Healthy financial performance at Drax as talks with Government continue
North Yorkshire-based energy group Drax has highlighted a strong financial performance and returns to shareholders in its half year results for the six months ended 30 June 2023.
The business has reported adjusted EBITDA of £453m, up 101%, (H1 2022: £225m), along with strong liquidity and balance sheet – £586m of cash and committed facilities as of 30 June 2023. Drax also recorded a pre-tax profit of £338m (2022: £200m).
Will Gardiner, CEO, said: “In the first half of 2023, we delivered a strong system support and generation performance, providing dispatchable, renewable power for millions of UK homes and businesses.
“Drax Power Station remained the UK’s single largest provider of renewable energy by output during the period.
“We are excited about the opportunity for Bioenergy with carbon capture and storage (BECCS) in the UK and are in formal discussions with the UK Government to facilitate the transition to BECCS at Drax Power Station by 2030.
“Our plans could create thousands of new jobs in the Humber region, help the UK meet its carbon removals targets and support long-term energy security.”
Drax adds that it is currently progressing options for £7bn worth of strategic growth opportunities in 2024-2030 – primarily related to BECCS.
But it notes that in the UK, BECCS investment has been paused, subject to further clarity on Government support for this technology at Drax Power Station.
