Drax profits rise on renewable power generation

(Sharecast News) - UK energy provider Drax on Thursday posted an increase in annual profit driven by an increase in renewable power generation and an improved performance from its pellet division. The company reported earnings before interest, tax, depreciation and amortization of £1.06bn for 2024, up from £1bn a year earlier.

Drax, which burns wood pellets to produce electricity, said biomass power production rose 27% year on year. The UK government earlier this month extended a deadline on subsidies to 2031 from 2027 although the payouts were halved.

Chief executive Will Gardiner said the deal was a "major milestone for the business and provides the basis on which the site continues to generate electricity for the country, especially when the wind isn't blowing, and the sun isn't shining".

"This is an investment in security of supply, which provides a net saving for consumers and helps deliver the government's Clean Power 2030 goal. It also offers a potential pathway for long-term growth for our business."

Reporting by Frank Prenesti for Sharecast.com