Drax bolstered by forward sales

18th May 2010 08:07

Drax's forward sales helped the coal-fired power station through the current uncertain conditions in the commodity power market. Forward contracts currently account for sales of 24.5 TWh (terrawatt hours) in 2010, 15.2TWh in 2011 and 9.5TWh in 2012."While trading conditions in the commodity markets in which we operate have remained challenging, we continue to benefit from a very strong contracted position. In addition, we have delivered good operational performance so far in 2010 and we have the ability to take advantage of Drax Power Station's flexibility and reliability to improve profitability in such market conditions. As a result, we continue to trade in line with expectations," it said.Drax added its forward positons represent an accelerated hedge set up in mid-2009 in response to market conditions at that time. It is now reverting to a hedge profile more in line with our historic practice, it added.