Profits rise at Drax as it marks 50 years of operations

Power station operator, Drax, has reported a robust performance in its half year results for the six months ending 30 June 2024.

It achieved adjusted EBITDA for the period of £515m, an increase of 24% on the prior period (H1 2023: £417m).

And the business recorded a total operating profit of £518m, representing an increase of 32% (H1 2023: £392m), along with a pre-tax profit of £463m (H1 2023: £338m).

Will Gardiner, CEO, said: “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.

“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.

“We believe Drax and our partners across the Humber and Scotland can accelerate growth, create thousands of new jobs and channel billions in private investment into carbon capture and green energy projects, subject to the right Government policies to support regional development plans.”

The business adds it will be starting a share buyback programme, for the purchase of up to £300m over a two-year period, which is expected to begin in quarter three 2024.

Drax says its capital expenditure in H1 2024 totalled £147m (H1 2023: £210m), of which £108m related to projects supporting strategic growth.