The firm has pointed to having generated a record amount of power this year

Power giant Drax has reported a steep drop in operating profits, just days after job losses at its Yorkshire base were revealed.

New full year results for the FTSE250 firm show operating profit fell from £850m to £241m in 2025, as pre-tax profit slumped from £753m to £190m. Drax said the numbers reflected non-cash impairments of £378m, including £337m related to having paused setting up of pellet production at Longview in the US, lower expected margins, a “constrained” Canadian fibre market and future demand from the Selby power station.

There was also a £48m impairment attached to bioenergy with carbon capture (BECCS) and storage plans at the site which have not come to fruition but which Drax said it could develop in the long term. That comes after Drax paused its BECCS plans in March 2023.

Despite the fall, the firm said it had generated record levels of renewable power including about 6% of the UK’s power requirement and 11% of UK renewables overall. The Selby plant is the largest power station in the UK and the firm has talked of developing options for a 1.2GW-scale data centre there.

The results come as Drax is targeting cost savings of more than £150m per year from 2027, compared to its 2024 costs. Last month it announced a restructure which will bring 350 job cuts across its UK and US operations.

Drax Group CEO, Will Gardiner, said: “In 2025, we produced more renewable power than ever before, delivering energy security for the UK. Our colleagues and supply chain partners work around the clock to help keep the lights on for millions of the UK’s households and businesses, no matter the weather.

“The signing of the new low carbon dispatchable contract for difference is an inflection point for the group. It provides the foundation for us to keep supporting the UK with the flexible, renewable power it needs for security of supply this decade and beyond. The energy transition and growth in AI are creating opportunities for us to invest and grow our business further in line with the country’s energy needs.

“We are making good progress on this with our initial investments in battery energy storage systems (BESS), which we see as an attractive market. We will continue to explore options to invest in flexible and renewable energy, creating value for stakeholders and attractive returns for shareholders in line with our capital allocation policy.”

The £20bn NEPRO Innovation is a platform through which public sector organisations can procure goods, services, works and technology

More than 30 jobs are to be created with the launch of a new service to connect North East firms with public sector contracts.

The North East Procurement Organisation (NEPO) says it will open a new office to serve its £20bn NEPRO Innovation solution. The project, which is being delivered in partnership with London-based counterpart Constellia, promises a “more flexible, transparent and efficient route to market for public sector organisations and suppliers alike”.

Based out of offices in The Catalyst building on the Newcastle Helix site, NEPRO Innovation is designed by the NEPO team. It is intended to help navigate multiple frameworks for different categories, including everything from IT infrastructure to consultancy and construction projects.

It will be delivered through NEPO’s neutral vendor model and will see Constellia build on and adapt the approach it has used across 300 organisations, managing more than £400m spending. Under the arrangement, Constellia works with organisations to source the most suitable and appropriate supplier.

It manages a marketplace of more than 4,000 suppliers, many of which are SMEs. The model can be adapted to different needs and is said open doors for small businesses, giving procurement teams additional capacity when they need it.

Steven Sinclair, procurement and commercial director at NEPO, said: “NEPRO Innovation is the latest addition to the NEPRO portfolio, representing a step change in how the public sector delivers outcomes through a single, compliant route to market. Enabled by the Procurement Act 2023 and designed by procurement professionals, it allows delivery of complex projects that may require cross-category expertise, commercial flexibility and robust contract management.

“It is particularly suited to authorities seeking innovative, outcome-focused solutions while maintaining the compliance, assurance and governance standards expected within the public sector. NEPRO Innovation is accessible to the public sector through our free NEPO Associate Membership, offering a straightforward, low-risk route to high-quality procurement outcomes.”

Rob Levene, chair of Constellia, added: “We’re delighted to partner with NEPO on their second neutral vendor framework. NEPO’s trusted reputation and public sector expertise complement Constellia’s established neutral vendor approach. We’ll be delivering NEPRO Innovation using the same proven methodology that has worked successfully across our existing client base.

“The national availability of this framework means public sector organisations across the UK can benefit from this combined strength.”

John McCabe, chief executive, North East Chamber of Commerce, added: “Unlocking the North East economy means making sure businesses of all sizes can access opportunity and compete on a level playing field. Too often, small and medium-sized enterprises find public procurement complex and difficult to navigate.

“NEPO’s more open and flexible approach through NEPRO Innovation is a positive step towards widening participation, strengthening local supply chains and ensuring more public sector investment supports North East growth. It is encouraging to see organisations from our region leading innovation that can deliver lasting economic impact.”

New York Gov. Kathy Hochul is demanding the Trump administration refund an estimated $13.5 billion in tariff payments to New Yorkers after the Supreme Court struck down a key legal basis for President Donald Trump’s import tariffs.

Citing estimates from the Yale Budget Lab, Hochul said the average New York household has paid roughly $1,751 in additional costs since the tariffs were enacted last year — money she argues should now be returned.

“These senseless and illegal tariffs were just a tax on New York consumers, small businesses and farmers — and that’s why I’m demanding a full refund,” Hochul said Tuesday. “I’ll never stop fighting for New Yorkers, and that means staying focused on putting more money back in your pockets — not ripping it away.”

In a 6-3 decision issued Feb. 20, the Supreme Court ruled that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs was unlawful, finding that it “does not authorize the President to impose tariffs.”

WILL REFUNDS BE ISSUED AFTER SUPREME COURT RULING ON TRUMP TARIFFS?

New York Gov. Kathy Hochul called for tariff refunds after the Supreme Court struck down portions of former President Donald Trump’s trade policy. (Michael Nagle/Bloomberg via Getty Images / Getty Images)

The majority opinion, written by Chief Justice John Roberts, did not address whether refunds should be issued.

Hochul joins other Democratic governors, including California Gov. Gavin Newsom and Illinois Gov. J.B. Pritzker, in calling for tariff refunds following the ruling.

Several companies have also moved to recover costs. FedEx, the global shipping and logistics company, sued the administration seeking a full refund of duties assessed under Trump’s order. The company said it incurred additional expenses to expedite shipments through customs and is seeking repayment with interest, as well as compensation for financial harm.

The White House did not immediately respond to FOX Business’ request for comment.

FEDEX SUES TRUMP ADMINISTRATION FOR FULL TARIFF REFUNDS AFTER SUPREME COURT RULING ON IEEPA

President Donald Trump said he would explore alternative legal avenues to maintain tariffs following the Supreme Court’s ruling. (Nathan Howard/Getty Images / Getty Images)

Trump declined to say during a news conference last week whether the administration would provide refunds.

“I guess it has to get litigated for the next two years. So they write this terrible defective decision, totally defective. It’s almost like not written by smart people. And what do they do, they don’t even talk about that,” Trump said.

After the ruling, Trump announced a 10% global tariff and said he would look into alternative legal avenues to keep them in place. He later raised the tariff to 15%.

Hochul also pointed to a $30 million tariff relief proposal she introduced last month aimed at assisting New York farmers and small businesses impacted by higher costs.

She said over 80% of agrochemical imports and 70% of farm machinery imports are subject to tariffs of at least 10%, making it difficult for farmers to avoid higher prices due to limited alternative suppliers.

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The U.S. Supreme Court ruled 6-3 that the International Emergency Economic Powers Act does not authorize the president to impose broad tariffs. (MANDEL NGAN/AFP via Getty Images / Getty Images)

Farmers across the state are facing increased expenses for fertilizer and equipment, with some reporting cost increases of up to $20,000 annually, Hochul said. Milk exports have fallen 7%, she added.

Despite the Court’s ruling, Hochul said the “damage has already been done” for many farmers.

FOX Business’ Eric Revell and Bonny Chu contributed to this report.

1502 ET – Crude futures settle lower as the market looks to Thursday’s talks between the U.S. and Iran. Estimates of the risk premium baked into the price go anywhere from $4 to $10 a barrel, Phil Flynn of the Price Futures Group says in a note. “I would argue that it’s fairly subdued,” with President Trump’s record of trying to do the least damage to oil facilities and the market, he says, citing last year’s attacks on Iranian nuclear facilities and this year’s ouster of Venezuela’s leader. A blockade of the Strait of Hormuz could create “real supply headaches,” but “there’s still talks in Geneva and while it’s unlikely that the tensions will go away any sign of a peace deal could see an evaporation of $7 to $10 in oil very quickly.” WTI and Brent fall 1% to $65.63 and $70.77 a barrel, respectively.(anthony.harrup@wsj.com)

Oil Retreats With U.S.-Iran Tensions As Key Driver

1555 GMT – Oil prices retreat as traders assess risks to supply in the Middle East ahead of a third round of nuclear talks between the U.S. and Iran. In afternoon trading, Brent crude slips 0.4% to $70.85 a barrel, while WTI is down 0.5% to $65.50 a barrel after rising earlier in the session. “Most of the recent price increase is due to a widening risk premium,” analysts at Commerzbank say. “The price is thus well above the fair price of oil, which could be explained by fundamental factors alone.” On Friday, a barrel deliverable in one month cost $3.50 more than oil scheduled for delivery in seven months. Compared with 12-month delivery, the premium widened to more than $5. “The last time the time spreads were higher was in June 2025, when the 12-day war between Israel and Iran took place,” the analysts say. (giulia.petroni@wsj.com)