Drax earnings rise, helped by renewable output

Selby, North Yorkshire-based power company Drax Group plc said on Tuesday its 2018 earnings before interest, tax, depreciation and amortisation (EBITDA) rose 9% to £250 million, helped by higher renewable power generation from its biomass units.

Drax chairman Philip Cox said the recent acquisition of a portfolio of pumped storage, hydro and gas generation assets from ScottishPower was “highly complementary” to Drax’s strategy.

Drax Group CEO Will Gardiner said: “Drax is now one of the leading generators of flexible, low carbon and renewable electricity in the UK.

“As the grid decarbonises, our ability to support intermittent renewables will become increasingly important as we strive to deliver our purpose of enabling a zero carbon, lower cost energy future.

“Drax performed well in 2018. Our commitment to operating safely and sustainably remains at our core.

“We commissioned our third pellet production plant, which contributed to our good results.

“After a difficult first quarter for our Power Generation business, we delivered strong availability and financial results.

“Whilst the year was challenging for our B2B Energy Supply business, we continued to grow our customer base and are investing in the significant opportunity created by smart meters. 

“We are confident in our ability to continue growing our earnings and advancing our strategy through the year.

“We have attractive investment opportunities throughout our business, and while short-term uncertainty over the Capacity Market remains, we look forward to developing those opportunities in a disciplined fashion.”

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