British Energy, owner and operator of Kent's Dungeness B Power Station, has reported a drop in profits of more than 60 per cent in the three months to June.

British Energy said profits had fallen to £62 million from £179 million in the same period last year.

The group was recently the subject of a failed takeover bid by French electricity giant EDF.

Chief executive Bill Coley said boiler unit closures at Hartlepool and Heysham 1 nuclear plants had hit output and were costing more than thought to repair.

He said: "We have continued to make good progress towards resolving the plant issues that have significantly impacted our performance in the year to date.

"The role for nuclear new build as an integral part of UK energy policy is now firmly established."