LONDON (Alliance News) - Drax Group PLC on Friday said it expects to deliver 2016 earnings at the top end of market expectations as it revealed it has been awarded a new contract from National Grid.
The power generator said earnings before interest, tax, depreciation and amortisation are now anticipated to be at the higher end of expectations in 2016 after reviewing its revenue and cost estimates, as well as the recent weakness in commodity markets, it said.
Drax said that, based on a range of current market forecasts, Ebitda will be toward the top end of a range between GBP132.0 million to GBP161.0 million.
Drax also revealed it has won a 12-month contract from National Grid to supply ancillary services starting this month. The addition of the contract also contributed to Drax's estimate that Ebitda would be at the top end of guidance.
"We are pleased to have agreed this contract with National Grid. At a time when many power stations are closing, this contract recognises the supportive role Drax continues to play in providing secure and dependable electricity to the UK," said Chief Executive Dorothy Thompson.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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