Drax Soars on Earnings Beat, While Biomass Decision in Limbo
- Earnings beat estimates despite a drop in power prices
- The company issues guidance of EBITDA of £968 million for 2024
Biomass fuel storage tanks at the Drax Group power station near Selby, UK.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
UK electricity generator Drax Group Plc soared in trading after earnings beat analyst expectations, although questions remain around the outcome of a government consultation on continued biomass subsidies.
The utility posted £1.2 billion in adjusted earnings before interest, taxes, depreciation and amortization, beating analyst estimates of £1.1 billion according to data compiled by Bloomberg, even as the high prices from Europe’s energy crisis eased.