Drax describes strong first quarter performance
The FTSE 250 company said it had taken steps to further extend its maturity profile with new balance sheet facilities.
That included £408m of term loans with three to five-year maturities and a €350m five-year bond extending to 2029.
Moreover, there had been the repayment of 2025 bonds and a notice of redemption issued for the $500m 2025 bond.
Additionally, Drax initiated a tender process for the repurchase of a €250m 2025 bond.
In terms of shareholder returns, a final dividend of 13.9p per share had been proposed, pending shareholder approval at the annual general meeting.
The final dividend, along with previous payments, brought the total dividend for 2023 to 23.1p per share, up from 21p per share in 2022.
"We continue to deliver a strong system support and generation performance, providing dispatchable, renewable power for millions of homes and businesses," said chief executive officer Will Gardiner.
"We are excited about the opportunity to deliver BECCS at Drax Power Station, the country's largest source of 24/7 renewable power by output.
"With a bridging mechanism and the right support from Government, our BECCS plans could help the UK meet its net zero targets and continue to support the country's long-term energy security, while creating thousands of new jobs across the region."
Gardiner said BECCS could also help deliver the global energy transition and, through the company's new global BECCS business, he said Drax was continuing to develop options for projects in North America.
"These could provide long-term, large-scale carbon removals and attractive opportunities for growth as part of a potential trillion-dollar global carbon removals market."
At 0852 BST, shares in Drax Group were up 2.04% at 524p.
Reporting by Josh White for Sharecast.com.
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