(Reuters) – British power generator Drax on Thursday forecast full-year adjusted core profit slightly above analysts’ expectations as it benefits from strong demand for renewable power.
Demand for renewable energy in the UK has jumped after Russia’s invasion of Ukraine triggered concerns over Europe’s power supply, pushing gas prices to record highs over the past year.
Annual core profit was expected to be in the range of 540 million pounds ($668.79 million) to 606 million pounds, according to a company-compiled consensus of analysts’ estimates.
The company said it generated 20% of UK renewables at peak demand from January to November.
Drax, which continues to benefit from higher power prices, added it will continue to optimise its biomass operations to ensure more renewable power is available especially as the UK looks to face a difficult winter.
($1 = 0.8074 pounds)
(Reporting by Sinchita Mitra in Bengaluru; Editing by Devika Syamnath)
