Drax Sees 39% First-Half Profit Drop as UK Power Prices Fall
Drax Group First-Half Financial Results and Market Context
Profit Decline Driven by Lower Power Prices
July 30 (Reuters) - British power generator Drax Group reported a 39% drop in first-half adjusted core profit on Thursday, weighed down by lower power prices at its biomass generation unit.
Market Trends Impacting Power Prices
Wholesale power prices in Britain have fallen over the past couple of years, after rising dramatically following Russia's invasion of Ukraine.
Financial Performance Overview
Drax reported adjusted core profit of £279 million ($372.3 million) for the six months ended June 30, compared with £460 million a year earlier, and said earnings for the year would be in line with analysts' expectations.
Acquisition of Bluefield Solar Income Fund
Deal Clearance and Completion Timeline
Separately, Drax said its recommended all-cash acquisition of Bluefield Solar Income Fund had cleared the final UK national security hurdle, with the deal now expected to complete on July 31.
Exchange Rate Information
($1 = 0.7493 pounds)
Reporting Credits
(Reporting by Anushka Chourasia in Bengaluru; Editing by Harikrishan Nair and Subhranshu Sahu)
