Drax Group generates £13.8m profit following Scottish Power deal

Drax Group plc has recorded double-digit profits in a year that saw the energy firm expand its low-carbon capabilities.

The company has this morning (February 26) reported a profit before tax of £13.8m for the 12 months to December 31 2018, up from a pre-tax loss of £204m the year previous.

Drax, which operates the UK’s largest power station in North Yorkshire, generated revenues of £4.23bn in the period, compared with £3.68bn in 2017.

The company made moves last year to acquire part of Scottish Power’s pumped storage, hydro and gas-fired generation portfolio.

The deal was completed for £702m and covered Scottish Power Generation Group along with its SMW subsidiary,

Will Gardiner, CEO of Drax Group, 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.”

He continued: “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.”

Speaking further, Mr Gardiner said the first quarter was “difficult” for Drax’s power generation business, and the year as a whole was “challenging” for the group’s B2B energy supply operation.

He added: “[But] we continued to grow our customer base and are investing in the significant opportunity created by smart meters.

“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.”

It follows data released in November that revealed how Drax Group made a contribution of almost £1.6bn towards the UK GDP in 2017 - including £609m in the Northern Powerhouse region.