Drax agrees to new 12 month contract with National Grid

Energy firm Drax has signed a new 12 month contract with National Grid to provide certain ancillary services, commencing in April 2016.

Due to the current estimates of the revenue and costs associated with the year-long contract, Drax now expects 2016 EBITDA to be towards the top end of the range of current market forecasts.

The contract announcement comes just over a month afterDrax reported a significant fall in profitsin what has been described as a “challenging year.”

The North Yorkshire-based company announced a 64% drop in pre-tax profits from £166m to £59m in the financial year ending December 2015.

Dorothy Thompson, chief executive officer of Drax, said: “We are pleased to have agreed this contract with National Grid.

“At a time when many power stations are closing, this contract recognises the supportive role Drax continues to play in providing secure and dependable electricity to the UK.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.