Drax Group's 1H 2023 adjusted EBITDA (excl. Electricity Generator Levy (EGL) of £453 million ($581 million) represents an increase of 101% on the comparative period (H1 2022: £225 million ($288 million). Adjusted EBITDA (incl. EGL) of £417 million ($534 million) is an increase of 85% on H1 2022. EGL charges totalled £35 million ($45 million) in the period, all of which is reflected in the Generation results. There was no EGL charge in H1 2022. Strong cash generated from operations of £404 million ($518 million) is an increase compared to the comparative period (H1 2022: £185 million ($237 million).
Total operating profit of £392 million ($502 million) is an 89% increase on the comparative period (H1 2022: £207 million($265 million), with the increase in Total gross profit of £231 million ($296 million) offset by an increase in Total operating and administrative expenses of £89 million ($114 million) reflecting the factors described above. Total operating profit also includes an additional benefit of £85 million ($109 million) from net adjustments for certain remeasurements (H1 2022: £130 million ($167 million) benefit) that are not included in adjusted EBITDA. The main driver behind the certain remeasurements credit was a decrease in gas prices. No exceptional costs were recognised during H1 2023 (H1 2022: £27 million ($35 million).
Depreciation and amortisation decreased by 10% to £109 million ($140 million), with the main decrease being in the Pellet Production business, as the accelerated depreciation recognised in H1 2022 has not been repeated to the same level in H1 2023.
Will Gardiner, CEO of Drax Group, said: "In the first half of 2023, we delivered a strong system support and generation performance, providing dispatchable, renewable power for millions of UK homes and businesses. Drax Power Station remained the UK's single largest provider of renewable energy by output during the period.
"We are excited about the opportunity for BECCS in the UK and are in formal discussions with the UK Government to facilitate the transition to BECCS at Drax Power Station by 2030. Our plans could create thousands of new jobs in the Humber region, help the UK meet its carbon removals targets and support long-term energy security."
Drax is the second largest producer of sustainable biomass globally, and the UK’s largest source of renewable power by output.
