Drax Group (DRX)

Sector:

Electricity Generation and Distribution

Index:

FTSE 250

258.60p
   
  • Change Today:
    -1.40p
  • 52 Week High: 334.20
  • 52 Week Low: 126.40
  • Currency: UK Pounds
  • Shares Issued: 396.91m
  • Volume: 242,304
  • Market Cap: £1,026.42m
  • RiskGrade: 311

Scottish Power goes 100% wind power after £700m Drax deal

By Frank Prenesti

Date: Tuesday 16 Oct 2018

LONDON (ShareCast) - (Sharecast News) - Scottish Power on Tuesday sold the last of its fossil fuel operations to Drax for for £702m (€801m) as it became the first UK firm to generate 100% of its electricity from wind power.


Scottish's parent company Iberdrola said the deal represented a further step in its commitment to "a decarbonised economy, where the electricity sector should play a key role".

The 2.6 gigawatt portfolio is expected, based on recent power and commodity prices, to generate earnings before interest, tax, depreciation and amortisation (EBITDA) in a range of £90m-£110m from gross profits of £155m to £175m.

Drax said it had agreed a fully underwritten £725m secured loan to finance the deal. Included in the sale are four gas power stations in England, two hydro schemes and a pumped storage plant in Scotland.

"Assuming performance in line with current expectations, net debt to EBITDA is expected to fall to Drax's long-term target of around 2x by the end of 2019," the company said.

The acquisition is expected to complete by the end of the year.

Iberdrola chairman Ignacio Galán said the UK was a key market "where we will invest £5.5bn by 2022, primarily in increasing our renewable capacity, developing more and smarter grids and offering more personalised and efficient solutions to our customers".

"The world is changing. The energy companies should be part of the solution to climate change and not part of the problem," he said

Drax chief executive Will Gardiner said the deal "makes great financial and strategic sense".

"It's a critical time in the UK power sector. As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow," he said.

"We believe there is a compelling logic in our move to add further flexible sources of power to our offering, accelerating our strategic vision to deliver a lower-carbon, lower-cost energy future for the UK."

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Drax Group Market Data

Currency UK Pounds
Share Price 258.60p
Change Today -1.40p
% Change -0.54 %
52 Week High 334.20
52 Week Low 126.40
Volume 242,304
Shares Issued 396.91m
Market Cap £1,026.42m
RiskGrade 311

Drax Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
87.67% above the market average87.67% above the market average87.67% above the market average87.67% above the market average87.67% above the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average
Price Trend
2.40% above the market average2.40% above the market average2.40% above the market average2.40% above the market average2.40% above the market average
11.11% below the sector average11.11% below the sector average11.11% below the sector average11.11% below the sector average11.11% below the sector average
Income
90.88% above the market average90.88% above the market average90.88% above the market average90.88% above the market average90.88% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
81.21% above the market average81.21% above the market average81.21% above the market average81.21% above the market average81.21% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 8
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 10
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Drax Group Dividends

  Latest Previous
  Final Interim
Ex-Div 23-Apr-20 19-Sep-19
Paid 15-May-20 11-Oct-19
Amount 9.50p 6.40p

Trades for 13-Jul-2020

Time Volume / Share Price
12:29 443 @ 258.60p
12:28 611 @ 258.80p
12:28 217 @ 258.80p
12:28 406 @ 259.00p
12:28 94 @ 259.00p

Drax Group Key Personnel

Chair Philip Cox
CEO Will Gardiner
CFO Andy Skelton

Top of Page