IP is continuing to renegotiate $890m of debt in the US

The UK electricity company saw its first-quarter, pre-tax profits rise by 12% to �84m ($150m).

However, International Power revealed that it was continuing to lose money in the US, where it has been hit by falling electricity prices.

The firm said it was in talks aimed at renegotiating $890m of debt in the US.

"We expect to provide an update to the market on the outcome of these negotiations by the time of our interim results in early August," the company said in its quarterly statement.