Drax FY underlying profits set to top £1bn

Power generation business Drax said on Tuesday that full-year profits looked set to top £1.0bn on the back of a strong performance from its electricity and pellet business.

Drax stated FY underlying profits would be at the top end of consensus forecasts of £993.0m to £1.03bn as its flexible power generation and pellet production units had done notably well

However, Drax highlighted that it was seeking some insight into Downing Street's thinking regarding future plans for the energy sector before it made any further investments in the UK.

Drax chief executive Will Gardiner stated that while both carbon storage and flexible generation were included in the UK's net zero plans, further investment was contingent on "gaining further clarity" on the frameworks for continuing the operation of its power station beyond 2027 and supporting BECCS conversions from 2030.

As of 0940 GMT, Drax shares were up 6.15% at 681.50p.

Reporting by Iain Gilbert at Sharecast.com