British Energy has turned around its fortunes

Chief executive Bill Coley said the nuclear power firm had made good financial progress in the period.

However, output for the six months to 2 October was less than expected due to production halts and maintenance work.

British Energy completed a major financial restructuring of the firm in January which kept it in business.

The move gave creditors new bonds and 97.5% of the company in exchange for cancelling �1bn of the firm's debt.

British Energy supplies about a fifth of the UK's energy needs, and operates eight nuclear power stations.

'Maximising output'

Mr Coley said the lower-than-expected output was down to halts in production at its Hartlepool and Heysham 1 plants, together with maintenance work elsewhere.

However he added: "The British Energy team remains keenly focused on the long-term by making the investments in the plant and people to improve reliability and maximise output."

In 2002, a slump in wholesale power prices pushed the company towards the brink of insolvency.

Under the restructuring the stake of existing shareholders was cut to 2.5%, a move which some investment groups were unhappy about.

Shareholders and creditors approved the debt-for-equity swap at the end of 2004, but British Energy needed court approval to proceed with the relisting of its shares on the London Stock Exchange.