DRAX GROUP PLC has released its full-year results for the twelve months ended 31 December 2023, showcasing a robust financial performance and a strong balance sheet. The company's adjusted EBITDA (excluding EGL) saw a significant increase to £1,214 million from £731 million in 2022. The CEO, Will Gardiner, highlighted the company's essential role in providing renewable power for millions of homes and businesses, particularly during periods of peak demand.
The financial highlights include a 10% increase in the proposed final dividend per share, a new £258 million term-loan facility, and the conclusion of a £150 million share buyback program. DRAX GROUP PLC is targeting post-2027 recurring adjusted EBITDA of over £250 million, driven by its flexible generation and energy solutions portfolio, including pumped storage, hydro, Open Cycle Gas Turbines (OCGTs), and biomass generation.
The company is also focusing on long-term growth opportunities linked to the energy transition and security of supply, with plans for approximately £4 billion of growth investment by 2030. This includes the development of carbon removals and the expansion of pellet production capacity. DRAX GROUP PLC is targeting the first unit of its UK BECCS project by 2030, with ongoing formal discussions with the UK Government to ensure its role in UK energy security.
The company's capital allocation policy remains unchanged, and it continues to assess capital requirements in line with the current policy. In terms of sustainability, DRAX GROUP PLC is compliant with TCFD reporting requirements and has had its Science Based Targets initiative (SBTi) targets approved. The National Audit Office (NAO) has published a review of the UK Government's biomass strategy, highlighting the government's commitment to biomass and its long-term role in delivering UK targets.
Overall, DRAX GROUP PLC's operational and financial review for 2023 demonstrates a strong performance, with a focus on sustainable growth, expansion, and its crucial role in the UK's energy landscape.