Drax Group (DRX)

Sector:

Electricity Generation and Distribution

Index:

FTSE 250

295.00p
   
  • Change Today:
    -0.40p
  • 52 Week High: 413.80
  • 52 Week Low: 251.00
  • Currency: UK Pounds
  • Shares Issued: 396.63m
  • Volume: 308,292
  • Market Cap: £1,170.05m
  • RiskGrade: 193
  • Beta: 1.21

Drax surges on report EC set to OK ?1bn UK power back-up plan

By Michele Maatouk

Date: Friday 04 Oct 2019

LONDON (ShareCast) - (Sharecast News) - Drax shares powered ahead on Friday following a report that the European Commission is set to give the go-ahead for UK power companies to receive around £1bn to help with the costs of maintaining extra generation in the event of outages.
Reuters cited three sources as saying that a decision is expected this month, although a delay is possible

The payments were delayed after a Luxembourg-based European court ordered the EC to get more details on elements of the Capacity Market, which is is designed to ensure security of electricity supply by providing a payment for reliable sources of capacity, alongside their electricity revenues, to ensure they deliver energy when needed.

RBC Capital Markets analyst John Musk noted that Reuters is the first to comment on the UK Capacity Market, with no confirmation from the EU commission on its decision yet.

"Timing-wise we previously noted that we expected that the UKCM would be reinstated around the time of the next capacity market delivery year, which starts this month. As a result it was expected that there would be an announcement around this time, although this isn't the formal confirmation yet.

"While the near-term benefit to Drax is the receipt of past payments (around £75m) that have been suspended since 15 November 2018, the bigger positive is that Drax is now able to focus on future growth options.

"While the UKCM has been in standstill mode investors have steered clear of Drax as its future was so uncertain. Once the UKCM is reinstated, hopefully in a similar form to previously, Drax will once again be able to get on the front foot and explore growth options in coal to gas conversions, new combined cycle gas turbines and new open-cycle gas turbines.

"These are vital, alongside reducing biomass generation costs, for Drax to demonstrate it has a profitable operating life beyond the end of the current subsidy regime in 2027. If the UKCM is reinstated the next catalyst for Drax will be its capital markets day on 19th November when it should now be able to speak clearly about these growth options."

At 1600 BST, Drax shares were up 14% at 285p.

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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 295.00p
Change Today -0.40p
% Change -0.14 %
52 Week High 413.80
52 Week Low 251.00
Volume 308,292
Shares Issued 396.63m
Market Cap £1,170.05m
Beta 1.21
RiskGrade 193

Drax Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
82.26% above the market average82.26% above the market average82.26% above the market average82.26% above the market average82.26% above the market average
Sector averageSector averageSector averageSector averageSector average
Price Trend
6.26% below the market average6.26% below the market average6.26% below the market average6.26% below the market average6.26% below the market average
Sector averageSector averageSector averageSector averageSector average
Income
58.68% above the market average58.68% above the market average58.68% above the market average58.68% above the market average58.68% above the market average
60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average
Growth
84.61% above the market average84.61% above the market average84.61% above the market average84.61% above the market average84.61% 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 7
Buy 0
Neutral 3
Sell 0
Strong Sell 0
Total 10
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
  Interim Final
Ex-Div 19-Sep-19 18-Apr-19
Paid 11-Oct-19 10-May-19
Amount 6.40p 8.50p

Trades for 10-Dec-2019

Time Volume / Share Price
14:16 272 @ 295.00p
14:16 235 @ 295.00p
14:16 66 @ 295.00p
14:16 142 @ 295.00p
14:16 398 @ 294.80p

Drax Group Key Personnel

Chair Philip Cox
CEO Will Gardiner
CEO Andy Koss
CFO Andy Skelton

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