Drax Group (LSE:DRX) rocketed 11% in early trading as the power station operator unveiled a £300 million share buyback and a 13% dividend hike, underlining its bullish outlook for the future.
Will Gardiner, Chief Executive, added that he sees the business playing a key role in the new government’s net-zero strategy, especially with its carbon capture scheme (BECCS).
"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.
We believe that Drax and our partners across the Humber and Scotland can accelerate growth, create thousands of new jobs, and channel billions in private investment into carbon capture and green energy projects.”
Drax saw profits jump by 37% to £463 million in the six months to the end of June 2024, adding that the results for the full year will be at the top end of market forecasts for underlying profits (adjusted EBITDA) of £881-996 million.
Shares rose 63.5p to 630p.