Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

Drax Group Plc (DRX)

  Print      Mail a friend       Annual reports

Friday 09 May, 2014

Drax Group Plc

Interim Management Statement

RNS Number : 6666G
Drax Group PLC
09 May 2014

9 May 2014


(Symbol: DRX)


Interim Management Statement


Drax today publishes its interim management statement for the period from 1 January 2014 to date.


Trading Performance

Since publishing our preliminary results on 18 February, power prices have fallen further, with mild weather across Europe resulting in weaker gas markets.  In addition, we currently anticipate some further weakness in ROC(1) prices this year, exacerbated by abnormally high wind generation.  As a result, we now anticipate that, unless markets improve in the coming months, full year EBITDA(2) and underlying earnings per share(3) for 2014 will be below current market forecasts(4).


Power Sales Contracted for 2014 and 2015

We have extended our contracted position, including additional power sales of approximately 3TWh for each of 2014 and 2015 compared to the position reported in February.


As at 1 May 2014, the power sales contracted for 2014 and 2015 were as follows:




Power sales (TWh) comprising:



- Fixed price power sales (TWh)



 at an average achieved price (per MWh) (5)

at £51.9

at £54.3

- Fixed margin and structured power sales (TWh) (6)




Biomass Transformation

We have continued to make very good progress with the Group's on-going transformation to a predominantly biomass-fuelled electricity generator.  Overall, capital investment remains on schedule and budget.


Commissioning of the new on-site biomass facilities is on schedule to complete in the third quarter of this year.  Two of the four storage domes are now in service and the new facility at Port of Hull is fully operational.  In the US, we continue to expect commercial operations at our first pellet plant and port facility to begin in the first quarter of 2015, with commercial operations at the second pellet plant following on in the second quarter.


Operationally, our first converted unit, which was commissioned in April 2014, continues to perform very well and we now have over twelve months' experience operating the largest converted unit in the world.  We have made further good progress with the unit optimisation work and remain confident that we will deliver industry leading operating performance.


Finally, as anticipated, at the beginning of May one of our coal units began to operate as an enhanced co-firing unit, burning at least 85% biomass.  The unit is now beginning a phased commissioning process. 


Unit Eligibility for Early CfDs

On 23 April we announced that Drax had been offered an Investment Contract under the early Contracts for Difference ("CfDs") mechanism for the third unit conversion, but that the Government had rejected our second unit conversion, advising it was no longer eligible for an Investment Contract. Support for the second unit conversion is available under the existing Renewables Obligation regime, where eligibility has been confirmed, and may also be available under the enduring CfD mechanism. 


Legal advice confirmed that Drax has a good foundation to challenge the Government's decision to exclude this second unit from the award of an Investment Contract.  We have therefore initiated proceedings. 


The Government's decision has caused some uncertainty, which will lead to delay in biomass supply and logistics development. We do, however, remain fully committed to our strategy of transforming Drax into a predominantly biomass-fuelled generator, initially through the conversion of three of our six generating units, with a fourth unit conversion under evaluation. 


Other Matters

We have agreed a new private placement for £100 million with various funds managed by M&G Investments, which will be used for general business purposes.  This strengthens our balance sheet and maintains a smooth profile for the Group's debt maturities.  The all-in cost of this debt is very competitive.


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


We will announce our half year results for the six months ending 30 June 2014 on 29 July 2014.







(1)   Renewables Obligation Certificates.

(2)   EBITDA is profit before interest, tax, depreciation, amortisation and unrealised gains/losses on derivative contracts.

(3)   Underlying earnings per share excludes the after tax impact of unrealised gains and losses on derivative contracts, and exceptional items.

(4)   Based on a range of market forecasts (published since our preliminary results on 18 February) of £240 million to £261 million for EBITDA and 27 pence to 30 pence for underlying earnings per share.

(5)   Fixed price power sales include approximately 0.8TWh supplied to Centrica in the period 1 January 2014 to 1 May 2014 under the five year 300MW baseload contract which commenced on 1 October 2010.

(6)   Fixed margin and structured power sales include approximately 1.8TWh in 2014 and 1.9TWh in 2015 in connection with the above contract. Under this contract the Group will supply power on terms which include Centrica paying for coal, based on international coal prices, and delivering matching CO2 emissions allowances amounting in aggregate to approximately 2.4 million tonnes in 2014 and 1.8 million tonnes in 2015. The contract provides the Group with a series of fixed dark green spreads agreed in October 2009.




Drax Investor Relations: Michael Scott / Mark Strafford

+44 (0) 1757 612 230 / +44 (0) 1757 612 491



Drax External Communications: Melanie Wedgbury

+44 (0) 1757 612 438



Brunswick: Richard Jacques / Nina Coad

+44 (0) 207 404 5959





This information is provided by RNS
The company news service from the London Stock Exchange

a d v e r t i s e m e n t