Drax reports 101% surge in first half EBITDA

The energy giant said the growth was driven by system support services and power generation

Drax has announced a significant upswing in its financial performance for the first half of 2023, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) surging by 101% compared to the same period in 2022.

The company’s adjusted EBITDA, excluding Electricity Generator Levy (EGL), reached £453 million.

The adjusted EBITDA (including EGL) for 2023 was £417 million, compared to £225 million in 2022.

The group has also reported an operating profit of £392 million (compared to £207 million in 2022) and a profit before tax of £338 million (compared to £200 million in 2022).

Will Gardiner, Chief Executive Officer of Drax Group, said: “We continue to focus on our role as the UK’s leading generator of flexible renewable power and our ambition to be a world leader in carbon removals.

“To that end, in the US, we have made good progress screening options for bioenergy with carbon capture and storage (BECCS) projects which can deliver long-term, large-scale carbon removal and attractive opportunities for growth.

“We are excited about the opportunity for BECCS in the UK and are in formal discussions with the UK Government to facilitate the transition to BECCS at Drax Power Station by 2030.”

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