rose to 11.9 pence from 6.5 pence previously.

The company said operating profits in Europe more than doubled to £242 million from £116 million after seeing a strong increase in UK earnings driven by its Saltend, First Hydro and Rugeley power plants.

US operating profits grew to £28 million from £8 million during the first half.

IP agreed in April to pay $1.14 billion for the Coleto Creek coal-fired power plant in Texas, where electricity prices have leapt with the rising cost of oil and gas.

The company also said in a statement that it expects Coleto Creek to contribute to profits in the second half of this year and that the UK Saltend plant it bought in July 2005 would undergo a "major" planned outage in the third quarter.

IP's outlook was upbeat. "Overall, the portfolio is performing well and we continue to expect 2006 to be a year of strong growth," it said.