Drax Group (DRX)

Sector:

Electricity Generation and Distribution

Index:

FTSE 250

281.20p
   
  • Change Today:
    -0.60p
  • 52 Week High: 412.00
  • 52 Week Low: 251.00
  • Currency: UK Pounds
  • Shares Issued: 396.63m
  • Volume: 152,385
  • Market Cap: £1,115.34m
  • RiskGrade: 155

Drax lifts biomass self-supply target as it reiterates FY guidance

By Frank Prenesti

Date: Tuesday 19 Nov 2019

LONDON (ShareCast) - (Sharecast News) - Power generator Drax on Tuesday said it was targeting biomass self-supply capacity of 5m tonnes by 2027 as it reiterated full year trading guidance.
In a trading update, the company said it was evaluating options for a further 3.0m tonnes over the next seven years. Drax added that it was targeting returns "significantly in excess" of the group's cost of capital.

"These activities would enable Drax to develop an unsubsidised biomass generation business by 2027, with the option to service wood pellet demand in other markets - Europe, North America and Asia," the company said.

It reaffirmed guidance for adjusted earnings before interest, taxes, depreciation and amortisation of £90m - £110m in the 2019 financial year from the assets acquired from Iberdrola in December 2018.

Management also confirmed expectations for its full-year EBITDA, with the analyst consensus at the time standing at £409.0m.

Drax said it expected the capacity market to be re-instated shortly with a retrospective payment of £75m to be settled next January.

Chief executive Will Gardiner said the self-supply of biomass would "cut costs and reduce supply chain risks, ensuring our biomass power generation remains viable in the long term".

"When combined with carbon capture it will also enable negative emissions, helping the UK on its path to net zero by 2050."

Drax said the performance of assets acquired from Spain's Iberdrola in December 2018 had been strong, "particularly the pumped storage business which has performed well, driven by the system support market".

Drax bought a group of gas, hydro and pumped storage power plants for £702m as part of its plan to end coal-based production before a 2025 government deadline.

"The outlook for coal generation remains challenging and Drax continues to monitor the situation with regards to future operation, noting that all unabated UK coal generation must close by 2025," the company said.



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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 281.20p
Change Today -0.60p
% Change -0.21 %
52 Week High 412.00
52 Week Low 251.00
Volume 152,385
Shares Issued 396.63m
Market Cap £1,115.34m
RiskGrade 155

Drax Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
87.39% above the market average87.39% above the market average87.39% above the market average87.39% above the market average87.39% above the market average
55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average
Price Trend
29.9% below the market average29.9% below the market average29.9% below the market average29.9% below the market average29.9% below the market average
11.11% above the sector average11.11% above the sector average11.11% above the sector average11.11% above the sector average11.11% above the sector average
Income
63.84% above the market average63.84% above the market average63.84% above the market average63.84% above the market average63.84% 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
84.80% above the market average84.80% above the market average84.80% above the market average84.80% above the market average84.80% 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 22-Jan-2020

Time Volume / Share Price
12:02 750 @ 281.20p
12:02 2,031 @ 281.00p
11:56 508 @ 281.80p
11:56 853 @ 281.80p
11:56 750 @ 281.80p

Drax Group Key Personnel

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

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