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Drax has announced that it estimates a £60m impact on its full year earnings due to COVID-19.
Chloe Shakesby

Yorkshire power producer estimates £60m coronavirus earnings impact

A Yorkshire power producer has announced that it estimates a £60m impact on its full year earnings due to COVID-19.

Drax, which is based in Selby, has said that despite the predicted impact of the pandemic, its full year EBITDA is currently in line with expectations.

The company has said that its strategic focus remains on biomass supply chain expansions and cost reductions.

It also said that it has “strong contracted forward power sales” going into the rest of 2020 and 2021.

Will Gardiner, CEO of Drax, commented: “With our strong balance sheet, robust trading and operational performance, and resilient sustainable biomass supply chain, Drax is in a strong position to support its employees, business customers and communities during the COVID-19 crisis, while continuing to generate returns for shareholders.

“As an important part of the UK’s critical national infrastructure, we recognise our responsibility to support the country’s response to COVID-19.

“We have strong business continuity plans in place and are in close contact with the UK Government.

“Our dedicated teams across England, Scotland and Wales, supported by our US biomass colleagues and business partners, are working around the clock to generate and supply the flexible, low-carbon and renewable electricity the UK needs, not least to the 250,000 businesses, including care homes, hospitals and schools we supply.

“The group is also providing support for communities and others affected by Covid-19.

“Nevertheless, it is still early in this pandemic. As COVID-19 continues to develop, we remain vigilant in looking to protect all our stakeholders and will report further if there are significant changes to our outlook for 2020.”

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