Drax Share Discussion Threads

[zcaprd7] 07/8/2015 10:12

Yes. Keeps going up

[audigger] 05/8/2015 08:18

Aside from speculation on the future of DRX, there's quite a nice recovery bounce going right now. Long may it continue!

[zcaprd7] 04/8/2015 16:38

Maybe our new wood pellet factories will be worth something in the end. We can provide consultancy to the yanks on bio mass conversion of the coal stations and then sell them their own trees...

[zcaprd7] 04/8/2015 02:24

Obama making the same mistake it seems...

[jamesiebabie] 04/8/2015 00:24

Boff - I do not entirely agree with your thoughts about the cost of electricity going up as the capacity market is in effect a reverse auction. I'm happy to see subsidies removed as it actually costs you and I more in tax; what has now happened is that the interconnectors will benefit more than anyone else; which is the opposite to what the government were trying to achieve via the removal of the CCL's.

Amber Rudd is making a dogs dinner over the current policy which appears to be made up as she goes along; I can say that the electricity producers have lost faith in the government and what is worse they are losing the confidence of the industry. What does this mean, less investment in new plant of any kind moving forwards.

I am aware of certain large electricity producers having one to one sessions with ministsrs and senior civil servants due to the recent announcements.

Drax and many other coal stations would have remained open if it was not for Europe and 'yes' Drax would be making a killing.

[boffster] 28/7/2015 17:15

Looking at the market as a whole, the continued hammering of carbon emitters combined with a withdrawal of subsidies for 'green' suppliers can only mean one thing - even higher prices for consumers.

[fangorn2] 28/7/2015 16:29

Wonder what that previous "muted bidder" is up to..Running his algos no doubt -

[boffster] 28/7/2015 16:19

Nick, Drax would make a lot more money than it currently does if it wasn't for government meddling, so its hardly fair to call it subsidised!

[nick rubens] 28/7/2015 15:19

Earnings still subsidised in these results? Hardly a Triumph. Looks very rough ahead to me, unless oil and gas prices rally.

20p rise for a 5p interim dividend? Main dividend was already cut dramatically.

[boffster] 28/7/2015 12:43

Aren't we all?

[zcaprd7] 28/7/2015 11:22

Yes. Good cash. Good cash flow. Doo g what they said they would. Still able to hedge their bets a bet. Hoping for a brexit I suppose!

[bookbroker] 28/7/2015 09:34

A very creditable result this morning, despite regulatory headwinds, Dorothy is running this co. very proficiently with the challenges that the co. faces, nice to see strong cash flow!

[fangorn2] 28/7/2015 08:38

Nice pop this morning of 10% on reasonable results.

Long way to recovery though and the Govt needs to get its act sorted UK Energy policy side.

[careful] 28/7/2015 08:38

bought on the bell here after reading results and statement.
too important for uk energy needs.
a solid company.

[bad robot] 28/7/2015 08:28

That was fast

[leadingladies] 23/7/2015 09:18

Boffster - a big thank you for that which makes a very interesting read. Daft question probably but akin to contracts associated with household PV installations were there no guarantees provided as to how long the subsidies will last for those prepared to invest at the time ? In other words sign up & I'll ensure you have for X years ?

[boffster] 22/7/2015 22:44

Article a couple of years old but worth a read

[zcaprd7] 21/7/2015 16:47

Had a nibble

[boffster] 21/7/2015 00:03

Jamesie, I feel your post is a bit misleading. National Grid have forecast surplus at 1.2% this winter. That means that without Drax we would be in serious do-do. Your point about demand having dropped is fair enough, and from the state of our generation fleet, its a good job it has. Whether it will continue to drop or not I would say is debateable, since we have efficiency improvements on one side and a growing population hungry for the latest gadgetry on the other. Probably a few years down the line, but what if all-electric cars become more mainstream?

[jamesiebabie] 20/7/2015 14:50

Nick - The CCGT's can and will pick up DRX's output, if required. Demand is also still dropping, so there are two sides to the equation.

[boffster] 16/7/2015 23:42

Even though the winds blowing against Drax at the moment (excuse the pun) there's something to be said for investing in a business that the country can't, for the time being at least, do without

[deanroberthunt] 16/7/2015 12:37

essential services shouldn't be listed on the stock market....end of

[nick rubens] 16/7/2015 12:01

Frustrating scenario for investors.

Dwindling and disappearing profits means losses for shareholders, no money for investment in the future and eventually everyone may find themselves out of a job.

Can DRX shed jobs or cut pay/overheads or sell land/property to get some financial health back?

Who can take up the generating capacity if DRX doesn't survive financially?

It seems we are all asking questions and the answers may not be there.

I'm still trying to find a reason to think DRX is just temporarily out of favour but the reality shows otherwise.

[boffster] 16/7/2015 10:58

So we've got the situation where the grid is really going to be creaking this winter, we've subscribed to silly EU rules (LCPD) which has meant older but functional power stations have been forced to shut down, and now we have the withdrawal of subsidies for 'green' stations, where is the return on investment for construction of replacement capacity? And how long until blackouts become a reality?

[boffster] 15/7/2015 10:45

He means that the Government should not expect support from institutional investors since it cannot be trusted