Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Drax Group plc
  6. News
  7. Summary
    DRX   GB00B1VNSX38

DRAX GROUP PLC

(DRX)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

UK's Drax to double biomass production capacity, sales by 2030

12/01/2021 | 04:54am EST
Sunset over Drax power station in North Yorkshire

(Reuters) - British power generator Drax aims to double its sustainable biomass production capacity and sales of the product by 2030, to capitalise on increasing demand from Europe and Asia as countries look to move away from coal.

The company also said on Wednesday it expects 2021 adjusted core profit at the higher end of market expectations as it takes steps to control costs in the face of supply chain issues. Its shares rose 6.2% to 584 pence by 0850 GMT.

Drax, whose power stations provide around 6% of Britain's electricity, said it was targeting biomass pellet production of 8 million tonnes per annum (Mtpa) by 2030, compared with current production of 4 Mtpa.

Strategic capital investment is expected to be around 3 billion pounds between 2022 and 2030, Drax said, as the new target will require over 3 Mt of new biomass pellet production capacity and other carbon capture facilities.

Drax is developing technology to capture and store emissions generated from burning wood-based biomass pellets, which are categorized as renewable power, and hopes to have this up and running at a plant in Britain by 2027.

It has also been considering building a biomass plant in the United States.

JP Morgan analysts called the company's self-funded investment programme as "ambitious yet realistic".

Several energy companies have struggled with soaring wholesale energy prices in Europe's tight gas market, with more than 20 British energy companies collapsing since September.

"The Group's strong forward sold position means that it has not been a significant beneficiary of higher power prices from these activities in 2021 but has been able to increase forward hedged prices in 2022 and 2023," Drax said.

($1 = 0.7508 pounds)

(Reporting by Shanima A in Bengaluru; Editing by Devika Syamnath and Kim Coghill)

By Shanima A


ę Reuters 2021
All news about DRAX GROUP PLC
01/18DRAX : partners with local businesses to increase career opportunities for young people
PU
01/13DRAX : donates ú10,000 to Shelter
PU
01/10DRAX : Potential solution to unlock investment in climate-critical storage technologies
PU
2021GREENEST CHRISTMAS : fossil fuels fall to all-time low on Britain's power grid
PU
2021POWERING A GREENER 2022 : Happy New Year from Drax
PU
2021DRAX : Gainsborough apprentice wins top prizes at Drax awards
PU
2021DRAX : Yorkshire apprentices win top prizes at Drax awards
PU
2021DRAX : Daldowie engineering apprentice wins top prizes at Drax awards
PU
2021DRAX : Oban engineering apprentice wins top prizes at Drax awards
PU
2021DRAX : donates to Christmas toy drives in Mississippi and Alabama
PU
More news
Analyst Recommendations on DRAX GROUP PLC
More recommendations
Financials
Sales 2021 4 651 M 6 303 M 6 303 M
Net income 2021 109 M 148 M 148 M
Net Debt 2021 1 025 M 1 389 M 1 389 M
P/E ratio 2021 20,8x
Yield 2021 3,28%
Capitalization 2 287 M 3 101 M 3 100 M
EV / Sales 2021 0,71x
EV / Sales 2022 0,58x
Nbr of Employees 2 897
Free-Float 96,4%
Chart DRAX GROUP PLC
Duration : Period :
Drax Group plc Technical Analysis Chart | DRX | GB00B1VNSX38 | MarketScreener
Technical analysis trends DRAX GROUP PLC
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Last Close Price 573,00 GBX
Average target price 694,00 GBX
Spread / Average Target 21,1%
EPS Revisions
Managers and Directors
Dwight Daniel Willard Gardiner Chief Executive Officer & Executive Director
Andrew Keith Skelton Chief Financial Officer & Director
Philip Gotsall Cox Chairman
David Nussbaum Senior Independent Non-Executive Director
Nicola Hodson Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
DRAX GROUP PLC-5.29%3 101
NEXTERA ENERGY-11.53%162 073
ENEL S.P.A.-2.00%79 582
DUKE ENERGY CORPORATION-1.83%79 227
SOUTHERN COMPANY-1.12%71 865
IBERDROLA, S.A.-2.55%71 054