Results due soon electricity prices only fell slightly recently boith DRX and BGY very volotile as brokers continue to change their minds i'm in and staying with good growth and 5%= yield protecting price

Results due 8/3 so expect some gains running up to that......


Drax Group PLC
01 February 2007


1 February 2007


DRAX GROUP PLC
('Drax')
(Symbol:DRX)

NOTICE OF RESULTS

Further to the reference made in the Trading Update released on 13 December
2006, Drax confirms that it will be announcing its preliminary results for the
year ended 31 December 2006 on Thursday 8 March 2007.

Drax also advises that the date set for its 2007 Annual General Meeting is
Thursday 26 April 2007.

hi g/g ditto/

Chat today that the private equity boys are running their slide rules over the company. Hence the recent upward shift.

nice gains last few days check the chart think its on the up again decent volumes last 2 days aswell...

Drax Group Plc - Holding(s) in Company
RNS Number:7194R
Drax Group PLC
22 February 2007

22 FEBRUARY 2007

DRAX GROUP PLC
('Drax' or the 'Company')
Symbol: DRX

NOTIFICATION OF MAJOR INTERESTS IN SHARES

1. Name of Issuer

Drax Group plc

2. Reason for notification

An acquisition or disposal of voting rights

3. Full name of person(s) subject to the notification obligation

Amvescap plc

4. Full name of the shareholder(s) (if different from 3 above)

-

5. Date of the Transaction

21 February 2007

6. Date on which issuer notified

22 February 2007

7. Threshold(s) that is /are crossed or reached

19%

8. Notified Details

(A) Voting Rights Attached to shares
Number of Voting Rights (InDirect) - 70,198,112
% of Voting Rights (InDirect) - 19.02%

(B) Financial Instruments
-

Total (A)+(B)
Total number of Voting Rights - 70,198,112
Total % of Voting Rights - 19.02%


9. Chain of controlled undertakings through which the voting rights and/or
the financial instruments are effectively held

ABN Amro Bank 151,947
Bank of Ireland 952,436
Bank Austria (Frankfurt) 58,274
Banque Paribas 126,057
BNP Paribas Jersey 110,016
Credit Agricole Indosuez (Luxembourg) 79,988
Chase Nominees 1,113,197
Vidacos Nominees 56,376,439
Deutsche Apothecar Und Aerzte 11,312
Dresdner Bank (Frankfurt) 16,104
Erst Bank (Vienna) 29,737
HSBC 1,149,377
Kommunak Kredit Deportbank AG (Austria) 12,796
Mellon Bank (Pittsburgh) 553,267
B.Metzler seel.Sohn & Co.KG (Frankfurt) 128,712
Morgan Stanley (London) 31,950
Santander Central Hispanio Investment 22,718
State Street London 8,217,047
Northern Trust Company (London) 1,015,838
Westdeutsche Genossensschafts Zentralbank 33,956
Westlandebank Dusseldorf 6,944


Proxy Voting

10. Name of Proxy holder

-

11. Number of voting rights proxy holder will cease to hold

-

12. Date on which proxy holder will cease to hold voting rights

-

13. Any additional information

All figures in boxes 7, 8 and 9 are based on shares in issue and voting rights
attached thereto of 368,921,151 ordinary shares of 11 1/29 pence each.

14. Name of contact and telephone number for queries

Phil White (01757 612167)

15. Name and signature of authorised company official responsible for making
this notification

Peter Rothwell, Company Secretary

- ENDS -



This information is provided by RNS
The company news service from the London Stock Exchange

END
HOLZLLFLDLBEBBQ




Consolidated regulatory news feed supplied by AFX

Drax FY EBITDA up 144 pct to 583 mln stg UPDATE
AFX


(Adds pretax and fuel costs)

LONDON (AFX) - Drax PLC, operator of the biggest coal-fired power plant in the UK, has unveiled full-year results showing EBITDA up 144 pct to 583 mln stg.

The surge in profits prompted a special dividend of 32.9 pence per share, on top of the final ordinary dividend of 9.1 pence per share. Total dividend for the year was therefore 134.7 pence per share.

Drax pledged to improve plant efficiency by 40 pct and confirmed its target of 10 pct output to be produced from biomass by 2009.

Including exceptional gains for this year, pretax profits were up even more to 634 mln stg, compared to 263.6 mln stg last year.

Fuel costs in respect of generation in the year to Dec 31, 2006 were 548 mln stg, compared to 460 mln stg in 2005. The difference was due to increased generation, the impact of higher prices for CO2 emissions allowances, and an increase in the cost of coal and other fuels.

newsdesk@afxnews.com

based on the dividend flow its worth more than 10 next years results will be good too as electricity prices not come down as much as GAS

so why the fall ????????????

nice to see it back above 800p it seems to be motoring again mainly on the back of oil prices i imagine

I was in this at the beginning after reading a hugely positive article in the Investors chronicle a while back but I sold because i think there will be a backlash against polluters like Drax and ive seen too many references to it recently (With regard to CO2 emissions etc).
Of course that wont stop its money making ability for the next few years but thats why im out - this is of course not everyones view.

shares magazine suggested it was one of their top takeover targets last week

might just happen now rumours of centric/gazprom looking at bidding expect 10 to be about right ?

absolute steal at this level with talk of take over and oil prices going through the roof ????

agreed gordon, projected EPS make this the best div paying share in ftse, as oil goes higher and higher this share will benefit and anyone wanting to takeover a power station don't have much to choose from so clearly a takeover favourite.

i bought more yesterday and the day b4

the divi's may be strong but you're forgetting about the global turmoil. Credit crunch and all that? There arent going to be as many people interested in buying Drax as before since they dont have as much money. Also still a huge polluter and the backlash is just around the corner

you think centrica and gazprom have no money and couldnt fund this from their own funds ??? i'm not taking of private equity ....they might be a polluter but they are doing a good job and minimizing the impact and producing around 12% of the UK electricity consumption shouldnt be taken lightly ?

well Drax certainly isnt cheap and Centrica is more of a target itself from Gazprom.

Electricty prices are certainly going higher though - but still I don't think coal is the future of fuel and wouldnt be suprised to see the shares hold their SP without making too much progress

oil/gas isnt going to be here forever either and people would say power now is more important than the environment later ??

Seems to be sticking around the 700p level at the moment

I would not say that. I mean how can you?
You disregard future generations rights to a normal life by polluting and critically damaging the atmosphere for power that can be achieved by many other means.
The ?? just makes your point all the more strange. Do you work at Drax?

Anyone still investing in this company?
Have just seen a couple of broker targets, one of which is dated today for 702p & one dated last week for 1045p (Gold Sachs).
The chart looks to be in an up trend & in todays market, utilities looks to be a relatively safe haven. No data on EPS or Div yield at present, but will post when available.

EDIT: PE 7.2, EPS 99.0, DIV Yeild 3.12.

The crack is starting to appear in Drax.

RNS Number : 3733S
Drax Group PLC
15 May 2009

('Drax Group' or 'Drax')

Symbol:DRX

Credit Rating Update


Standard & Poor's ('S&P') have today published their latest credit rating report with respect to Drax. In the report S&P have downgraded Drax Power's entity rating from BBB- to BB+ and Drax Group's debt rating from BBB to BBB-, the latter of which remains investment grade. Both ratings retain their negative outlook.

S&P recognise that Drax Power Station is a critical asset within the UK's electricity generation portfolio since it is the most efficient coal-fired power station in the UK, providing 7% of the country's electricity. Drax is a highly cash generative business, supported by healthy dark green spreads and strong contracted positions for 2010 and beyond. We expect it to remain so under all reasonable scenarios following the commencement of Phase 3 of the EU Emissions Trading Scheme in 2013. We are therefore disappointed with the S&P assessment that our business risk has increased to a level that merits a ratings downgrade.

However, in practical terms, the maintenance of an investment grade debt rating is the more important assessment. Our current trading arrangements remain in place and we will continue to progressively hedge our output in line with our existing trading strategy. Regarding business financing, we have low levels of debt which mature in December 2010 and we intend to refinance in advance of that date.

423p... DRX is dragging on its feet.

Just taken the plunge and invested. That double bottom on the charts I was looking for has just been reached.
I also feel that the drop of late is down to fear of the pre budget report but more so of the Copenhagen Climate Summit, which will no doubt knock coal fired heavy CO'2 polluting power stations.
But I feel that the Drax Power Station model especially with their forward looking 'we will make ourselves cleaner' concept will hopefully not be knocked as much as their competitors.
I believe that they could in fact come out of the summit, if not exactly smelling of roses at least not smelling of the other stuff.

Also as has often been mentioned, coal powered power stations are still vital to this counties power supply and will be for many years.
I just hope my little investment doesn't put the usual mockers on the sp.

Well it looks like the markets like the trading update, up 3.7% today.

My own feeling is that it will stay fairly static, over the next few weeks untill the results.
I still like the forward looking way that the company is heading and the healthy dividend.

Re Citywire (buy) and JP MORGAN (sell/avoid), I always find it strange that people are willing to pay several hundred pounds for full broker analysis.

Often in the past I have seen the same companies being tipped by different brokers/analysts for Buy/Sell/Hold. In todays volatile markets this is occurring on a much more regular basis.

Just goes to show that often us small private investors (as long as we do thorough research) are just as likely to be right.

Saying that if anyone wants to send me a few hundred quid, I will send by return a buy/sell or hold forecast on any share in the UK markets.

NOTE... The above is obviously a none serious comment as I don't want the FSA after me.
It does show though, that the experiment several years ago re a monkey sticking a pin in the financial pages, was about as accurate as the so called clever analysts. If I remember rightly the monkey beat several of the analysts in the picking of stocks, for a portfolio.
Now wheres me pin.

Read yesterday in The Telegraph that it is expected that 1 coal fired power station will be opened somewhere in the world 'every day' next year.
Due to the ever increasing demand for power and the ever increasing cost, it appears that 'King Coal' is a long way from dead.
When it comes to polluting the environment or having insufficient power there is no contest, especially when the newer mega powers like China are expected to take over from the USA as number 1 by 2030, (my own view is they won't, as the USA will I believe fight and win, this race to get back/retain the top).
So the new coal may well have to be cleaner, and as they say necessity is the mother of invention, surely we will see coal being used in ever increasing cleaner methods. UCG re coal and bio-fuels as supplements will have to become more efficient. Drax use of coal, with cleaner emissions coupled with their added use of bio-fuels place them in a good position in the battle of power supply.

The sp has been performing well today, at present showing a near 6% increase. Also volume is well up with recent buys at full price chasing the offer price.
OK I appreciate the sp often moves with the market in general, but the present increase must surely have news behind it.
Cant just be down to the shortage of gas reserves warning (8 days supply left in UK) can it. Just wondering if there is a supply contract looming.

The life of Brian (sorry mean't Drax).

Spoke to someone today who works at National Power re Drax and coal fired power stations. It appears that there are 2 such power stations earmarked for closure. He also stated that as Drax produces about 10% of the total amount of electricity this country requires, they will and I quote, "Be the last one to close, and as the production of electricity of sufficient quantity by other means is so far away, Drax will see him out".
He is about 45 ish, so hopefully Drax has at least another 30 years.
He could of course be wrong, but I am betting we are a long way from totally green energy, especially with an ever increasing demand.

Still confident in Drax but not the markets.

Sold today so probably won't post again for some time, although will look in regularly.
My reason for selling is not that I feel Drax are a poor investment, as I feel the company would without my reasons for selling be a good solid investment.
But I have sold as I consider the markets are about to head down in a big way, due to a combination of doubt in where this country is heading re the handing of the economy coupled with the turmoil in the EU (mainly the Pigs situation) and world economy.
Time will tell if I have made a prudent move or not.

"Drax initiated with buy rating at RBS, target 560p."

Broker note from RBS:
"Due to an weak international economy and a boost in US unconventional gas production, here is a surplus of LNG on world markets, which is depressing UK gas prices and looks set to continue for the next few years. This is bad news for Drax, as a coal-fired generator in a gas-priced power market. Our 2010 forecasts look intact but if current forward prices persist, our 2011 forecasts will be too high.
BUT, nevertheless, Drax looks cheap on conventional metrics.
At only 3.3x 2010 EV/EBITDA and 6x earnings, on our forecasts, Drax looks cheap on conventional measures. Our DCF-based price target is 560p, but this only tells part of the story: we find considerable hidden value in Drax.

We estimate Drax has around 275p/share of hidden value.
This hidden value arises from Drax.s coal stocks (46p/share); the carbon credits it will receive under the UK.s National Allocation Plan (74p/share); its historical tax losses (64p/share) and the value of its trading book, assembled when prices and spreads were significantly higher than today, (107p/share). Subtracting debt, we estimate this totals around 275p/share. This implies that the physical assets of Drax (the largest coal-fired power station in Western Europe, fully equipped with flue gas desulphurisation) are only being valued at 330m . around 10% of replacement cost, or 75% of the last three years. capex.

We believe Drax.s value will become apparent as UK generation market tightens.
The UK is scheduled to close 15% of its older coal and oil powers stations by 2015, and probably earlier in practice. The UK will still need Drax and other coal stations to run for most of the winter to meet demand. Therefore spreads will most likely have to rise in order to remunerate this important source of security of supply. We therefore rate Drax as a Buy on this longer-term view, although our 2011 and 2012 forecasts may get worse before the outlook for Drax gets better."

Interim Management Statement.

12 month high (470.90).

In which case shouldn't you be looking to lock in profit, or at least set a stop?

Harry - I've taken some profit here and FGP today.

Nice one. Also approaching the 2 year high at 480 ish. I can't imagine many private investors would be holding on much longer.

Running out of steam?

Harry - I closed the rest of mine earlier - so they will probably carry on up now!

It has carried on, though slowly. Coming up for divi (16p) 28th Sept '11.

Recent upgrades and SP targets......

08-11-11 07:38 Liberium-Upgrade 670P

02-11-11 Barclays Capital Upgrades 675P

31-10-11 Goldman Sachs 682p

DRX DRAX Top end of range of forecasts.

http://moneyam.uk-wire.com/cgi-bin/articles/201111150700250732S.html

Merrill Lynch upgrades Drax Group from neutral to buy, target price raised from 510p to 660p.

Societe Generale upgrades Drax Group from sell to hold, target price raised from 498p to 527p.

UPDATE 2-Drax sues Britain over U-turn on converting coal unit

* Shares in Drax fall 14 pct * Legal challenge will test new UK subsidy framework * Drax to continue with conversion regardless of outcome * Dong Energy biggest winner of subsidy contracts (Adds further Drax reaction, Dong Energy contracts, lobby group comment, background) By Karolin Schaps LONDON, April 23 (Reuters) - British electricity producer Drax DRX.L said it had started legal proceedings against the government over a decision not to support the conversion of one of its coal-burning units to biomass under a new subsidy scheme. The government's move is a blow to Drax's plans to modernise its polluting coal plant in Yorkshire, northern England, to burn more environment-friendly biomass after two units were short-listed in December to receive contracts under the new government scheme. "Nothing has changed, as far as our plans are concerned, between being deemed eligible in December and now. We have, therefore, commenced legal proceedings to challenge the decision," Drax Chief Executive Dorothy Thompson said in a statement on Wednesday. Shares in Drax were down 14 percent at 0926 GMT on Wednesday. The government is changing the way in which it supports renewable energy projects by replacing a mechanism for direct subsidy payments with a system whereby qualifying projects are guaranteed a minimum price at which they can sell electricity. Drax's legal challenge will set a precedent in testing the legal framework of the new subsidy regime, due to start in April 2015, and its outcome could sway other investors in UK biomass conversion projects. The government said the project for converting Drax's Unit 3 at the plant did not meet all its assessment criteria for the new contracts-for-difference (CfD) scheme. It recommended that Drax continue to use the current direct subsidy scheme, which analysts say is less lucrative. "We believe that this decision is disappointing. It has undoubtedly created some greater uncertainty," Angelos Anastasiou, a utilities analyst at Whitman Howard, said. Drax said that regardless of the outcome of the legal challenge, it would continue with the biomass conversion project. The government granted a CfD contract for the conversion of Drax's Unit 1, which will receive a guaranteed power price of 105 pounds ($180) per megawatt-hour from April 2015 when the new scheme is due to start, pending EU state aid clearance. The government also awarded investment contracts to seven other projects on Wednesday, including two biomass plants and five offshore wind farms. These included the Dudgeon offshore wind farm, proposed by Norway's Statoil STL.OL and Statkraft, SSE's Beatrice offshore wind farm and a third biomass conversion unit at Drax's coal-fired power plant. Denmark's Dong Energy was awarded contracts for its Walney Extension, Burbo Extension and Hornsea offshore wind projects, making it the biggest winner. "These contracts will allow us to deliver over 5 billion pounds of investment in the pipeline of projects we have in the UK," Brent Cheshire, Dong Energy's UK chairman, said in a statement. Britain's RenewableUK lobby group said it was important that all renewable energy projects receive support through the CfD scheme, not just those announced on Wednesday. "We need far more onshore and offshore wind projects over the next decade if we're not to find our energy security threatened," RenewableUK Chief Executive Maf Smith said.

Investec Buy 656.50 657.50 1,000.00 850.00 Reiterates

HSBC Overweight 656.50 657.50 875.00 830.00 Reiterates

Deutsche Bank Buy 656.50 657.50 900.00 900.00 Reiterates

Citigroup Neutral 656.50 657.50 800.00 800.00 Reiterates

Goldman Sachs Conviction Buy 656.50 657.50 1,226.00 1,067.00 Reiterates

Credit Suisse Outperform 682.00 660.00 695.00 750.00 Upgrades

2 Sep 2014 Drax Group PLC DRX Credit Suisse Outperform 0.00 656.50 750.00 750.00 Reiterates

SP Target 750p

2 Sep 2014 Drax Group PLC DRX RBC Capital Markets Outperform 654.50 656.50 750.00 750.00 Reiterates

Bottom been formed I wonder?

Woodford been adding again though some might say averaging (down). A lot to go for if the bottom has indeed been formed....

Yes cp1 ,i have this on my watchlist as well...

22nd Jan 2015

The European Union has given the green light for the UK government to provide financial aid to MGT Power’s biomass power station in the North East of England.
Sector peer Drax, which owns the largest coal-fired power station in the UK that is switching to burn wood pellets, was performing well on London's stock market on hopes for EU support for biomass generation.
The European Commission said its decision to back MGT's Teeside project was due to the fact that the plant will reduce carbon dioxide emissions and provide a constant energy output throughout the day, rather than intermittently as is the case with wind energy.
MGT and Drax are among the developers to be awarded a contract for difference mechanism that is meant to insure the price clean energy generators receive for power over 15 years. Government funding is designed to ensure certainty for investors until a more permanent solution is introduced.
Drax shares fell 13% in December after the government announced it was considering withdrawing state aid to generators that are converting to burn biomass, but rose 3.91% to 372.10p at 14:16 on Tuesday on the back of the decision adopted by the executive arm of the European Union.

Watching.

Looking good!

Did you get in Chris ??

Great recovery potential here guys.

Macquarie note today:
"Drax is not for the faint hearted and it has been a volatile performer. It has two main drivers to valuation: i) dark and bark spreads and ii) biomass conversion clarity. Both of these have been recently hit as a combination of low oil price/mild winter/DECC taking control of its budget have reduced outlook expectations.
There are two reasons why we believe current levels offer an attractive entry point. We have a new 465p price target (down from 550p/share) and an Outperform rating.
With a fixed carbon and biomass cost, spreads are heavily linked to gas prices. Whilst gas prices rebounded somewhat since January, leading to an improved dark and bark spread, the Drax share price has not. Drax is more efficient than 15GW of other coal power stations. If current 25-year-low spreads fall further, we think these will not cover cash costs and those without capacity payments (7GW) could close, tightening the market.
We estimate Drax has an EV of c.£1.6bn and a headline EV/EBITDA of 6.7x 2017e. We estimate they could sell their pelleting plants, worth in our view £300mn (double-digit IRRs on £225mn investment). Drax has hedged its pellets at £8/GJ, although the majority of these costs are in $US. At current rates we estimate this could be worth up to £200mn, or 15% of Drax. Removing this derivative would increase biomass costs overall – not unhelpful in EU negotiations, which, if allowed, we see coming in at £100/MWh real.
With hedged 1-year forward cashflow of c.£50mn, the EV of a ‘stripped’ plant would be £1,050mn. At current spreads we estimate a 3-ROC plant EBITDA of £218mn once capacity payments kick in, rising to £278mn with a CfD at £100/MWh – leading to a potential EV/EBITDA of between 3.8-4.8x.
Our valuation is 465p/share with a 50% probability of 3 ROCs (410p) and a £100/MWh CfD (517p). We see potential that dark spreads will rise through rising gas prices or less efficient coal fired power stations closing."

No jimmy, I own a few.

Ok good luck ,should see a comeback here .

Fingers crossed jimmy. :0)

Some loose talk on III of potential bid from Germans I think. Personally just think it's got very oversold. Not enough volume to support bid rumours.

What did Osborne say to drop this 20% i must have missed something .

Wow just seen this.

UK Government Scraps Climate Change Levy, Reiterates North Sea Support

Thanks skinny .

http://www.ft.com/cms/s/0/4f1e2e2e-258e-11e5-9c4e-a775d2b173ca.html#axzz3f853Lggf

Shares in Drax, the power utility switching from burning coal to wood pellets, tumbled on Wednesday after a climate change tax exemption was abruptly scrapped.
The stock closed 28 per cent lower after chancellor George Osborne said the government would remove the Climate Change Levy exemption for renewably sourced electricity from August 1.



Drax said the move, which is estimated to save £450m in the current financial year and £900m by 2020, could reduce its revenues by about £30m this year and £60m in 2016.
“We are surprised and disappointed at this retrospective change to a support regime which has been in place since 2001 specifically to encourage green energy and support renewable investment decisions,” said Dorothy Thompson, Drax chief executive.
Analysts said the decision was likely to have a noticeable impact on Drax’s revenues, even though the government suggested it was aimed at foreign generators supplying power through electricity interconnectors that link the UK with France and other nations.
Mr Osborne said: “Now we have a long-term framework for investment in renewable energy in place, we will remove the outdated Climate Change Levy exemption for renewable electricity that has seen taxpayer money benefiting electricity generation abroad.”
The Climate Change Levy was introduced in 2001 to encourage businesses to cut their greenhouse gas emissions and become more energy efficient.
Renewable power companies such as Drax receive Levy Exemption Certificates, worth about £4 a megawatt hour, providing an additional source of income on top of electricity generation revenues.
There had been industry rumours that the certificate scheme could end at some point in the future. “But I don’t think people expected it to be completely withdrawn with less than a month’s notice,” said Frank Gordon, senior policy analyst at the Renewable Energy Association.
“What business can make long-term investment decisions when one of its major revenue sources can be withdrawn at less than a month’s notice?”
Some financial analysts questioned the government’s move, noting more than 70 per cent of the income from the exemption currently went to UK generators, not those based abroad.
John Musk of RBC Capital Markets likened it to using “a sledgehammer to crack a nut”
Drax has already converted some boilers at its Yorkshire coal power station, one of the biggest in Europe, to allow them to burn wood pellets instead of fossil fuel and has plans for further conversion work.
Renewable energy industry trade groups said the decision was insupportable for clean power investors.
“Yet again the government is moving the goalposts, pushing some marginal projects from profit into loss,” said RenewableUK’s director of policy, Gordon Edge. “It’s another example of this government’s unfair, illogical and obsessive attacks on renewables.”
Environmental campaigners said the chancellor’s decision was at odds with the government’s claim it supported a strong climate change action.
“This is totally bizarre, making renewable electricity pay a carbon tax is completely counterproductive — like making apple juice pay an alcohol tax,” said Friends of the Earth senior economics campaigner Alasdair Cameron.
“The chancellor constantly goes on about making decarbonisation cheaper, and then makes it more expensive using a tax which was originally designed to encourage clean energy. It’s ridiculous.
“If there are problems with overseas deals or renewable companies which may not be low carbon — like some biomass projects — they can be dealt with separately, but this blanket approach will create only more uncertainty, costing clean energy jobs and investment.”
HM Revenue & Customs said that if the government had not acted, the exemption would have cost £3.9bn over the life of the current parliament and one-third of this would have gone to supporting renewable electricity generated overseas.
“This electricity would not contribute to the UK’s climate change or renewable energy targets,” it said in a statement. “There is evidence that some of the suppliers receiving the exemption are already in receipt of subsidies in their own country. This does not represent good value for money. In addition the value of the exemption going to support UK renewable generators is likely be negligible by the early 2020s.”

Very funny ,are you in skinny ?

No - unfortunately I'm in INFI - also took a spanking!

Well it's put back 7.5 % today of 30 % lost yesterday so here's hoping .

Buy 265.60 267.00 450.00 300.00 Reiterates

150p before 2016.

StockMarketWire.com
Drax says trading conditions have remained challenging, with further weakness in power prices since its half year results on 28 July.

But Drax says it continues to benefit from good operational performance and, since July, it has strengthened its 2015 and 2016 hedges for power sales at prices significantly above the current market. These factors underpin its expectations for the full year, which remain unchanged.

Barclays Capital today reaffirms its overweight investment rating on Drax Group PLC (LON:DRX) and cut its price target to 320p (from 380p).

Impressive chart.

StockMarketWire.com
Drax has entered into a conditional agreement to acquire Opus Energy for £340 million and four open cycle gas turbine (OCGT) development projects for electricity generation for an initial purchase price of £18.5m.

The final consideration will depend on clearing price in capacity market auctions.

Drax is also continuing to monitor opportunities to acquire further wood pellet plants.

Drax says the acquisition of Opus Energy will be subject to the approval of the Contracts for Difference by the European Commission but says the group remains confident of approval of this contract.

Drax says today's announcement marks a significant milestone in the execution of its strategy, helping it to change the way energy is generated, supplied and used for a better future. Drax says Opus Energy is a well established and proven retail business serving the SME market.

Drax also says it continues to expect full year EBITDA to be around the bottom of the range of current market forecasts.

Chief executive Dorothy Thompson said: "Drax is already playing a vital role in helping change the way energy is generated, supplied and used as the UK moves to a low carbon future.

"Today we are pleased to announce the proposed acquisition of Opus Energy, the UK's leading challenger retail supplier in the SME market, creating a strong and competitive presence complementing our existing Haven Power offer.

"We are pleased that five of our leading shareholders representing over 45% of the issued share capital have indicated that they will support the transaction, and we thank them for their support.

"We are also announcing the acquisition of four OCGT development projects, which will play an important role in helping government meet their ambition of new gas generation, reducing carbon emissions, forcing more coal off the system, providing additional system support to 'plug the gaps' created by intermittent renewables and boosting security of supply.

"With the right conditions, we can do even more, converting further units at Drax to use sustainable biomass in place of coal. This is the fastest and most reliable way to support the UK's decarbonisation targets, whilst minimising the cost to households and businesses.

"These initiatives mark an important step in delivering our strategy, contributing to stronger, more predictable, long-term, financial performance, through greater diversification of the businesses, delivering more opportunities right across the markets in which we operate."

Exane BNP Paribas today upgrades its investment rating on Drax Group PLC (LON:DRX) to outperform (from outperform).

RBC Capital Markets today reaffirms its outperform investment rating on Drax Group PLC (LON:DRX) and cut its price target to 370p (from 400p).

StockMarketWire.com
Power generation supplier Drax Group posted an annual loss, owing to two unplanned outages.

For the six months to June 30, statuary losses were £12m, compared with a £61m loss the same period a year ago.

Ebitda fell to £102m from £121m.

Drax said, however, that other areas performed well as its pellet production business drove down costs and output reached record levels. The company's B2B Energy Supply business continued to increase customer numbers.

First-half pellet production rose 80% to 0.7m tonnes from 0.4m tonnes and cost per tonne fell 12%.

The third biomass pellet plant, LaSalle Bioenergy, was commissioning ahead of plan and on track to reach full capacity in the first quarter of 2019, the company said.

A conversion of a fourth biomass generating unit was also on schedule and budget, and expected to come online in the late summer.

The interim dividend rose to 5.6p per share, from 4.9p per share. Dividends for the 2018 full-year were expected to come in at £56m.

The company said it completed £13m of £50m buyback programme as at 30 June.

Drax said it full-year expectations remained unchanged.

Drax said it was buying Scottish Power's portfolio of pumped storage, hydro and gas-fired generation for £702m from parent company Iberdrola. The portfolio is expected, based on recent power and commodity prices, to generate EBITDA in a range of £90m-£110m from gross profits of £155m to £175m.

Up over 5% at the moment.