22nd Apr 2020 08:48
(Alliance News) - Power producer Drax Group PLC on Wednesday backed its full-year guidance after its first quarter of trading but added it is "vigilant" as the Covid-19 pandemic unfolds.
Drax says it is in line to meet analyst consensus for adjusted earnings before interest, tax, depreciation, amortisation of GBP398 million. This includes a potential hit of GBP60 million in its Customer segment as a result of reduced demand.
"With our strong balance sheet, robust trading and operational performance, and resilient sustainable biomass supply chain, Drax is in a strong position to support its employees, business customers and communities during the Covid-19 crisis, while continuing to generate returns for shareholders," Chief Executive Officer Will Gardiner said.
"Nevertheless, it is still early in this pandemic. As Covid-19 continues to develop, we remain vigilant in looking to protect all our stakeholders and will report further if there are significant changes to our outlook for 2020."
Drax added that it will still pay its final dividend of 9.5 pence per share.
"In determining the continued appropriateness of the dividend, the board has considered a range of factors - trading performance, current liquidity, the outlook for the year in the context of Covid-19, as well as the steps being taken to support all stakeholders. The board believes payment of the final dividend remains consistent with the Group's commitment to stakeholders," Drax explained.
Shares in the company climbed 7.0% to 211.08p each on Wednesday morning in London, making it one of the best performers in the FTSE 250.
By Eric Cunha; [email protected]
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