Britain's Drax announces $187 million buyback, lowers annual capex outlook

(Reuters) - Drax Group Plc announced a 150 million pound ($186.60 million) share buyback programme and lowered its annual capital expenditure forecast, after it paused further investment in projects to capture and store carbon dioxide in the UK.

The British power generator said on Wednesday it intended to commence the buyback programme in the second quarter and complete it by the end of the year.

The London-listed group's shares were up 4% at 642 pence as of 0740 GMT.

Britain laid out plans last month to boost its energy security and independence through investment in efforts to move towards cleaner, more affordable energy sources including projects to capture and store carbon dioxide.

Drax, however, had paused its planned multi-million pounds investment in the UK's bioenergy with carbon capture and storage (BECCS) project until it gets more clarity over government support.

The group said it expected capital expenditure this year to be in the range of 520 million pounds to 580 million pounds, compared with its prior forecast of 570 million pounds to 630 million pounds.

The group also said it expected annual adjusted core profit to be in line with market expectations.

($1 = 0.8039 pounds)

(Reporting by Muhammed Husain in Bengaluru; Editing by Rashmi Aich)