Energy group International Power said its spending spree on European power assets had helped profits to double in the first three months of this year.
The group said deals for five plants across the continent had boosted its generating capacity by 92 per cent and contributed to underlying profits jumping to £83 million in the first quarter, from £42 million a year earlier.
Deals included the acquisition of First Hydro in North Wales and a 33 per cent stake in the Derwent power station, Derby, as part of the $2.3 billion (£1.23 billion) purchase of the global generation portfolio of Edison Mission Energy in July.
The move coincided with a surge in wholesale electricity and gas prices and helped increase the value of International Power to a level that elevated it to the FTSE 100 Index in March.
Chairman Sir Neville Simms said the business had performed strongly and the integration of its new power assets was progressing well.
He said: "Higher profitability in this quarter includes positive contributions from all new plants, benefiting in particular from a strong performance at First Hydro in the UK."
Formed in October 2000 by the demerger of National Power, International Power has steadily increased its portfolio to include assets in the United States, Oman, the United Arab Emirates, Australia and Turkey. In addition to the recent acquisitions of Derwent and First Hydro, the company owns the coal-fired plant at Rugeley, Staffordshire, and a gas-fired station in Deeside.
Rugeley was affected by the loss of the contract with TXU Europe when the company collapsed into administration, but International Power has now received £ 53 million compensation.
It has booked £44 million as an exceptional item with the balance being used to cover costs of pursuing the claim. It expects a further payout of up to £31 million in compensation by the spring of next year.
Shares in International Power closed down 7.25p to 180.5p.