Friday, August 14, 2020

Drax report ‘robust’ results against COVID backdrop

Drax Group has reported a “robust” performance in spite of the coronavirus crisis.

For the six months to 30 June 2020, the listed energy company and operator of Selby’s Drax Power Station reported adjusted EBITDA of £179 million – up 30% from £138 million in the same period in the previous year.

The results include an estimated £44 million impact of COVID-19 which it said is principally relating to its Customers SME business.

However, the group also reported a total operating loss of £32 million, compared to an operating profit of £34 million in the same period last year.

The group also hailed its renewable efforts with its biomass self-supply reducing 9% in cost whilst rising 15% in production and improved quality when compared with H1 2019.

Moreover, the group is responsible for generating 11% of the UK’s renewable electricity.

“With these robust half-year results, Drax is delivering for shareholders with an increased dividend while continuing to support our employees, communities and customers during the COVID-19 crisis,” said Will Gardiner, Chief Executive of Drax Group.

“As well as generating the flexible, reliable and renewable electricity the UK economy needs, we’re delivering against our strategy to reduce the costs of our sustainable biomass and we’re continuing to make progress pioneering world-leading bioenergy with carbon capture technologies, known as BECCS, to deliver negative emissions and help the UK meet its 2050 net zero carbon target.

“National Grid stated this week that the UK can’t reach net zero by 2050 without negative emissions from bioenergy with carbon capture and storage. BECCS delivers for the environment and also provides an opportunity to create jobs and clean economic growth in the North and around the country.”

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