Drax profits fall on weak UK power prices
By Frank Prenesti
Date: Thursday 30 Jul 2026
(Sharecast News) - Energy supplier Drax reported a 39% fall in first‑half profit, reflecting weaker UK power prices and lower generation margins. The group said market conditions remained challenging through the period, with reduced volatility and lower captured prices weighing on earnings.
Revenue was broadly stable, supported by contracted generation and ancillary services, although this was offset by lower realised power prices. Drax said its biomass operations continued to run reliably, with output in line with expectations.
Operating costs increased due to higher maintenance activity and inflationary pressures across the supply chain. The company said it remained focused on cost control and efficiency measures to mitigate the impact of lower power prices.
Drax reiterated its strategic priorities, including progressing its BECCS plans and maintaining reliable generation across its portfolio. It said it expects market conditions to remain subdued in the near term.
In a separate statement, Drax said its recommended all-cash acquisition of Bluefield Solar Income Fund had cleared the final UK national security hurdle, with the deal now expected to complete on July 31.
Reporting by Frank Prenesti for Sharecast.com
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