Financial and Operational Highlights
EBITDA of £121 million, an increase of £51 million on H1 2016
- Strong operational performance
- Improved earnings from renewable generation
- Profitable and growing business to business (B2B) retail operation - Opus Energy and Haven Power
Statutory loss before tax includes unrealised losses related to foreign currency hedging of £65 million
Strong cash flows and balance sheet
- Refinancing complete and capital allocation policy confirmed
Interim dividend of £20 million, representing 40% of the expected full year - £50 million
Strategic Highlights and Outlook
Focus on higher quality earnings with targeted investment in long-term growth opportunities
Good progress with strategic initiatives
- Opus Energy and LaSalle Bioenergy acquisitions completed H1 2017, integration proceeding well
- Focus on research and innovation, including development of options for future generation
Maintaining operational excellence across the Group
2017 expectations unchanged, including c.2x net debt to EBITDA at year end
Dorothy Thompson, Chief Executive of Drax Group plc, said:
"We have made good progress with our strategy during the first half of 2017, acquiring Opus Energy and a third compressed wood pellet plant, in addition to refinancing and implementing a new dividend policy.
"Central to our strategy is the delivery of targeted growth through deploying our expertise across our markets and, in so doing, diversifying, growing and improving the quality of earnings whilst reducing exposure to commodity market volatility.
"Delivering reliable renewable electricity remains at the heart of our business. We continue to produce at record levels, helping to keep the UK's electricity system secure and supplying our customers through our retail business. With the right conditions, we can do even more. We are progressing our four new rapid response gas power projects and our research and innovation work has identified potentially attractive options to repurpose our remaining coal assets.
"We continue to play a vital role in the UK's energy infrastructure and our strategy is helping to change the way energy is generated, supplied and used for a better future."
