Interim Management Statement

RNS Number : 2493R

Drax Group PLC

28 April 2009

 



28 April 2009

Drax Group plc

('Drax' or the 'Company')

Symbol: DRX

Interim Management Statement

Drax today publishes its interim management statement for the period from 1 January 2009 to date.

With respect to 2009, the UK market has been experiencing low near-term dark green spreads, although our exposure is mitigated by our strong forward contracted position. If commodity prices remain at current levels, we anticipate full year EBITDA will be in line with those market forecasts which have taken into account these low margins. Our continued focus on active working capital management will provide some support to the impact on cash available for distribution.

For 2010 and beyond, commodity markets currently forecast a sharp recovery in prices and dark green spreads. We continue to trade at healthy levels for these years. 

On 6 March, we announced the acquisition of Haven Power, an electricity supply business serving business customers, in line with our strategy to extend our trading capabilities and options for routes to market. We are pleased to note that the integration of Haven Power within the Drax group is proceeding well.

On 7 April, we announced the signing of the design and build contract with C Spencer, to supply rail unloading equipment and biomass bulk storage and handling systems for the direct injection biomass co-firing systems being installed at Drax. This was the final contract to be awarded for the 400MW biomass co-firing project, which is being delivered to cost and schedule. 

We are also pleased to announce that we have recently signed a new long-term contract with UK Coal at attractive prices, replacing the existing arrangements. 

We continue to make good progress on our biomass growth strategy: we have formally accepted the grid connection offer of 2012 for the Drax site and initial scoping documents have been submitted for both the Drax and Immingham sites. Furthermore, local consultations on the two sites have commenced as part of the planning process.

Other than as stated above, there have been no material events or transactions, nor any material change in the underlying financial position of the group during the period.

Drax will issue a pre close statement on 30 June 2009 in which it will update the market on its positions under contract for 2009, 2010 and 2011.

Conference Call

Management will host a conference call for analysts and investors at 9:00am (UK Time) today. 

After the call a recording will be made available.  Access details for both are set out below.

Event Title:	Drax Group plc: Interim Management Statement
Event Date:	Tuesday 28 April 2009
Event Time:	9:00am (UK time)
UK Call In Number:	020 7162 0025
International Call In Number:	[phone]
US Call In Number:	[phone]
UK Instant Replay
Start Date:	Tuesday 28 April 2009
Delete Date:	Thursday 28 May 2009
Dial In Number:	020 7031 4064
Freephone number (UK only):	0800 358 1860
Passcode:	273787
US Instant Replay
Start Date:	Tuesday 28 April 2009
Delete Date:	Thursday 28 May 2009
Dial In Number:	1-954-334-0342
Freephone number (US only):	1-888-365-0240
Passcode:	273787

For further information please contact:

	On the day	Thereafter
Drax Group plc
Andrew Koss, Investor Relations	[phone]	[phone]
Melanie Wedgbury, Media Contact	[phone]	[phone]
Brunswick
Mike Harrison / Nick Claydon	[phone]	[phone]

Website:    www.draxgroup.plc.uk

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