Dispute settlement between Barking Power Ltd and TXU Europe nets healthy profit for Balfour.
Balfour Beatty shares perked up this morning after it announced a post-tax gain of £17 million from a legal settlement.
The windfall comes after Barking Power Ltd, in which Balfour has a 25.5% stake, was awarded almost £180 million following the collapse of a deal with TXU Europe, which obligated TXU to buy power from Barking.
TXU, which also held an equity interest in Barking Power, went into administration in November 2002, owning £5 billion.
Barking Power has received an initial dividend of £112 million, which is expected to generate a post-tax gain of £68 million, of which Balfour’s share is £17 million. Further distributions will take place later this year, and in the first quarter of 2006.