Report published September 14, 2026

Goldman Sachs Utilities Daily: Drax EBITDA Upgrade Outlook & RWE UAE Partnerships

Goldman Sachs · September 14, 2026

Goldman Sachs reiterates a Buy rating on Drax Group, anticipating positive EBITDA revisions at its upcoming late-September trading update driven by accelerating UK power prices and wider intraday spreads. The daily note also highlights RWE's >€3bn offshore wind and LNG partnership with UAE entities, along with regional European energy sector updates.

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Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.Goldman Sachs reiterates a Buy rating on Drax Group ahead of an expected late-September trading update, with rising UK power prices and intraday spreads pointing to upside to FY EBITDA consensus of £696m.
2.RWE and UAE entities agreed to an offshore wind MoU (with Masdar for 2027 German auctions, >€3bn indicative value) and an LNG Letter of Intent (with ADNOC).
3.Drax offers long-term cash generation upside, with Goldman Sachs estimating >15% FCF yield p.a. beyond FY2031 even without a CfD extension, plus optionality from data center development and pipeline investments.

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Report data

Key figures extracted from this report

Metric	Estimate	Context
Reuters Consensus EBITDA for Drax	696 GBP million	Goldman Sachs estimates are 2% ahead of consensus with upside scope under prevailing market conditions.
Drax Free Cash Flow Yield	>15%	Estimated annual FCF yield even without a CfD extension at Drax Power Station.
RWE and Masdar Offshore Wind Agreement Indicative Investment Value	>3 EUR billion	Indicative value for potential joint participation in German offshore wind auctions in 2027.
Nordex Repowering Wind Turbine Order Capacity	34 MW	Five N175/6.X turbines replacing five 3 MW turbines at Rauschenberg wind farm in Hesse, Germany.
Dutch Natural Gas Storage Level	52%	Dutch gas reserves currently sit at record low levels as the government cut its winter storage target.