Drax reports ‘good’ operating performance

YORKSHIRE-based power station Drax today said it was looking forward to the “timely conclusion” of a Government review of renewable technologies.

In a trading statement, Drax, which is based near Selby, said that trading conditions in the commodity markets in which it operates have improved so far this year, except for domestic coal, where some of its suppliers are facing difficult challenges.

The company said it had taken advantage of better dark green spreads to strengthen its contracted position, including additional power sales of 3.3TWh and 4.9TWh for 2012 and 2013 respectively, compared to the position reported in the preliminary results announcement in February.

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In today’s statement, which covers the period from January 1, Drax said it had continued to deliver a good operating performance. These factors currently underpin the company’s expectations for the full year, which remain unchanged.

The statement added: “In 2011, as part of a review of renewables support, the Government announced its intention to maximise the deployment of the cheapest renewable technologies, and so proposed increased support for electricity fuelled by sustainable biomass in existing coal-fired power stations. As previously described, Drax is ready to transform itself into a predominantly biomass fuelled generator, but to do so we need an appropriate level of regulatory support, and to that end we look forward to the timely conclusion of the Government’s current review.

“Other than as described above, there have been no material events or transactions, nor any material change in the underlying financial position of the group during the period.”

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