31st Jul 2025 10:40
(Alliance News) - Drax Group PLC on Thursday expanded its share buyback programme, and it left its annual financial guidance unchanged.
Drax shares rose 4.7% to 710.02 pence each in London on Thursday morning.
The Yorkshire, England-based power generator said pretax profit in the first half of 2025 fell 39% to GBP280.7 million from GBP463.2 million a year before. Revenue declined 16% to GBP2.65 billion from GBP3.16 billion.
Adjusted earnings before interest, tax, depreciation, and amortisation fell 11% to GBP460.9 million from GBP515.2 million a year earlier.
Drax put the weaker earnings to a "lower achieved power price".
"In the first half of 2025, we have delivered a strong operational and financial performance, providing the reliable renewable electricity, flexibility and system support services that the grid needs. Our dispatchable 24/7 generation portfolio, backed up by our resilient North American supply chain, enables us to operate the UK's largest single source of renewable power, and through our flexibility we are an enabler of more renewables on the system, supporting lower overall system costs and decarbonisation," Drax said.
Drax, which operates the Drax power station in Selby, North Yorkshire, said its GBP300 million share buyback programme continues, with GBP272 million of it completed.
In addition, Drax announced an "additional GBP450 million three-year buyback extension to follow". As well, it lifted its interim cash dividend by 12% to 11.6p per share from 10.4p.
Drax left its full-year adjusted Ebitda outlook unchanged.
Back in May, Drax forecast adjusted Ebitda for 2025 at the top end of a GBP848 million to GBP896 million consensus range at the time. On Thursday, it noted the most consensus range was GBP889 million to GBP910 million.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Drax