Weaker prices hit Drax profits

4th Aug 2009 07:57

Power generator Drax has made "steady" progress in the first six months of 2009, although falling power prices sent profit tumbling.Profit before tax for the half year slumped to £33.8m from £149.5m a year earlier on revenue down to £707m from £802m.Drax said the results reflected a drop in the average achieved power price and power sold, although that had been partially offset by lower fuel and carbon costs."We have made steady progress during the first six months of the year, despite operating in a challenging trading environment, "the UK mid-cap said."We are on course to achieve the cost reduction and cash management targets that we set ourselves earlier in the year. Further, given the current and forecast market conditions, we believe we have already taken appropriate action to secure margins for next year which will be higher than in the current year."The interim dividend drops to 4.1p a share from 5p last time.