North Yorkshire power generator Drax Group said it expected 2024 full year adjusted EBITDA to be around the top end of analysts’ consensus estimates, on the back of strong performance in its pellet production and biomass generation businesses.
If the good operational performance continues, Drax said it now expects earnings before interest, tax, depreciation and amortisation, excluding the impact of exceptional items and certain remeasurements, to be at the top end of analysts’ estimate range of £993 million to £1.039 billion.
Drax Group CEO, Will Gardiner said: “We continue to deliver a strong operational performance, 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.”
“Our Flexible Generation and Pellet Production businesses are making good progress towards our target to deliver post 2027 recurring EBITDA over £500 million and we are continuing to develop options for growth, while remaining disciplined on capital allocation.”
“The UK Government aims to deliver a clean energy system by 2030, and NESO’s Clean Power 2030 report shows that large-scale biomass, BECCS and flexible generation are included in both pathways. We are excited to be a part of that process. Our investment in BECCS remains contingent on gaining further clarity from UK Government on the frameworks for continuing the operation of the power station beyond 2027 and supporting BECCS conversions from 2030.
“Subject to the right investment framework and milestones, Drax will develop its options for BECCS and pumped storage hydro which could create thousands of new jobs and private investment into green energy projects in both Yorkshire and Scotland.”
“We believe that biomass has a growing role to play in the energy transition, such as in the production of SAF. We have also launched our new Elimini carbon removals business which aims to develop projects providing 24/7 power and carbon removals outside the UK, offering long-term investment opportunities in what we believe could be a major new global market.”
Drax will report its full year results on Thursday 27 February 2025.