Drax posts jump in 1H profits
By Alexander Bueso
Date: Friday 26 Jul 2024
(Sharecast News) - Drax Group posted a big jump in interim profits, alongside lower debt and higher dividends.
For the six months ending on 30 June, the renewable energy group said that adjusted earnings before interest, taxes, depreciation and amortisation fell by 23.5% to £515m.
"Drax has delivered a strong operational performance, playing an important role supporting the UK energy system with dispatchable, renewable power, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain," chief executive officer Will Gardiner said.
"As well as celebrating 50 years of operations in 2024, we are excited about the opportunities for Drax Power Station, including bioenergy with carbon capture and storage (BECCS). Both the National Grid ESO and the UK's Climate Change Committee have recently reiterated that BECCS is important for the UK to achieve its decarbonisation goals."
Net debt was reduced by 19% to approximately £1.04bn.
On the outlook, the company said that full-year operating profits on an EBITDA basis were seen around the top end of analysts' estimates.
Furthermore, its outlook for adjusted EBITDA in 2025 was supported by a "strong" hedge book.
The dividend per share was hiked from 9.2p one year before to 10.4p.
As of 0859 BST, shares of Drax were jumping by 13.50% to 6430p.
-- More to follow --
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