Drax: Trading conditions remain challenging

The company has published a trading update for the period from July 1 2015 to date.

The statement said: “Since publishing our half year results on July 28, trading conditions in the markets in which we operate have remained challenging, with further weakness in power prices. However, we continue to benefit from good operational performance and, since July, we have strengthened our 2015 and 2016 hedges for power sales at prices significantly above the current market.

“These factors underpin our expectations for the full year, which remain unchanged.”

Biomass operations at Drax continue in line with expectations, the update said.

The statement added: “Our first major planned biomass unit outage was completed over the summer, with no biomass related issues identified. The unit is now back in full operation.

In addition to the existing UK east coast port facilities, we have added further import capability with new facilities at Liverpool.”