British Energy has announced that its profits slumped by 66% over the second quarter of the year, due partly to declining production at its ageing nuclear power plants.

Coming as the company, which is 35%-owned by the government, still tries to attract a buyer after French utilities firm EDF pulled out of a prospective takeover over cost issues, it revealed that it made just £101 million before tax in the three months to the end of June.

This stands in comparison to the same three-month period of 2007, with this decline driven by temporary closures at its Hartlepool and Heysham 1 plants, which affected itas overall output.

However, this was partly offset by rising energy prices, the company also stated.

At the same time, British Energy chief executive Bill Coley reported that the estimated cost of bringing all of the company's nuclear reactors back online has grown from £50 million to £115 million, though the firm is on track to boost output in the near future.

"We have continued to make good progress towards resolving the plant issues that have significantly impacted our performance in the year to date," Mr Coley told the BBC.