Power generation company Drax reported a profit increase for the first half of the year and expects its full-year earnings to reach the “upper end” of forecasts.
Drax achieved a pretax profit of £463 million in the first half, up from £338 million in the same period last year. The company’s adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) grew to £515 million, compared to £417 million last year, attributed to robust renewable generation and pellet production.
Earnings from Biomass Generation climbed to £393 million, up from £226 million, and Drax reported a 32% increase in terawatt hours of electricity generated compared to last year.
In pellet production, Drax produced 2 million tonnes in the first half, slightly above the 1.9 million tonnes from the previous year, with an improved margin.
The company outlined around £4 billion in potential growth investment opportunities linked to the energy transition by 2030, with additional investments anticipated in the 2030s.
“Drax has delivered a strong operational performance, significantly supporting the UK energy system with reliable, renewable power, maintaining energy supply for millions and supporting numerous jobs throughout our supply chain,” stated CEO Will Gardiner.
He added, “We look forward to collaborating with the new UK Government to foster economic growth and urgently advance towards a net-zero electricity system by 2030.”
In light of its results, Drax declared an interim dividend of 10.4p per share, up from 9.2p per share last year, and anticipates a full-year dividend of 26p, nearly 13% higher than the previous year. The company also announced a £300 million share buyback program set to begin in the third quarter.
Looking ahead, Drax projects its adjusted earnings to be around the “top end” of analysts’ estimates.Source link
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Power generation company Drax reported a profit increase for the first half of the year and expects its full-year earnings to reach the “upper end” of forecasts.
Drax achieved a pretax profit of £463 million in the first half, up from £338 million in the same period last year. The company’s adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) grew to £515 million, compared to £417 million last year, attributed to robust renewable generation and pellet production.
Earnings from Biomass Generation climbed to £393 million, up from £226 million, and Drax reported a 32% increase in terawatt hours of electricity generated compared to last year.
In pellet production, Drax produced 2 million tonnes in the first half, slightly above the 1.9 million tonnes from the previous year, with an improved margin.
The company outlined around £4 billion in potential growth investment opportunities linked to the energy transition by 2030, with additional investments anticipated in the 2030s.
“Drax has delivered a strong operational performance, significantly supporting the UK energy system with reliable, renewable power, maintaining energy supply for millions and supporting numerous jobs throughout our supply chain,” stated CEO Will Gardiner.
He added, “We look forward to collaborating with the new UK Government to foster economic growth and urgently advance towards a net-zero electricity system by 2030.”
In light of its results, Drax declared an interim dividend of 10.4p per share, up from 9.2p per share last year, and anticipates a full-year dividend of 26p, nearly 13% higher than the previous year. The company also announced a £300 million share buyback program set to begin in the third quarter.
Looking ahead, Drax projects its adjusted earnings to be around the “top end” of analysts’ estimates.
