Drax reports strong growth in pre-tax earnings amid UK's 'energy revolution'

Drax Group, the North Yorkshire-based energy business, reported a 64% rise in pre-tax earnings for a year which has seen “an energy revolution” in the UK.

For the twelve months ending 31st December, Selby-based Drax announced that EBITDA (earnings before interest, tax, depreciation and amortisation) rose to £229m, up from £140m the year before.

The company saw EBITDA for Pellet Production increase to £12m with production growing by 35%, and EBITDA for Power Generation was also up £64m to £238m due to contribution from biomass generation.

In addition, EBITDA for B2B Energy Supply was £29m following on from the £340m acquisition of Opus Energy.

However, Drax did suffer a £183m loss in pre-tax profit, compared to a pre-tax profit of £197m achieved the previous year. The company said this was driven by unrealised losses related to foreign currency hedging of £156m.

Will Gardiner, Chief Executive of Drax Group plc, said: “We continued to transform the business in 2017, delivering a strong EBITDA performance, in line with expectations. This was delivered by all parts of the business making positive contributions for the first time.

“We also made good progress delivering our strategy, which is clear and unchanged. We are increasing biomass self-supply, developing projects to diversify our generation mix and growing our B2B energy supply business.

“The UK is undergoing an energy revolution, starting with a significant reduction in carbon emissions, and to support that we are helping to change the way energy is generated, supplied and used.”

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