Drax cheers with improved full-year outlook

13th Nov 2013 08:28

Shares in Drax, the electrical power generation company, got a boost on Wednesday when it revealed full-year earnings before interest, tax, depreciation and amortisation (EBITDA) and underlying earnings per share would be 'materially ahead' of current market consensus forecasts. The group said it had benefited from good trading conditions and a solid operating performance from its coal generating units. It also reported an encouraging performance by its first unit that was converted to burn biomass in place of coal. In addition, the commissioning of its new biomass delivery, storage and distribution systems is progressing very well, it said. Drax has improved its contracted position, with power sales of 25.6trn for 2013, and 20.5trn for 2014. The group's share price was up 4.87% to 667.50p by 08:45 on Wednesday.NR