Drax Group Plc Delivers Robust Financials
Draw Group today announced strong yearly financials for the 2017 financial year. EBITDA has increase by £89 Million and now currently stands at £229. This represents a 64% increase, and the CEO anticipates that the company will hit their target of more the £425 EBITA before 2025. What is significant for the group is that all areas of the business are contributing to EBITA for the first time. Key highlights include:
Pellet Production – EBITDA rising from £6 Million to £12 Million, this is a result of a 35% growth in production. Power Generation now up £64 Million along with B2B energy supply up £33 Million. There was an additional share buy back programme of £50 Million which is consistent with their capital allocation policy. On the negative side the group suffers a statutory loss before tax principally driven by unrealised losses relating to foreign currency hedging of £156 Million.
CEO Will Gardiner has quoted,
“We continued to transform the business in 2017, delivering a strong EBITDA performance, in line with expectations. This was delivered by all parts of the business making positive contributions for the first time.
“We also made good progress delivering our strategy, which is clear and unchanged. We are increasing biomass self-supply, developing projects to diversify our generation mix and growing our B2B energy supply business.
“The UK is undergoing an energy revolution, starting with a significant reduction in carbon emissions, and to support that we are helping to change the way energy is generated, supplied and used.”
Drax group has recently re-insured their power station. This insurance has been brokered by European corporate insurance brokers FMP Insurance Services. FMP Insurance Services have a specialist division for power reinsurance. This part of the business operates out of their Birmingham office. James Gosling power division director states,
“We are delighted to win the contract of such an important contributor to the UK power supply. Whilst our mainstay of our business is in banking and construction we see power an ever more important sector of the business.”
Drax is the largest power station in the UK, and is based in North Yorkshire. It’s generating capacity is 3,960 megawatts is the highest of any power station in the UK, delivering about 7% of the United Kingdoms electricity supply.