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Power & Utilities

Drax Group warns of £10mln EBITDA hit from "unplanned outage" at rail unloading facilities

The FTSE 250 listed firm said that as a result of the outage, in order to optimise available supplies, power generation on its two renewable obligation contract units has been reduced

Drax PLC (LON:DRX) has warned that, following an unplanned outage on the rail unloading facilities at its power station, biomass deliveries are currently restricted, which it currently expects to lead to a £10mln reduction in underlying earnings (EBITDA) in 2017.

In a statement, the FTSE 250-listed firm said that as a result of the outage, in order to optimise available supplies, power generation on its two renewable obligation contract (ROC) units has been reduced.

READ: Drax appoints ex-CFO of Johnson Matthey as interim CFO

The group said these two units will then be taken offline for a short period. It added that the outage on the rail unloading facilities is currently expected to be completed during January 2018, at which point the ROC units should return to service.

Drax said its contract for difference (CfD) unit and coal operations remain unaffected.

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