Drax cautious as commodity pressures ease
TRADING conditions in commodity markets have improved but power station Drax remains cautious about the future, the company said today.
In a stockmarket update, the company revealed it had made sales of 22.6 terawatt hours for 2011, 11.5 for next year and 3.2 for 2013.
The company said: “Trading conditions in the commodity markets in which we operate have improved so far this year, although they remain volatile and we are therefore cautious in our outlook.
“We have taken advantage of better dark green spreads to strengthen our contracted position. This, together with continued good operating performance, currently underpins expectations for the full year.”
Drax announced last month that it had reached a deal with HM Revenue and Customs on tax matters which would see £180m released to the business.
The company reiterated today its intention to use the money to further its strategy of increasing reliance on biomass for energy production if it receives the support it is looking for from Government.
