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Drax interims boosted by Iberdrola assets

By Frank Prenesti

Date: Wednesday 24 Jul 2019

Drax interims boosted by Iberdrola assets

(Sharecast News) - Power company Drax on Wednesday reported a 35% jump in interim core earnings boosted by gas, hydro and pumped storage power plants bought from Spain's Iberdrola.
Drax on Wednesday said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the six months to June 30 came in at £138m, compared with £102m a year ago.

The figure included a £36m contribution from the new assets, purchased in a £702m deal earlier this year. Full year EBITDA and net debt expectations remained unchanged, Drax said.

It added that the results did not include £34m of revenue it expects from the Capacity Market, designed to avoid electricity shortages, after the UK government had to stop payments due to an investigation by European Union regulators.

"We continue to expect the issue to be resolved during the second half of 2019, with retrospective payments to be made to generators and reflect this in our expectations for the year."

"Once the market is re-established, we expect to received income from the Capacity Market of £68m in 2019, plus a further £7m in relation to the end of 2018," the company said.

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