Power producer Drax starts strategic review

LONDON, July 28 (Reuters) - British power producer Drax reported an 18 percent rise in first-half core earnings thanks to higher production at its power plant and said it had started a strategic review to re-assess its long-term business model.

Drax made 120 million pounds ($187 million) in first-half core earnings, up from 102 million a year earlier, resulting in a 53 million pound profit before tax.

It announced a half-year dividend payment of 5.1 pence per share, up from 4.7 pence per share paid for the same period last year.

Drax shares fell 30 percent on July 8 when the British government removed a climate tax exemption from which Drax had benefited since 2001. ($1 = 0.6421 pounds) (Reporting by Karolin Schaps; editing by David Clarke)