26th Jul 2024 14:40
(Alliance News) - Drax Group PLC on Friday reported strong double-digit growth in the first half as the company prepares to become a key player in the UK's future energy strategy.
The Selby, England-based power generation and carbon capture technology company said in the first half that ended June 30, pretax profit rose 37% to GBP463.2 million from GBP338.1 million the previous year.
Revenue increased 19% to GBP3.16 billion from a restated GBP3.89 billion, leading Drax to raise its interim dividend by 13% to 10.4 pence per share from 9.2p.
Adjusted earnings before, interest, taxes, depreciation, and amortisation grew 24% to GBP515 million from GBP417 million, while net debt was reduced by 19% to GBP1.04 billion from GBP1.27 billion.
Chief Executive Officer Will Gardiner commented: "Drax has delivered a strong operational performance, playing an important role supporting the UK energy system...We look forward to working with the new UK Government to help grow the economy and take steps urgently to deliver a net zero electricity system by 2030."
So far this year, capital investment stood at GBP147 million with the company aiming to invest between GBP360 million to GBP400 million by year's end, down from GBP519 last year.
As at July 17, analyst consensus for full-year adjusted Ebitda was GBP961 million, with a range of GBP881 million to GBP996 million.
The company expects it will achieve the top end of its estimated outlook, down from GBP1.01 billion in 2023, and management said the full-year dividend will increase 13% to 26.0p from 23.1p last year.
Drax shares were up 14% to 647.00p each in London on Friday afternoon.
By Elijah Dale, Alliance News reporter
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