Drax Share Discussion Threads

[zcaprd7] 04/10/2017 13:07

Still not convinced by this. I like the underlying assets, but turning it into a green play is doomed I suspect, post eu.The Indians and Chinese are building 100s of new power stations between them (under the Paris Accord) so why do Drax have to faff around with woodchips?

[scotches] 15/9/2017 11:23

I wonder about the quality of Mir's research here.

"This compares with the present share price of 315p, a sharp contrast to the 800p plus only last year."

Must have missed that day it hit £8.



(If you adjust the http bit it will stop the advfn block on links)

[shoee62] 14/9/2017 15:24

Story today

hxxps://wallstreetwires.com/drax-takeover-save-woodfords-reputation/

[scotches] 28/7/2017 13:02

Could Drax benefit from the electric car revolution with the predicted increase in demand for power. (December 2016 article on Drax website so not independent comment)



"Drax, as operator of the UK’s largest biomass power station and with plans for new, rapid response open cycle gas turbines (OCGTs), is well placed to be at the forefront of providing reliable, affordable power in the event of a widespread rollout of electric vehicles. The OCGTs in particular, are designed for use in peak times which, in the future, could be when the nation’s electric vehicles are plugged in overnight – today this is when electricity demand is at its lowest."

[zcaprd7] 15/6/2017 13:06

What's the yield on that then?

[volsung] 03/6/2017 08:58

...along with Syria and Nicaragua lol

[walbrock82] 17/5/2017 23:01

If you remove derivative contracts of unearned gains/losses, it produces a clearer picture of Drax's operations. The fall in commodities had a big impact.

[walbrock82] 12/5/2017 08:31

The company has been a subpar performer for L-T holders with inconsistent dividend payments.

Recently, it recovered some lost ground. There are some things investors may find interesting in 2017: -

-Net Profit won’t be boosted by Forex gains and derivative contracts unless both the Pound and commodities prices took a dive.
-Net Profit won’t be boosted by Opus Energy because they made £14m.
-Free cash flow will turn negative this year.
-And, total debt will rise to £750m to £800m, with annual interest costs ranging from £40m to £50m.

For more, please visit:


What do the analysts think?

From 17 analysts, they think about the following: -

-Analysts are confident that dividend payment will increase to 9 pence per share in 2017 and rise to 14 pence, a year later.
-EPS is expected to rise to 9 pence this year and jump to 17 pence a year later.
-Revenue is forecast to grow by £3.5bn this year and rising to £3.62bn.

[fangorn2] 06/5/2017 20:23

What it say then?

[zcaprd7] 05/5/2017 13:54

Good letter in the telegraph about Drax today...

[cboney] 28/4/2017 11:12

If anyone was wondering , Barclays upgrade.

[zcaprd7] 26/4/2017 22:16

Today's announcement is interesting... So when we see headlines about no coal power being used, then station is in use, but burning wood!

[zcaprd7] 03/4/2017 15:42

They are really tying themselves into this wooden pellet nonsense aren't they?

[minerve] 27/2/2017 09:46

So, as suspected, the offers are made.

[minerve] 19/2/2017 12:08

Just thought some would be interested LEONIDAS. Take it or leave it.

[minerve] 17/2/2017 11:26

zcaprd7 16 Feb '17

"I think it might be the passing over of uncertainty to shareholders, via the dividend policy?"

Some would see that as prudence. They could be more assertive on dividend policy and get it wrong and then be in the position of oil majors paying dividends - some would argue - they cannot afford.

[grindertraderuk] 17/2/2017 11:20

Yes it seems like it. I'll probably sell my holding and move on..

[zcaprd7] 16/2/2017 17:21

I think it might be the passing over of uncertainty to shareholders, via the dividend policy?

[grindertraderuk] 16/2/2017 11:18

Yes even with guidance the market probably doesn't like the operating losses and decreasing margins

There was a one off Asset obsolescence charges of 109.2m in 2015 applied to the income statement that skews the headline profit before tax increase of 242% (59m to 197m). Excluding this adjustment and the rise is around 17% which is still respectable.

Diluted EPS is 47p so at time of writing I PE around 7.5p
The balance sheet is strong though.

I am not an expert in this market though, but I have invested as part of a diversified portfolio.

I currently HOLD.

[zcaprd7] 16/2/2017 10:28

Blimey, they met guidance, Mr market still not happy though?