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Energy company Drex has said it expects earnings to be at the “top end” of market forecasts after a “strong” performance this year, as it announced plans to develop a data center at its site. yorkshire site.
The FTSE 250 firm said the business was boosted by the performance of its flexible production, pellet production and biomass operations.
It told shareholders that full-year adjusted earnings for 2025 would be “around the top of consensus estimates” after a positive second half of the year.
Drax Group Chief Executive Will Gardiner said: “In line with the UK’s future energy needs and based on a strong balance sheet, good cash generation and a disciplined approach to capital allocation, we are working to maximize the value of our existing portfolio while driving short, medium and long-term growth.
“Our year-to-date operational and financial performance has been strong, and we are focused on delivering approximately £3 billion of free cash flow between 2025 and 2031, which can support investments in energy security, data centers and flexible, renewable energy that can deliver long-term value creation and returns to shareholders.”
The company said it currently has £2.3bn of contracted power sales across its renewables obligee biomass, pumped storage and hydro generation assets between now and the first quarter of 2027.
On Thursday, Drax also announced plans to re-use existing infrastructure at its Yorkshire power station to develop a data centre.
It said the 100MW data center could be operational by 2027.
Drax said it expected to allocate up to £2bn to incremental investments primarily in flexible and renewable energy.
Earlier this year, Drax confirmed it was being investigated by the UK financial watchdog over its sourcing of wood for biomass pellets in the wake of whistleblower claims.