Drax trading conditions still challenging but full year expectations unchanged

Drax said trading conditions in its markets remained challenging, with further weakness in power prices, but expectations for the full year are unchanged.

The power station operator said it continues to benefit from good operational performance and since July, has strengthened its 2015 and 2016 hedges for power sales at prices significantly above the current market.

Drax said biomass operations continue in line with expectations, with the company’s first major planned biomass unit outage completed over the summer and no biomass-related issues identified. The unit is now back in full operation.

It said that in addition to the existing UK east coast port facilities, it had added further import capability with new facilities at Liverpool.

Drax is due to announce its full year results on 23 February 2016.

At 0934 GMT, shares were up 0.6% at 234.60p.