Drax reiterates guidance amid solid operational performance
By Iain Gilbert
Date: Thursday 30 Apr 2026
(Sharecast News) - Energy firm Drax said on Thursday that recent trading had remained in line with expectations, with a "good operational performance" across the group and full‑year 2026 adjusted underlying earnings still seen in line with consensus estimates of £643m to £682m.
Drax said its flexible, dispatchable generation and renewable assets continued to support UK energy security amid heightened geopolitical uncertainty, producing on average more than 5% of the UK's electricity and around 10% of its renewable power. It also highlighted the resilience of its biomass supply chain, sourced largely from North America.
The FTSE 250-listed firm highlighted that Downing Street's decision to remove the UK Carbon Price Support from 2028 and extend the Electricity Generator Levy beyond 2028 was not expected to affect 2026 earnings as it did not anticipate paying EGL in 2026, and its main power station will operate under a CfD not subject to the levy from April 2027.
Drax currently has over £1bn of contracted forward power sales for 2026-28 across its RO biomass, pumped storage and hydro assets, with RO generation fully hedged for 2026.
Drax also noted that the first £75m tranche of its £450m share buyback had been finalised, with a second tranche to begin in May. A final dividend of 17.4p per share was due for approval Thursday's annual general meeting.
Chief executive Will Gardiner said: "We have started the year well and have delivered a good operational performance across the Group, supporting UK energy security at a critical time for the country.
"We are at a key moment of transition in our business and in the UK's energy system. With our first battery storage projects and the commissioning of our first OCGT unit progressing, we are growing our UK FlexGen portfolio. We are excited about the potential opportunities to invest further to help the country meet its growing energy needs. We believe these opportunities could create value for stakeholders and offer attractive returns for shareholders, in line with our capital allocation policy."
As of 0830 BST, Drax shares were up 0.58% at 871.80p.
Reporting by Iain Gilbert at Sharecast.com
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