In the year ending December 31, pre-tax profits went up by sixty one percent to two hundred and fifty five million pounds, twelve percent higher at £1.65bn. Profits went up by a more modest ten percent when losses from derivative contracts are taken out. A final dividend of 17.9p will be paid on May 13, taking the total dividend to thirty two pence. .

Drax issued warnings that the mounting price of coal would trim its margins during 2011, but the shares still raised 7.2p to go up to four hundred and two pence. .

Dorothy Thompson, the chief executive of Drax stated that they began the year with a strong hedged position, contracted at higher average margins than for 2009 and their record operational performance and continued tight cost controls have further boosted profitability.

The firm also burns biomass and the power station produced the largest amount of renewable energy from any UK facility. However, the company pointed out that there was not very much regulatory support for biomass; otherwise it could have produced more. Encouragement for producing rat renewable energy from wind power is currently more generous. By burning biomass, the station generated about seven percent of the UK's renewable power in 2010, as stated by Ms Thompson.

Analysts have mixed opinion on the company because of worry of a margin squeeze, but some were optimistic.

Analysts continue to see value in Drax, because stations are closing in the UK, giving rise to a tighter market and improvements in margins, or via biomass, stated James Brand, a Deutsche Bank analyst.

However, an analyst at Evolution Securities, Lakis Athanasiou stated that upside won’t be there possibly but downside is possible. Coming out of winter into spring will put the UK gas price to test.