Drax first-half profit grows, full-year expectations backed

26th Jul 2022 08:07

(Sharecast News) - Renewable power generator Drax backed its full-year expectations on Tuesday as it posted a rise in first-half profit amid solid demand.

In the six months to 30 June, pre-tax profit rose to £200m from £52m in the same period a year earlier, while adjusted earnings before interest, tax, depreciation and amortisation were £225m, up from £186m.

Chief executive Will Gardiner said: "As the UK's largest generator of renewable power by output, Drax plays a critical role in supporting the country's security of supply.

"As a leading producer of sustainable wood pellets we continue to invest in expanding our pellet production in order to supply the rising global demand for renewable power generated from biomass. We have commissioned new biomass pellet production plants in the US South and expect to take a final investment decision on up to 500,000 tonnes of additional capacity before the end of the year."

Gardiner added that in the UK and the US, the company plans to invest £3bn in renewables.

Drax said its expectations for full-year adjusted EBITDA were unchanged, having announced earlier in July that they were set to be slightly above the top of the range of analyst expectations of between £584m and £635m.