Status quo for Drax

DRAX, the UK’s biggest coal fired power station, said today that despite challenging conditions in commodity markets it was continuing to trade in line with expectations.

The Selby-based power generator said that there had been no material events or transactions other than a £107m share placing in June.

The move came after credit rating agency Standard & Poor downgraded Drax’s senior secured debt rating from BBB to BBB- with “negative outlook”.

In August, Drax reported EBITDA (profit before interest, tax, depreciation and amortisation and unrealised gains / losses) of £150m for the six months ended June 30 compared to £206m the same period last year.

Revenue was £707m down from £802m during the first half 2008.

Drax said the results reflected decreases in average achieved power price and power sold. However, these were partially offset by lower fuel and carbon costs.