Drax Group (LSE:DRX)'s share price surged 6% in early trading following the announcement of a 66% jump in annual profit to £1.21 billion
The UK's largest renewable electricity generator also raised its dividend by 10% to 13.9 pence per share, underpinned by strong performance in renewable power generation.
Drax, known for its sustainable biomass plant of the same name in North Yorkshire, said it expects capital investments to decrease to £410-£450 million this year, from £519 million in 2023.
Investment bank Liberum said the results were in line with expectations, as it reiterated its 'buy' advice and 900p a share price target.
Liberum called them "a solid set of financial results, with little by way of surprises".
"2023 was not without its challenges in terms of Drax’s share price performance, largely due to policy uncertainty; however, we expect many underlying questions to be answered for the company this year."
At 9.28 am, the shares were changing hands for 445.5p, up 26.6p.