UK's Drax flags 2025 core profit at top end of consensus

(Reuters) -British power company Drax Group on Thursday said it expects its annual adjusted core profit to be at the top end of analyst consensus estimates, helped by sturdy pellet production and biomass generation.

Drax said its pellet production business is performing effectively, with output ahead of last year, with operations at Drax Power Station, the UK’s largest single source of 24/7 renewable power, also progressing well.

"We are working to create value and growth in the short, medium and long-term, aligned to the UK's energy needs," CEO Will Gardiner said in a statement.

Drax, which generates around 6% of Britain's electricity, said it continues to aim to generate recurring adjusted EBITDA of around 600 million pounds ($797.6 million) to 700 million pounds beyond 2027.

Analysts' consensus for 2025 adjusted earnings before interest, taxes, depreciation and amortization was 874 million pounds, with a range of 848 million pounds to 896 million pounds, according to a company-compiled poll.

($1 = 0.7523 pounds)

(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Mrigank Dhaniwala)