Drax takes advantage of better dark green spreads

Drax, which converts coal and biomass to energy, said it has delivered a good operating performance so far in 2012 and its expectations for the full year remain unchanged.

The group said it has taken advantage of improvements in dark green spreads - the difference between the wholesale price at which power is sold and the coal and carbon dioxide costs faced in generating that power - to strengthen its contracted energy provision agreements, including additional power sales of 3.3 terawatt hours (TWh) and 4.9TWh for 2012 and 2013, respectively.

Contracted power sales are 25.3TWh for 2012, 14TWh in 2013 and 3.7TWh in 2014. Hedged CO2 emissions are 25.1TWh, 14.2TWh and 3.7TWh, in 2012, 2013 and 2014, respectively.

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Fixed price power sales at an average achieved price are 20.4TWh at £52.80, 11.4TWh at £52.60 and 1.1TWh at £56.70. Fixed margin and structured power sales are at 4.9TWh, 2.6TWh and 2.6TWh, respectively.

Solid fuel at fixed price or hedged rates, including structured contracts currently stands at 25.6TWh in 2012, 16.4TWh in 2013 and 11.2TWh in 2014.

The share price fell 0.17% to 573.50p by 08:32.

NR