December 20, 2017 / 7:48 AM / a year ago

Drax cuts FY core earnings forecast after unplanned outage hit biomass deliveries

Dec 20 (Reuters) - Drax Group Plc on Wednesday cut its full-year core earnings forecast by 10 million pounds ($13.39 million) after an unplanned outage at a rail unloading facility hit biomass deliveries.

The company said generation at two biomass-fired units had been reduced to optimise available supplies of the organic fuel, adding that the units will be taken offline.

However, the unit under the government’s contracts for difference (CfD) renewable energy subsidy scheme and the company’s coal operations remain unaffected, Drax said.

Drax expects the outage on the rail unloading facilities to be completed in January, at which point the two units should return to service.

The company said earlier this month that trading conditions in the markets in which Drax operates remained in line with expectations. It forecast earnings before interest, tax, depreciation and amortization (EBITDA) to be in line with market consensus in July.

Drax had reported EBITDA of 121 million pounds in the first half of 2017, as against 140 million pounds for 2016.

$1 = 0.7471 pounds Reporting by Arathy S Nair in Bengaluru; Editing by Sunil Nair

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