DRAX GROUP PLC (Symbol: DRX)
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2012
Drax to progress biomass transformation
|
Six months ended 30 June |
2012 |
2011 |
|
Key financial performance measures |
|
|
|
EBITDA (£ million) |
154 |
190 |
|
Underlying earnings per share (pence) |
28.9 |
31.9 |
|
Interim dividend (pence per share) |
14.4 |
16.0 |
|
|
|
|
|
Statutory accounting measures |
|
|
|
Profit before tax (£ million) |
141 |
169 |
|
Reported earnings per share (pence) |
33 |
91 |
|
|
|
|
Financial and Operational Highlights
- H1 2012 profits in line with expectations - after additional biomass costs
- Continued strength in operations
- Strong hedge - doubled 2013 forward sales at good margins
- Strong balance sheet - £233 million net cash at 30 June 2012
Biomass Highlights
- Biomass research and development - very encouraging engineering progress
- Government decisions support transformation to a predominantly biomass-fuelled generator
- Remain confident of the overall scale of strategic capital investment plan
Dorothy Thompson, Chief Executive of Drax, said:
"In the first half of 2012 we delivered good operating performance across the business and demonstrated our technical capability to convert Drax's generating units fully to biomass.
"As a result of our excellent technical progress and the Government's conclusions on support levels for sustainable biomass, we will now move forward with our strategy to transform Drax into a predominantly biomass-fuelled generator.
"We will do this by converting progressively three of our six generating units to biomass, in the full confidence that we have both proven the technical solutions to deliver reliable and flexible generation at attractive rates of efficiency and output, and are making good progress with our biomass sourcing.
"This transformation will secure a significant number of jobs, not just at Drax but also in the sustainable biomass supply chain."
