Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Which institution did this research if I may ask? Would you mind sharing the link to the actual text? I'm a bit surprised by their reasoning. It's a known issue capacity payments are put on hold and a significant part of Drax's revenue is derived from it, especially after Scottish Power's portfolio purchase. And that very purchase added a lot of debt. Interest costs are going to be significant. To cap it all, gas prices are dropping to the very low levels these days with an obvious impact on electricity prices.
Don't really understand where the analysts' expectations are coming from but anyway, this is what they do - they're usually wrong with either timing, direction or both. Judging by the share price behaviour this is not what the investors think. But again, in the longer term Drax may yet show its mettle. This is an investment for a patient guy. And it likes to throw nasty surprises. See historic lows reached at beginning of 2018 for no apparent reason.
You rightly mentioned ECJ intervention regarding capacity payments but, for whatever reason, ignored the heavy seller that has been depressing share price for the last 2 months. Schroders sold close to 20 mln shares and it's probably not over yet.
https://www.thetimes.co.uk/article/support-for-drax-fired-up-by-new-biomass-subsidy-6zmkkqqf7