Drax publishes results for first half 2018

Major British power generator Drax has reported its half year results for the six months ended 30 June 2018.

Although the company’s full year expectations remain unchanged, results from the first half of the year were impacted by two unplanned outages.

Drax currently runs Europe’s biggest biomass-fuelled power station, near Selby in Yorkshire. As part of a major decarbonisation project, Drax is converting the Yorkshire facility ‘and associated supply chain infrastructure’ from coal to sustainable biomass.

Earlier this year, Drax took the fourth coal-fired power generating unit offline as it prepared to convert it to running on biomass.

According to the figures, Drax’s first half 2018 EBITDA (Earnings before interest, taxes, depreciation, and amortisation) was £102 million (€114 million), compared to £121 million in the first half 2017. Underlying earnings meanwhile, were £7 million, compared to £121 million in the same period of 2017.

Drax puts the reduction in earnings down to the two unplanned outages. Will Gardiner, Chief Executive of Drax Group, says that “Full year EBITDA expectations remain unchanged. However, first half EBITDA was lower, principally due to two specific generation outages.”

“We made excellent progress with our Pellet Production business, driving down costs while producing at record levels and our B2B Energy Supply business continues to increase customer numbers.”

“We remain focused on safe and efficient operations and returns to shareholders and expect to declare a full year dividend of £56 million for 2018.”