NUCLEAR power generator British Energy has delivered strong earnings on the back of high electricity prices, in the company's first full-year results after a major financial restructuring.

Pre-tax profit was pounds 599m for the year to March. Previous profit figures are not available following the completion last January of a rescue package, prompted when low electricity prices sent the company into the red four years ago.

Under the restructuring, existing shareholders lost nearly all their holdings to creditors in a debt-for-equity swap. The Government gained a 65pc stake in British Energy in return for taking on some of the company's decommissioning liabilities.

British Energy earned pounds 32 per MWh on average in the year to March, compared to pounds 20.4 the previous year. The company moved from having net debt of pounds 220m to having net cash of pounds 218m in March.

Chief executive Bill Coley said: "Largely due to higher realised prices, the group has shown significant improvement in profitability and cash flow.''

British Energy has signed contracts for 73pc of its proposed output for the current financial year at an average of pounds 43 per MWh.

Seven of British Energy's eight nuclear power plants are scheduled to close by 2023. The company has started examining whether it is safe and economic to extend the lives of two plants scheduled to close in 2011. It has already extended the life of Dungeness B in Kent by 10 years, to 2018.

Mr Coley said: "We will seek life extensions at all of our plants where it is technically and economically feasible.''

Asked if new nuclear plants were viable without state support, Mr Coley said: "I do not believe nuclear power requires any subsidies or guarantees to make it viable.''

British Energy shares rose 7 to 694p.

Fall and rise

Mar 2001 New Electricity Trading Arrangements introduced, wholesale electricity prices fall

October 2004 British Energy shares delisted

June 2006 British Energy reports pre-tax profit of pounds 599m for the year on back of high electricity prices