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Drax expects profits of 400m

07 July 2008

UK-based power-generating firm Drax Group expects full-year results to be slightly higher than market forecasts of profits of around £400 million.

The power station operator fleshed out forecasts for power sales at 23.2 terrawatt hours (TWh), 18.9TWh and 15.9TWh for 2008, 2009 and 2010, respectively.

Despite the contracted position, Drax said it generate additional volumes of power in lower margin periods.

Soaring energy prices for electricity will generate higher than expected profits.

Annual profits will be higher than forecasts of £400.

The FTSE 100 player said it would give investors a special dividend at the half-year results in August after calculating a £100 million cash surplus.

Drax operates the UK's largest coal-fired power station near Selby, which has six generators capable of producing 4,000 megawatts and about seven per cent of the UK's electricity needs.

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