Drax reduces 2013 interim dividend by 40%

DividendMax Ltd.

Drax reduces 2013 interim dividend by 40%

Six months ended 30 June



Key financial performance measures



EBITDA (£ million) (1)



Underlying earnings per share (pence) (2)



Interim dividend (pence per share) (3)






Statutory accounting measures



Profit before tax (£ million)



Reported basic earnings per share (pence)






Financial and Operational Highlights

H1 2013 underlying profits in line with expectations

Year on year reduction reflects increasing carbon costs - including UK carbon tax from April

Strong hedge - doubled 2014 forward sales in H1

Strong balance sheet - £245 million net cash at 30 June 2013

Biomass Transformation Highlights

First unit converted in April and performing to plan

Capital investments on schedule and budget

Construction of US-based pellet operations commenced

Dorothy Thompson, Chief Executive of Drax, said:

"In the first half of 2013 we have delivered good operating performance across the business during a period of extensive activity at the Drax site.

"The first converted unit was commissioned at the beginning of April, generating electricity from sustainable biomass in place of coal. The unit, which is the largest converted unit in the world, has been operating safely and delivered expected performance, using the interim storage and delivery systems in place. We will start commissioning the new bespoke systems later this year.

"We are investing significant capital this year and next to transform our business, with earnings during this period impacted by the increasing costs of carbon. However, as we move beyond this investment phase and replace substantial quantities of coal with sustainable biomass, we are confident that we will deliver attractive returns for our shareholders.

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