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August 2, 2016

UK: Drax doubles electricity generation from biomass; EBITDA drops 42% in H1/2016

UK: Drax doubles electricity generation from biomass; EBITDA drops 42% in H1/2016

UK's Drax power group has recently published its 1H/2016 results, announcing a doubling of its electricity generation from biomass. Also, the company reported an "operationally strong" business, even if its profits fell by £ 50 million.

Drax's EBITDA (earnings before interest, taxes, depreciation and amortization) in the mentioned period of the year decreased by 42% at £70 million, compare to the £ 120 million from the 1H/2015.

Pre-tax profits for the group until June 30 amounted to £ 184 million, up from the £ 53 million from the same period last year.

Drax Group Plc reduced its dependency on commodity prices.

"Drax delivered a good operational performance over the last six months, a period during which around 70% of our electricity generation was renewable - enough to power Leeds, Manchester, Sheffield and Liverpool combined - truly a renewable northern powerhouse," said Dorothy Thompson, CEO of Drax.

Regarding the Brexit and its effects on the company's production and earnings, the company looks forward educating the country’s new government of the benefits of biomass.

Drax’s North Yorkshire-based plant was 70% provided with biomass during the first half of 2016, compared to the 37% of the same period from 2015. Meanwhile, the company had upgraded a third unit to run on wood pellets. The biomass power generated by Drax supplied nearly 20% of renewables and 8% of the total power in the UK.

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