Shares in Drax Group (LSE:DRX) climbed 5% in early trading on Thursday as the company posted resilient half-year results and confirmed its outlook for the full year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at £460 million for the six months to 30 June, compared with £515 million a year earlier.
The generator, which owns the giant Drax power plant in Yorkshire, continues to play a key role in the UK’s energy system, supplying 5% of the country’s power and 11% of its renewable generation.
The group delivered record pellet production, while maintaining a strong balance sheet and reducing net debt to £1.06 billion.
Drax will pay an interim dividend of 11.6p, up from 10.4p last year, and expects to increase the full-year payout by over 11%.
A £300 million share buyback programme is nearly complete, with an additional £450 million buyback planned.
The shares rose 34p to 712p.