Drax Group PLC on Friday reported strong double-digit growth in the first half as the company prepares to become a key player in the UK’s future energy strategy.

The Selby, England-based power generation and carbon capture technology company said in the first half that ended June 30, pretax profit rose 37% to £463.2 million from £338.1 million the previous year.

Revenue increased 19% to £3.16 billion from a restated £3.89 billion, leading Drax to raise its interim dividend by 13% to 10.4 pence per share from 9.2p.

Adjusted earnings before, interest, taxes, depreciation, and amortisation grew 24% to £515 million from £417 million, while net debt was reduced by 19% to £1.04 billion from £1.27 billion.

Chief Executive Officer Will Gardiner commented: ‘Drax has delivered a strong operational performance, playing an important role supporting the UK energy system...We look forward to working with the new UK Government to help grow the economy and take steps urgently to deliver a net zero electricity system by 2030.’

So far this year, capital investment stood at £147 million with the company aiming to invest between £360 million to £400 million by year’s end, down from £519 last year.

As at July 17, analyst consensus for full-year adjusted Ebitda was £961 million, with a range of £881 million to £996 million.

The company expects it will achieve the top end of its estimated outlook, down from £1.01 billion in 2023, and management said the full-year dividend will increase 13% to 26.0p from 23.1p last year.

Drax shares were up 14% to 647.00p each in London on Friday afternoon.

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