Drax Earnings Rise 18 Percent as Biomass Offsets Carbon Costs

Drax Group Plc, the utility converting the biggest U.K. coal station to burning wood pellets, said first-half earnings rose about 18 percent as its biomass investments shielded it from rising carbon prices.

Earnings before interest, tax, depreciation and amortization rose to 120 million pounds ($186.9 million) for the six months ending June 30 from 102 million pounds a year earlier, the Selby, North Yorkshire-based utility said Tuesday in a statement. That surpassed the 101 million-pound estimate of three analysts surveyed by Bloomberg, as an increase in its biomass generation offset higher U.K. carbon taxes.