Drax Group raises interim dividend following 'great first half of the year'

Power generation business Drax Group said on Thursday that it had experienced "a great first half of the year", leading the group to up its interim dividend.

Drax posted a profit from continuing operations of £84.0m for the six months ended 30 June, up from a £57.0m loss a year earlier, while adjusted revenues grew from £2.1bn in the first half of 2020 to £2.17bn in H1 2021.

On a post-tax basis, Drax did register a loss from continuing operations of £6.0m, which included a £48.0m charge from revaluing deferred tax balances following confirmation of UK corporation tax rate increases from 2023.

The FTSE 250-listed firm also highlighted that it had only seen a £10.0m-15.0m impact from the Covid-19 pandemic during the first half, a marked reduction when measured against the £44.0m hit it took in the first half of 2020.

On the back of the solid half, Drax increased its interim dividend to 7.5p per share and recommended its full-year payout rise by 10%.

Chief executive Will Gardiner said: "We have had a great first half of the year, transforming Drax into the world's leading sustainable biomass generation and supply company as well as the UK's largest generator of renewable power by output."

As of 0910 BST, Drax shares were down 3.12% at 416.60p.