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.

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 ?