FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
February 12th 2003
BRITISH ENERGY PLC
(Registrant's name)
3 Redwood Crescent
Peel Park
East Kilbride G74 5PR
Scotland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):
Exhibit Index
The following document (bearing the exhibit number listed below) is furnished
herewith and is made a part of this Report pursuant to the General Instructions
for Form 6-K:
Exhibit Description
No.1 RNS Announcement, re: Bruce-Cameco Q4/02 Results
dated 12th February 2003
Bruce power - cameco release q4/fy 2002 results
Cameco Corporation ("Cameco") of Canada, British Energy's 15% partner in Bruce
Power, released results yesterday for the fourth quarter of 2002, ended 31
December 2002 and for the financial year ended 31 December 2002.
In its news release yesterday, Cameco provided information on the operating
highlights for Bruce Power (100%), together with a commentary on the fourth
quarter, the 2002 financial year and outlook, which follow.
British Energy's announcement today follows its practice to date of releasing
information regarding Bruce Power's performance included in Cameco's quarterly
results.
On 10 February 2003 , British Energy shareholders approved the proposed disposal
of the company's interest in the Bruce Group at an Extraordinary General Meeting
held solely for this purpose. The disposal to a consortium including Cameco
remains subject to a number of conditions but, assuming these conditions are
satisfied, closing is expected to occur on or before 14 February 2003 as
required by the sale agreements, the HMG credit facility and the restructuring
principles accepted by HMG.
British Energy is also continuing to work hard to reach formal standstill
agreements and agreement in principle on the terms of the proposed restructuring
with significant creditors by 14 February 2003 in accordance with the
restructuring principles accepted by HMG and the terms of the HMG credit
facility.
If the disposal is not completed, or if agreement is not reached with
significant creditors, British Energy may have to seek insolvency proceedings,
in which case the distributions to unsecured creditors may represent only a
small fraction of their unsecured liabilities and it is highly unlikely there
would be any return to shareholders. Even if the disposal is completed and
agreement reached with significant creditors, the proposed restructuring would
remain subject to a large number of significant uncertainties and the return if
any to shareholders would represent a very significant dilution of their
existing interests.
Details of the disposal of Bruce are set out in British Energy's announcement of
23 December 2002 and its circular to shareholders dated 20 January 2003.
3 Months 3 Months Year Period*
HIGHLIGHTS(note 1) Ended Ended Ended Ended
Dec 31/02 Dec 31/01 Dec 31/02 Dec 31/01 (note 2)
Output (terawatt hours) 5.2 5.3 20.8 15.5
Capacity factor (%) (note 3) 75 75 75 87
(C$ million)
Revenue 237 204 919 599
Operating costs 179 189 750 471
Earnings before interest & taxes 58 15 169 128
Interest 13 15 63 41
Earnings before taxes 45 -- 106 87
Cameco's 15% interest 7 -- 16 13
Adjustments 1 -- -- (1)
Cameco's share of earnings before taxes 8 -- 16 12
Notes
1. These figures were prepared under Canadian GAAP and on a calendar year basis
and therefore will differ from those to be presented by British Energy.
2. The comparative data from 2001 is for a 7.5-month period from May 12, being
the date of the financial close of the acquisition of the Bruce lease, to
December 31.
3. Capacity factor for a given period represents the amount of electricity
actually produced for sale as a percentage of the amount of electricity the
plants are capable of producing for sale.
Fourth Quarter. 5.2 terawatt hours of electricity was generated by the Bruce B
reactors representing a capacity factor of 75%. Planned maintenance work on one
reactor, which began in the third quarter, was completed at the end of the
fourth quarter. Although generation output was marginally lower than the
previous year's fourth quarter, higher electricity prices resulted in revenues
of C$237 million.
During the quarter, the average spot electricity price in Ontario was about C$51
per megawatt hour (MWh). About 40% of Bruce Power's generation was sold on the
spot market. For the quarter, Cameco's share of the earnings before taxes was
C$8 million.
Year. The operating year included a series of major planned outages to prepare
the reactors for better long-term service. As a result, power generation by the
Bruce B reactors was limited to 20.8 terawatt hours, reflecting a capacity
factor of 75%. The average realized price was approximately C$44/MWh compared to
about C$38 in 2001. Interest cost of C$63 million included interest on the
long-term lease and the deferred lease payments due to Ontario Power Generation
Inc. (OPG).
In 2002 Cameco recorded earnings before taxes of C$16 million, reflecting its
15% limited partnership interest in Bruce Power during the year.
Updates on Operations
Electricity Business
In November, the Ontario government announced a price cap of C$43/MWh in the
retail electricity market for smaller consumers. This has had no direct impact
on the price in the wholesale electricity market into which Bruce Power sells
its output. The announcement has increased market uncertainty for generators
like Bruce Power.
On December 23, 2002, the company announced that, along with partners, it had
signed a binding agreement to purchase 79.8% of Bruce Power Limited Partnership
from British Energy plc (British Energy) which currently holds an 82.4%
interest. The Power Workers' Union and The Society of Energy Professionals will
obtain the remaining 2.6%.
The agreement commits Cameco to purchase an additional 16.6% interest in Bruce
Power for about C$198 million, subject to minor closing adjustments, bringing
its total interest to 31.6%. Cameco will also provide C$75 million, representing
its one-third share of C$225 million deferred rent payments to OPG to be paid
concurrent with the closing of the acquisition. Upon closing, Cameco's total
commitment in financial assurances is estimated to be about C$200 million,
including its share of financial assurance in relation to the operating license
from the Canadian Nuclear Safety Commission (CNSC), the lease with OPG and the
power purchase agreements with large industrial customers.
Subject to a number of conditions, the closing of the agreement is scheduled to
occur by February 14, 2003. One condition was satisfied with British Energy
shareholders approving the agreement on February 10, 2003. There can be no
assurance that other conditions to closing will be satisfied. For further
details, please see the news release posted December 23, 2002 at www.cameco.com.
Outlook for 2003
Electricity Business (Bruce Power)
Acquisition of Additional Interest
As discussed above, Cameco and its new partners are scheduled to complete the
acquisition of British Energy's interest in Bruce Power by February 14, 2003.
Bruce A Restart
An important milestone in the Bruce A restart program was achieved in early
January 2003 when Bruce Power's environmental assessment report was accepted by
the CNSC. Also in January, Bruce Power reported to the CNSC on the status of
licensing requirements for the Bruce A reactors. The final hearing on the Bruce
A restart program is scheduled for February 26, after which it is expected that
Bruce Power will receive approval to operate units 3 and 4.
On January 14, 2003, Bruce Power received permission from the CNSC to begin
refuelling unit 4. The overall project remains on schedule for the restart of
unit 4 in April and unit 3 in June 2003.
Operations
For the year, an average site capacity factor of about 88% is planned, slightly
below the long-term target of over 90%.
Capital Expenditures
In 2003, Bruce Power's capital expenditure program, excluding the Bruce A
restart, is expected to total about C$165 million. In addition to sustaining
capital expenditures of about C$15 million annually per reactor, the main
projects, which were in Bruce Power's original business plan, include:
a project to uprate the capacity of the B reactors (approximate annual
expenditures in millions for 2003 to 2005: C$15, C$185, and C$100), and
the completion of the Bruce B environmental qualification program (to be
completed in 2003 at an estimated expenditure of C$30 million).
Over the next three years, annual capital expenditures, excluding the Bruce A
restart program, are expected to average about C$245 million.
Bruce Power's internal cash flow is expected to be sufficient to fund its 2003
capital programs including the restart of two Bruce A reactors.
First Quarter of 2003
.... As well, earnings from Bruce Power, based on Cameco's 15% interest, are
expected to be higher than in the first quarter of 2002 due to increased output
and improved prices.
Contact
Paul Heward Investor Relations 01355 262201
Andrew Dowler Media 0207 831 3113
Find this news release on our web-site: www.british-energy.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: 12th February 2003 BRITISH ENERGY PLC
By:____Paul Heward____
Name: Paul Heward
Title: Director - Investor Relations