29th Jul 2021 11:45
(Alliance News) - Drax Group PLC on Thursday said its full-year expectations remain unchanged as it swung to half-year profit.
Shares in Drax were down 3.8% to 413.60 pence each in London on Thursday morning.
Pretax profit for the six months that ended June 30 was GBP51.8 million, swinging year-on-year from a loss of GBP85.3 million.
The Selby, Yorkshire-based electrical power station operator posted revenue of GBP2.18 billion, up 2.9% from GBP2.12 million.
The company said that this solid performance reflects "increased production of lower cost biomass, the acquisition of Pinnacle and an improvement in the customers business following the easing of lockdown restrictions in the UK, offsetting additional biomass cost in generation."
Drax completed the acquisition of Pinnacle Renewable Energy for GBP226 million in April.
Drax declared an interim dividend of 7.5 pence per share, up 10% from 6.8 pence the prior year.
The firm expects full-year adjusted earnings before interest, tax, depreciation and amortization to remain unchanged, assuming good operational availability for the remainder of 2021 and no additional significant impact from Covid-19 in the second half of the year.
Drax said it is "satisfied that the group has sufficient headroom in its available cash and committed facilities, when combined with available mitigating actions, to be able to meet its liabilities as they fall due for the foreseeable future across a range of scenarios."
By Amrit Sahota; [email protected]
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