Drax Group plc (DRX) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you, and good morning, everyone. Thank you all for joining the call. I'm going to provide a short introduction and overview, and then I'll hand over to Andy, who will take you through the numbers and some of the operating points. And then I'll come back to talk about some of our investment opportunities and more about capital allocations, and we'll finish up the questions. Now on page three. You're all familiar with our purpose, which is to enable a zero-carbon, lower-cost energy future. I'll start with that as I always do, as it guides fundamentally everything that we do. Our strategy and business model are designed to deliver attractive returns for shareholders while realizing that purpose. We have a strong core cash generated business that has a track record of achieving those joint objectives. And looking to the future, we have opportunities to invest in that core business to enhance shareholder returns, as well as deliver positive outcomes for climate, nature, and people. And critically, our people are at the heart of DRACS, where I want everyone to feel a valued member on a winning team with a worthwhile mission. Returning to page four. We have had a strong year. Good safety performance is critical in its own right, and also underpins good operating and financial performance. So I was pleased at our total recordable injury rates, reduced in 2024 from 0.38 in 23 to 0.24. We produced 25% more power than we did in 2023, which combined with a strong improvement in pellet production has driven a 5% increase in adjusted EBITDA. We significantly strengthened our balance sheet, adding 700 million of new debt that matures in 2027 and beyond at attractive rates, which reflects the market's confidence in our long-term business. We use those proceeds to repay about $...