8th Jun 2015 06:13
LONDON (Alliance News) - Drax Group PLC Monday said trading conditions have "remained challenging" in 2015 as weak gas markets continue to cause lower power prices, but said its expectations for the full year remain unchanged.
The FTSE 250-listed UK power generator said although conditions remain difficult, it continues to benefit from a strong contracted position and good operational performance of its generating units.
As at June 1, Drax has 23.8 terawatt hours of power sales secured for 2015, which is up from 20.4 terawatt hours at the end of February. For 2016, Drax has power sales of 12.1 terawatt hours contracted, which is up from 9.4 terawatt hours at the end of February.
The majority of the power sales are for a fixed price, which is at an average price of GBP49.9 per megawatt hour for 2015 and at GBP48.8 per megawatt hour in 2016.
The company's two biomass conversion units "continue to perform in line with expectations" and the third unit has been awarded an investment contract, which remains subject to clearance from the EU State aid clearance, it said in a statement.
The two US pellet plants are still being commissioned, but have already produced pellets which have been successfully processed.
By Joshua Warner; [email protected]; @JoshAlliance
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