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Power company Drax said it expected core earnings to be within the top end of market expectations as higher power prices bolstered performance.
Adjusted earnings before interest taxes, depreciation and amortisation, or EBITDA, was expected to around the top end of current range of analyst expectations for 2021, the company said.
As at 26 November 2021 analyst consensus for 2021 Adjusted EBITDA was £380 million.
The company said that it was commissioning 550,000 tonnes of new biomass pellet production capacity in US Southeast.
In its generation business, the company said its strong forward sold position meant that it hadn't been a 'significant beneficiary of higher power prices from these activities in 2021 but has been able to increase forward hedged prices in 2022 and 2023.'
As at 25 November 2021, Drax had 34.3TWh of power hedged between 2021 and 2023 at £61.3 per MWh.
The customers business was expected to return to profitability at the adjusted EBITDA level for 2021.