(Bloomberg) -- Drax Group Plc posted first-half results that beat expectations by a wide margin as soaring power prices helped lift the UK utility’s income even though it produced less energy.

The generator, which was spared from a UK windfall tax on power generators, saw its biomass generation drop by almost 20% compared with the same period last year, it said in a statement Tuesday. Still, the company reported £225 million ($271 million) in earnings before interest, taxes, depreciation and amortization, which was well above analysts’ consensus.

“It is increasingly obvious with each set of results that Drax is benefiting from the high commodity price environment,” Citigroup Inc. analyst Jenny Ping wrote in a note, adding that she thought that would attract political scrutiny. “We believe the government (whoever in charge) is unlikely to stand by and do nothing to support consumers as energy bills continue to rise into winter.”

Drax rose in London after dropping as much as 3.5% earlier. The stock is up 27% this year, the third-best performer in Stoxx 600 Utilities index.

Chief Executive Officer Will Gardiner pointed to the company’s investment in bioenergy with carbon removal and hydropower generation that’s set to increase the company’s green footprint in the UK. Stronger sales in Drax’s wood pellet business to utilities, particularly in Asia, are helping other countries move away from coal-fired power, he said on a media call.

Drax to Dig Cave in Scottish Mountain for Hydropower Station

Earlier this month, Drax announced it will extend two of its coal units past a scheduled September close and will be compensated for those costs through a charge that will be spread across consumer bills. Gardiner declined to say how much the company is being paid to keep those units in reserve.

The utility is also adjusting its biomass generation to produce more in the winter, when demand will be higher.  

Drax also said it’s experienced a rise in utility costs of more than 20%, while fuel costs to deliver its biomass to its power station have risen over 10%.

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