Drax Share Discussion Threads

[nick rubens] 08/7/2015 15:23

Looks like Drax are on their own now and that is worrying with out of date coal powered stations and now what looks like a totally uneconomical change to biomass.

I did make cautionary notes prior and suggested a rights issue would be likely at some point as this company doesn't look like it can make it's own way with continued profit falls and dividend cuts.

[specul82] 08/7/2015 15:20

£2 tommorow

[specul82] 08/7/2015 15:20

Get out now

[careful] 08/7/2015 15:07

any news.
there must be a reason for this collapse.

[fangorn2] 08/7/2015 15:06

Amen to that Boff.

[fangorn2] 08/7/2015 14:49

Wowie, dont panic Mr mainwaring....

Down 18%+

Pretty Woodford wont be happy - UK energy policy is in an utter mess.

[fangorn2] 08/7/2015 14:29

Worth a 11% fall?

[fangorn2] 08/7/2015 14:02

Didn't see anything in Budget related to energy companies but was only half listening.

[boffster] 08/7/2015 13:56

Guessing something to do with the budget.

[nick rubens] 08/7/2015 13:45

Doesn't look good here. Finance Director left recently.

Something is spooking it today and the market usually knows best.

Last update on trading was 'unchanged despite market weakness'?

Market weakness was the part that concerned me.

[careful] 03/7/2015 15:59

I would have thought that the price of coal is low as well.

[yobstol] 30/6/2015 19:36

"Natural gas glut puts squeeze on Drax" - if that were true then why is the Chairman buying 60,000 shares in the company ?

[cwa1] 30/6/2015 09:13

Morning. Just joined your merry band earlier on this morning on a medium term view(probably!). Hoping to have bought near a point of pessimism and equally hoping for better things for the future. Good luck all.

[scotches] 19/6/2015 09:39

"Natural gas glut puts squeeze on Drax" - put title into google and it takes you to yesterday's FT report.


"The owner of Britain’s largest power station slipped 3.1 per cent to 358.7p on a downgrade from RBC. A glut of natural gas in the UK is squeezing the future profitability of Drax’s coal-fired turbines, the broker argued.

It blamed imports from Asia, where gas has lost the premium to the UK it had before the oil price slump. Cheap gas means there is little hope of recovery in dark green spreads — the net revenue Drax makes on power after it pays for coal and carbon allowances — which have already been in decline for nine months, said RBC.

Drax shares have halved since the start of 2014, which has in part reflected regulatory hurdles facing its switch to biomass. Work on converting the third of Drax’s six turbines has been paused awaiting an EU investigation into subsidies.
RBC expected a six to nine month wait for the EU ruling, which it said was likely to scale back returns. A 1.5 per cent dividend yield is “far from attractive” given the uncertainties, it said."

[zcaprd7] 19/6/2015 02:46

Their own fault really. They tried to join the tree huggers... Shipping wood over from the states to burn in a coal fired power station? Really? Someone thought that was a good, practical idea? It will have a massive value when the lights go out, but where the share price will go, I've no idea. One assumes they can switch back to coal once we leave the eu?

[careful] 18/6/2015 16:09

It looks as though the tree huggers are killing this off.

[salpara111] 18/6/2015 12:54

If you want an energy utility then have a look at National Grid, none of the power price/subsidy risk and a 5% yield.
I don't own either but cannot imagine why anyone would want to own Drax given its earnings profile over the last few years.
DYOR

[nick rubens] 18/6/2015 08:42

Looks like freefall at moment. Needs a low PE and High Yield for support, unless it is victorious in it's legal challenge looking ahead.

With falling electricity prices, they are going to be squeezed big time.

Anyone been buying recently? It seems awfully quiet here.

[joshuam] 17/6/2015 08:01

Just follow this down for the next 6 months

[nick rubens] 16/6/2015 09:41

Valued at £2.3bn on flotation in 2005.

Now around £1.5bn and continued falling profits and dividends for the past several years.

Must be frustrating for long term holders. I know because I have other blue chips in the same boat.