Half year results for the six months ended 30 June 2017 - Drax

Half year results for the six months ended 30 June 2017

Drax: delivering growth strategy

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RNS Number : 4383L
Drax Group PLC
(Symbol: DRX)

Six months ended 30 June

H1 2017

H1 2016

Key financial performance measures

EBITDA (£ million)

121

70

Underlying earnings (£ million)

9

17

Underlying earnings per share (pence)

2.2

4.2

Total dividends (pence per share)

4.9

2.1

Net cash from operating activities (£ million)

197

151

Net debt (£ million)

372

85

Statutory accounting measures

(Loss) / profit before tax (£ million)

(83)

184

Reported basic (loss) / earnings per share (pence)

(17)

37

 

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.”

NOTES FOR ANALYSTS AND EDITORS

See: https://otp.tools.investis.com/clients/uk/drax1/rns/regulatory-story.aspx?cid=1607&newsid=892848