Power group Drax has reveal a fall in profits for the year reflecting lower achieved power prices and a substantial non-cash impairment charge.<\/p>\n
In the year to 31 December, operating profit fell to \u00a3241m, compared with \u00a3850m in 2024. The decline was primarily driven by a \u00a3378m non-cash impairment. On an adjusted basis, EBITDA decreased to \u00a3947m from \u00a31,064m the previous year. However, it was higher than market expectations of \u00a3914m.<\/p>\n
The group reported adjusted basic earnings per share of 137.7p, up from 128.4p in 2024. Statutory performance, however, reflected the impact of impairment and lower wholesale pricing.<\/p>\n
Total renewable generation reached record levels during the year. Drax said it produced enough renewable electricity to supply around 6% of the UK\u2019s total power needs and 11% of its renewable electricity output.<\/p>\n
Net debt reduced to \u00a3784m at year end, down from \u00a3992m in 2024. The group said it maintained significant liquidity and access to committed facilities.<\/p>\n
Capital investment during the year included further development of battery energy storage projects and flexible generation assets, with total capital expenditure reflecting continued investment in its generation portfolio and energy storage pipeline.<\/p>\n
Looking ahead, the company said it expects 2026 adjusted EBITDA to be broadly in line with current market consensus expectations and outlined a post-2027 structural EBITDA target of between \u00a3600m and \u00a3700m per annum from its biomass, pellet production and flexible generation operations.<\/p>\n
Drax Group CEO, Will Gardiner, said: “In 2025, we produced more renewable power than ever before, delivering energy security for the UK. Our colleagues and supply chain partners work around the clock to help keep the lights on for millions of the UK’s households and businesses, no matter the weather.<\/p>\n
“The signing of the new low carbon dispatchable CfD is an inflection point for the Group. It provides the foundation for us to keep supporting the UK with the flexible, renewable power it needs for security of supply this decade and beyond.<\/p>\n
“The energy transition and growth in AI are creating opportunities for us to invest and grow our business further in line with the country’s energy needs. We are making good progress on this with our initial investments in Battery Energy Storage Systems (BESS), which we see as an attractive market. We will continue to explore options to invest in flexible and renewable energy, creating value for stakeholders and attractive returns for shareholders in line with our capital allocation policy.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Drax Group hit by \u00a3378m impairment charge, while renewable generation hit record levels<\/p>\n","protected":false},"author":271992,"featured_media":2101928,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262,120781],"coauthors":[137100],"class_list":["post-2150887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-markets","tag-featured-story","tag-yorkshire"],"yoast_head":"\n