Drax aims to beat the expectations

The group, based in Selby, North Yorkshire, said good operational performance helped it maintain a high load factor and improve profitability.

Drax, which supplies around seven per cent of the UK's electricity, said both EBITDA (earnings before interest, tax, depreciation and amortisation) and earnings per share should beat market expectations.

"Whilst the commodity markets in which we operate remain challenging... we benefit from a strong forward contracted position," said the group.

Charles Stanley analyst Tina Cook said she sees EBITDA hitting 384m for the full year.

"Profits have benefited from the recent cold snap and plant reliability and flexibility has helped maintain a high load factor," she said.

"The coal plant operator is fully hedged for the current year, but commodity markets remain challenging with earnings in outer years still exposed."