Drax shares boosted by first half earning result

28th Jul 2015 09:11

(ShareCast News) - Shares in electricity company Drax were up by more than 10% after the company said its earnings for the first half were up 18%.At 0823 BST shares were up 10.12% to 278.06p after the company said its first half profit was up 18% to £120m.Drax reported underlying earnings per share for the six months ended 30 June at 10.2p, up from last year's 9.4p. The energy company's higher production had boosted earnings.However the company noted UK green policy changes would reduce earnings by about £30 million in the second half of this year and about £60 million in 2016.Drax, which produces 8% of the UK's electricity, said it would undergo a strategic review following after the government said it would cut renewable energy subsidies.Chief executive Dorothy Thompson said the company continued its long term strategy to become a biomass fuelled power provider. Biomass sales were 37% of net power sales in the first six months of the year, compared with 23% of sale the first half of last year."While there are elements outside our control, particularly regulatory challenges and weak commodity markets, the underlying fundamentals of the group remain strong."