Drax sees pathway to long-term growth as it issues full year results
Drax Group, operator of Drax Power Station in North Yorkshire, has reported pre-tax profits of £753m (2023: £796m) in its full year results for the 12 months ended 31 December 2024.
The group has highlighted a strong operational and financial performance, along with increasing visibility on its long-term outlook.
It has also recorded capital investment of £332m (2023: £519m), with expected capital investment for 2025 expected to be in the region of £180m to 220m.
Will Gardiner, CEO, said: “Drax has delivered a strong operational and financial performance while supporting UK energy security.
“We produced over 25% more dispatchable renewable power in 2024, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain.
“Signing a Heads of Terms with the UK Government for a new low-carbon dispatchable Contract for Difference (CfD) for Drax Power Station is a major milestone for the business and provides the basis on which the site continues to generate electricity for the country, especially when the wind isn’t blowing, and the sun isn’t shining.
“This is an investment in security of supply, which provides a net saving for consumers and helps deliver the Government’s Clean Power 2030 goal. It also offers a potential pathway for long-term growth for our business, including options for the development of BECCS (bioenergy with carbon capture and storage) and a data centre at Drax.”
The group adds that its capital allocation policy of maintaining a strong balance sheet and investing in the core business remains unchanged.
Drax began a £300m share buyback in August 2024. About £150m of this was complete in the first seven months, with the third £75m tranche to start shortly.
