Drax Share Discussion Threads

[castleford tiger] 23/12/2021 18:40

Finally made it

[km18] 16/12/2021 14:06

Drax Group PLC is involved in the generation and supply of low carbon and renewable electricity to provide system support services to the electricity grid. Subsequently, large industrial and commercial sector customers are the firm’s main stakeholders. Given the highly innovative clean energy solutions offered to the public, the firm has grown in recognition, enabling them to increase levels of production and strengthen its pipeline, resulting in a robust operating profit of £84m, higher than the (£57m) loss incurred in 2020. As a result, the biomass producer is making strong progress while enabling investors to optimise their returns on their investments on the firm, since the firm underpins attractive full year dividend payments made to its shareholders. From a valuation perspective, the firm’s P/E ratio is 10.1, lower than the renewable energy P/E ratio of 42.69, signifying that Drax Group is undervalued with respect to its peers and cheap for investors to buy.



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[bothdavis] 03/11/2021 09:49

One would assume that compared to what it used to burn...this is better?!

[geckotheglorious] 03/11/2021 08:41

Bookbroker.

Yes I struggle to see how burning "wood pellets" from chopped down trees, then shipping it across the Atlantic from USA to UK ina polluting cargo ship is , in any way, Eco friendly....

But that's the topsy turvy world we live in.

Good job all those wind turbines are turning eh! :)

[castleford tiger] 02/11/2021 18:40

ready to break out

[castleford tiger] 19/10/2021 19:29

We are really getting GOING now.
Still big upside I feel with retail price now. 24 p per kwh

[professor john koestler] 19/10/2021 12:22

Drax dropped from index of green energy firms amid biomass doubts - Guardian

[professor john koestler] 19/10/2021 11:03

Drax dropped from index of green energy firms amid biomass doubts - Guardian

[scotches] 11/10/2021 14:19

Drax much needed now at time of energy shortage but ongoing calls from lobby groups to reclassify biomass in relation to renewable status.

[r9505571] 01/10/2021 21:25

Hi all. Can anyone tell me why Simply Wall Street have valued this at £45?

[scotches] 27/9/2021 08:59

The FTSE 250 owner of the Drax power plant in North Yorkshire has climbed to its highest share value in almost seven years, as wholesale prices have spiralled to all-time highs, claiming seven small energy suppliers in the past seven weeks.

The company is not exposed to the cost of gas, which has quadrupled on the UK markets in the last year, but it will benefit from the impact of rising UK wholesale electricity prices, which were already some of the highest in Europe.

Drax’s share price went above 500p a share for the first time since late 2013 this week, up from 412p two weeks ago, to value the company at £1.97bn. HSBC has set a target share price of 620p a share for the company, implying an increase in value of more than £500m.

“This ‘crunch’ has demonstrated the need for the UK to develop alternative, renewable, flexible sources of power generation, apart from intermittent wind and solar, to ensure security of supply,” said Verity Mitchell, an analyst at HSBC.

[tedmak1] 21/9/2021 15:56

Boonkoh
I have to correct a point you made.
On the 1 CFD unit, the price the company gets for the power is fixed.
On the other three units, they receive the power price plus one ROC for each MWh of production, up to a cap.
So they will be burning as much biomass as they can on those plants to gain as much of the current prices as possible as they are well in the money.
They will also be receiving healthy prices on the pumped storage output.

[boonkoh] 19/9/2021 21:01

Whatever price biomass energy rises to, Drax production price will still be higher. Any subsidy from govt is up to a certain fixed level so the more power prices rise, the lower the subsidy, and the net revenue to Drax is static.I also saw news that Drax is bringing the coal plant back to life again for emergency supplies this winter? Think it might be just hot air as surely if its happening or an agreement reached we would be getting an RNS. Not least because Drax will no longer be ESG compatible.

[castleford tiger] 16/9/2021 23:25

It’s certInly massively undervalued

[leadingladies] 16/9/2021 17:29

Not sure but imagine price increase is related to the fire affecting cable importing supplies from France. Assume Drax will be called on to help meet the supply shortage and be reimbursed at very hefty rates for generated electricity. News infers supplies could be affected until March 22.

[geckotheglorious] 16/9/2021 12:44

Someone's been at the crack pipe at Barclays!


Drax topped the FTSE 250 index, surging 7.7% to 472.40 pence as Barclays predicted a promising future for the power station operator.

Barclays hiked its price target for Drax by 75% to 960p from 550p. It retained its Overweight rating. The investment bank drew particular attention to Drax's bioenergy carbon capture and storage, or BECCS, negative emissions offering.

"BECCS to us has the feel of offshore wind in 2005 – marginal current economics and a large niche area but with significant potential. We see Drax becoming a global leader in developing and operating these complex BECCS projects both in the UK and globally, and we estimate a long-term upside scenario valuation of 3,800p," Barclays said.

The investment bank noted 3,800p is about eight-times higher than Drax's current share price.

[scotches] 29/7/2021 12:59

Minimal independent commentary so far on first half results beyond the CEO depiction of "great". Shares marked down within the recent range. Increase in interim divi to 7.5p.



www.sharecast.com/news/news-and-announcements/drax-group-raises-interim-dividend-following-great-first-half-of-the-year--8050356.html

[scotches] 04/6/2021 08:45

JPMORGAN RAISES DRAX GROUP PRICE TARGET TO 500 (360) PENCE - 'OVERWEIGHT'