North Yorkshire power generator Drax Group forecast earnings for the full year at the top end of analysts’ estimates on Friday, as it reported higher profit for the first half of the financial year. 

Drax also said it will commence a share buyback programme for the purchase of up to £300 million of its shares over a two-year period, expected to begin in Q3 of 2024.

Its shares rose nearly 13% on the London Stock Exchange. 

The company, which runs the UK’s largest renewable power station near Selby in North Yorkshire, reported adjusted EBITDA of £515 million for the latest six-month period, up 24% from a year ago, helped by its renewable power generation and pellet production operations. Total operating profit was £518 million, up 32% from a year ago. 

For the full year, it forecast adjusted EBITDA “around the top end of analysts’ consensus estimates,” which currently range from £881 million to £996 million. 

The results reflected “a strong renewable power generation and system support performance across the portfolio and an improvement in Pellet Production, with both higher production and margins versus H1 2023,” the company said. 

Will Gardiner, CEO of Drax Group, said: “Drax has delivered a strong operational performance, playing an important role supporting the UK energy system with dispatchable, renewable power, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain.”

Between April 2023 and March 2024, Drax’s Selby plant generated over 4% of the UK’s electricity and 9% of its renewable power. During this period, it produced on average 16% of the UK’s renewable power at times of peak demand and on certain days over 60%.