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Good drop here to make some quick money imo, next few months will really show the reliance on drax’s power
YORKSHIRE: Bid to create thousands of jobs at Drax Power Station to be greenlit by Government. Bruce Heppenstall, Drax Plant Director, said this will be "the world's biggest carbon capture in power project" and it will be "transformative for the region's economy." Yorkshire Post.
698p when you posted effix, 736 close today, looks good to me, despite total incoherence on part of politicians on what to do with energy crisis, and a Business Secretary who ought to be considering his position. Not sure if reference to FT is supposed to impress, but for information Lex is written by journalists who do not identify themselves. They are anonymous because the column enables them to express opinion in a field in which they have no knowledge whatsoever. 30 years ago it might have merited consideration, today the FT is not much more than a pink Guardian! My personal opinion of course.
The labour policy approach, irrespective of whether you think it is a good idea, will be limited to oil and gas coompanies for the windfall tax.
Whoever wins the conservative member vote want go further than that, so I think power generators are safe.
Can see a run to year-highs.
Look out for the Friday’s issue of FT (Lex column). Further fuel for Drax’s sinking -). A real whipping boys these days -)
communist gordon brown is now wanting nationalisation of companies as reported in telegraph
Where is the level playing field? Anyone ever seen a wind turbine made in the UK? How about solar panels? I think they all come from that democratic country called CHINA, and produced by an oppressed minority!! Carbon footprint, what is he talking about? As business Minister he is a disgrace for undermining a sustainable UK company, and opening it up to the looney left. Next he will be proposing renationalisation of the whole industry. Back to the 70's!!
Kwantang, what a *ickhead.
He should look in at some of the other Govt departments and see whats happening with energy this winter. Security of supply when the Russian gas taps go off to Europe should be out priority.
SLT
I haven’t read one of your posts before.
I have plainly missed nothing.
Today 08:25
"Drax tumbles as Kwarteng questions sustainability of biomass fuel"
What an utter load of crud!
The fact is that government officials will do ANYTHING to get themselves noticed, especailly with the turmoil the Conservative party is currently in and the likely prospect of serious political seat-seeking to go on in future elections etc.
The import of Pellets by the likes of Drax will continue for a number of very good reasons. Firstly the UK does not have the capability to generate any fuel-burning resources except Coal/Oil.
Wood is "Replenishable" although I admit it would be better if the UK government "turned over" a largr proportion of brown-land to Sustainable Wood harvesting.
The big problem is that the UK seems incapable of producing 'home-grown' resources/consumables at prices comparable or better than Imported items - which is astonishing given the lack of need for major inter-continental transportation costs etc. But it is what it is.
The biggest issue is that there is NO WAY (other than proposed renewables) that the UK can maintain Enrgy Capabilities without at least importing resources for the near-term. So DRAX will continue to be profitable for the next 5-10 years.
At some point DRAX will need to "Diversify" faster. And the easiest way for DRAX to do that is through ACQUISITION.
So the likes of the smaller renewables such as TRIG, FSFL, UKW etc will become acqisition prospects in the next decade.
So, I say that government Leechers should keep their self-promoting gobs SHUT!
I also think people are missing the point.
A windfall tax on likes of DRAX isn't doom and gloom. Their Pr-tax profit for H1 2022 waas just on 4 Times that of H1 2021.
It won't actually break or push Drax into any form of loss whatsoever.
In fact (imho) , DRAX can still afford to pay any windfall tax and pay the interim 15+ dividend at end of month, yet still be in healthy profit next year.
Any request by the government to continue or increase electrical generation will only make Drax more future-proofed (imho).
So I'm viewing the knee-jerk drop today as great buying opportunity :-)
I'm hoping the energy firms will stand firm and tell SINak to mind his own greedy business.
I suspect the meeting is more than just about what the government can 'skim' off companies but also covers "Energy Security" for the next 6-12 months.
A possible outcome will be that DRAX is asked to keep Coal-powered Generators going longer to cover Ukraine dispute.
IMHO
Meeting today with the muppets at 10 Dooming street to come up with a solution. Can see a windfall tax on all providers coming.
Bet you wish you’d waited
oh ffs.....indian guy sunak has already screwed up some british oil/gas companies who have crashed from all time lows and people likely to lost jobs over his extra 25% tax leading to them paying 3 times the tax on any other business
then this corrupt git doesnt even look after the british elderly and disabled who use heating a lot more due to their frailty but gives money to the mega millions already dole bludgers.....masses dont work where i am
I suspect it's suggestions that the government may be considering windfall taxes on energy companies again.
BIG DROP at end of day which let me buy in at 7.36??? But no RNS or other news....
another sudden drop today?
again this has happened
these NGO's are part of the DEEP STATE; one has to beware who and where they are in our society and globally
Excellent turnaround by end of day. Two things may have contributed to initial fall: Shell and Centrica announced good profits and a dividend - both of which are strictly forbidden, and which seems to send the media into a frenzy demanding to know why; and a group of NGO's have persuaded the UK Govt Commissariat, aka, 'UK National Contact Point for Multinational Enterprises', to hold an enquiry into Drax issuing, in the opinion of the Green NGO's, misleading information about biomass and carbon footprint, etc. Something very very wrong with this country's attitude to business, and so called green culture.
If I had to guess, it would be the worry of a renewed call for a windfall tax given the recent results announcements by Shell & Centrica. As you say, a good set of results, and lots of opportunity for future growth in friendlier political climes.
What's with the big drop today? All good news from the half year results this week, expected a rise.
"- Biomass produced using sawmill and forest residuals, and low-grade roundwood, which often have few alternative markets and would otherwise be landfilled, burned or left to rot, releasing CO2 and other GHGs"
Do you believe everything that companies that you invest in say Mattw007?
"With 20,000 tonnes of wood pellets arriving at Drax every day, here are the numbers that tell the story of how the port of Immingham keeps more biomass coming in than any other in the world:"
Do you really think that 20,000 tonnes of Biomass pellets per day can be harvested from sawmill off cuts, forest residue and low grade wood that would otherwise be scrapped?
Even if it could be achieved, many sources would be needed and the cost of collecting cuttings and selective scraps from them would be prohibitive. The only way this amount of wood could be constantly sourced is forest stripping.
It has taken David Attenborough a long while to wake up to this low carbon con, that others raised years ago, but well done to him for having the courage to challenge the Green orthodoxy
https://theecologist.org/2017/apr/10/no-drax-theres-nothing-sustainable-about-big-biomass
Totally agree. If eco warriors really knew what they were about they would focus on getting rid of plastic and cutting trade with China. Sir David is a great man, but he has been hoodwinked if he believes biomass is the problem. As for the HC environment committee they need to start thinking about who is going to pay for decommissioning the first generation of wind farms. Add that to the funding for Hinckley C. Nice big cost for someone, and all for nothing. Wind farms are fake news, and nuclear remains a high risk technology. Cut consumption if serious about the environment, but don't use Drax as the scapegoat for incompetence and ignorance elsewhere.
If they can produce such results (net/total profit, from both: operational and exceptional items) every time - then sp is quite justified. If there's growth then sp can go up too.
But profits are quite inconsistent and volatile, IMO - valuation is too high.