POWER giant Drax has said it expects to increase profits this year despite challenging commodity markets because it has secured strong orders for the next few years.

The company, based near Selby, said in an interim management statement published today for the period from January 1 2010 to date, that it has delivered good operational performance so far in 2010.

“We have the ability to take advantage of Drax Power Station's flexibility and reliability to improve profitability in such market conditions,” it said. “Our forward contracted position represents an accelerated hedge, captured mainly through mid-2009 in response to market conditions at that time.”

The business released figures for its forthcoming contracts for the years 2010, 2011 and 2012, which include a five and a quarter year contract with Centrica, which started on October 1, 2007.

In total, it is already contracted to provide 24.5 terawatt hours (TWh) in 2010, 15.2TWh in 2011 and 9.5TWh in 2012.

Drax made a profit before tax of £157.8 million in the year ended December 31, 2009, down from £442.5m in 2008.