Drax sees its full year profits tumble

POWER station operator Drax Group posted a 64 per cent fall in full-year profit, after its performance was affected by low power prices and a weaker economy.

By The Newsroom

Published 23rd Feb 2010, 08:35 BST

Updated 23rd Feb 2010, 09:12 BST

However, Drax said it had cut costs in 2009 and the outlook was positive.

Drax, whose coal-fired power station in Selby, North Yorkshire supplies about 7 per cent of the UK's electricity, reported a 2009 pre-tax profit of 158m on revenues 16 per cent down at 1.47bn.

The group's earnings before interest, tax, depreciation and amortisation (EBITDA), a key measure of its performance, fell a fifth to 355m, slightly ahead of market expectations.

Drax was expected to report an average EBITDA of 340.2m, down from 454m in 2008, according to a poll of 12 analysts.

"We start 2010 with more certainty over the earnings for the year following action taken mid-2009 to accelerate our contracted position," Drax said in a statement.

The company said it would pay a dividend of 9.6p per share for the year.

North Yorkshire