Drax Group PLC (LON:DRX) has reiterated its guidance for the current year while also revealing plans to increase the self-supply of biomass material to power its electricity plants.
The FTSE 250 power firm said its adjusted earnings (EBITDA) forecasts were “unchanged” for the year, with the latest analyst consensus at £409mln, thanks to a strong performance from assets acquired in December 2018.
READ: Drax shares power up as it reports jump in quarterly earnings
Meanwhile, the company said it was aiming to supply 80% of the biomass it currently uses to generate power from its own sources by 2027, up from the current level of 20%, a move it says will reduce costs and risks to its supply chain, allowing biomass generation to remain “viable in the long term”.
Drax is also planning to increase its self-supply capacity to 5mln tonnes, up from its current capacity of around 1.85mln tonnes.
In early trading on Tuesday, Drax shares were 0.6% higher at 298p.
--corrects EBITDA forecasts--