UK's Drax lifts 2026 profit outlook as heatwave boosts power demand

Sept 17 (Reuters) - British power generator Drax DRX.L on Thursday said it expects full-year adjusted core profit at the top end of market consensus, as a summer heatwave fuelled demand and its acquisition of Bluefield Solar Income Fund boosted capacity.

Here are some details:

• The company now expects 2026 adjusted core profit to be around the top of a range of analyst estimates of £680 million to £711 million ($910.11 million to $951.60 million), up from earlier guidance of £665 million that had excluded the Bluefield deal.

• Drax said its generation assets helped balance the grid through the summer heatwave in the UK, adding 0.3 terawatt-hours of contracted power sales at an average price of £175.9 per megawatt-hour.

• The completion of the Bluefield acquisition in July also lifted total capacity under management to about 6.1 gigawatts

• Drax plans to operate Bluefield as a dedicated Solar & Wind segment, alongside its flexible generation and biomass businesses.

• The expansion comes as Britain races to grow its AI and data centre infrastructure while accelerating its renewable energy buildup to meet rising electricity demand.

• Drax said it plans to submit a planning application in the coming months for the first phase of a data centre at its Selby site, involving an initial 100-megawatt facility.

($1 = 0.7472 pounds)