idontwanttolose
06 Dec 2016
Proposed acquisition of Opus Energy for £340 million Hopeless Opus Energy!! [link] cannot believe anyone would by Opus Energy!!!6 December 2016THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION DRAX GROUP PLC(Symbol: DRX) Proposed Acquisition of Opus Energy Group LimitedAcquisition of Open Cycle Gas Turbine Development ProjectsStrategy and Trading Update Today Drax publishes details of the proposed acquisition of Opus Energy Group Limited ("Opus Energy"
and the acquisition of four Open Cycle Gas Turbine ("OCGT" development projects(1) along with a strategy and current trading update for the period from 1 July 2016 to date. Strategy UpdateAs outlined in its half year results, Drax has been exploring options to further improve earnings quality and deliver targeted long-term growth, evaluating opportunities to diversify across the markets in which it operates - pellet supply, generation and retail. As part of this ongoing process, Drax is today announcing that it has entered into a conditional agreement to acquire Opus Energy and an agreement to acquire four OCGT development projects for electricity generation. Drax is also continuing to monitor opportunities to acquire further wood pellet plants. The acquisition of Opus Energy will be subject to the approval of the CfD(2) by the European Commission and Drax remains confident of approval of this contract. Today's announcement marks a significant milestone in the execution of Drax's strategy, helping it to change the way energy is generated, supplied and used for a better future. Opus Energy · Proposed acquisition of Opus Energy for £340 million(3)· A well established and proven retail business serving the SME market· Compelling range of strategic and financial benefits includingo Acceleration of retail strategyo Advances transition to diversified, higher quality long-term earningso Attractive financial returns§ Return on invested capital greater than cost of capital§ Significantly accretive to earnings, with strong cash flow generation in 2017· Fully debt funded through new facility, with robust sub-investment grade business model· Class 1 transaction subject to shareholder approval and approval of CfD by the European Commission(2)OCGT developments · A response to changing energy requirements· Acquisition of four OCGT projects with a total capacity of c. 1,200MW for initial purchase price of £18.5 million, with final consideration dependent on clearing price in capacity market auctions (4)· Two sites in 2016 capacity auction· Diversification of Drax generation mix Trading · Drax continues to expect full year EBITDA(5) to be around the bottom of the range of current market forecasts (6) Commenting on today's announcement, Dorothy Thompson, Chief Executive Officer of Drax Group, 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 s
mexicoman
10 Nov 2016
Re: Hinkley C Good for Hargreaves services
Punilux
10 Nov 2016
790 Has anyone bought Drax at 790 as presently stated by ii ?
MNKGV
09 Nov 2016
Re: Hinkley C Today, everything is nearly flat out Coal ( in the red ),Nuclear (in the red) Gas ( touching red), we are running on lucky.
MNKGV
08 Nov 2016
Re: Hinkley C Nice to see Drax having to ' throw another log on the fire' towards a high demand (in the red bit ) tonight of 47GW. And it is not yet winter.
MNKGV
27 Oct 2016
Re: Hinkley C 2+GW to France via the interconnector for the last few days , from our spare COAL capacity.
MNKGV
20 Oct 2016
Re: Hinkley C More good news this morning for us Drax holders.France is taking five 'nukes' off-line for reactor ' inspections' and if they find faults ?
axel27
22 Sep 2016
Re: Hinkley C Sept was interesting month in electricity with highest pricing seen for 8 years. Combination of planned and unplanned plant outages. French interconnector half capacity and be interesting to read whose plant was being maintained. EDF I wonder. Anyways they got their order. They also building 49MW battery.Demand was higher, but no where near the heady heights in winter 9/10, 10/11 at 58GW.Lets hope for a warm winter, BG get Rough storage sorted. Electric is short. Trust DRAX trading team has optionality over winter as money to be made.Axel, off to buy more reciprocating combustion generators.(chip fat and white spirit)
MNKGV
15 Sep 2016
Hinkley C The absurd decision to go ahead with Hinkley C is good news for us Drax holders. Just a few days ago, with 38GW on the board ,over 20% of our energy was being supplied by COAL. At least another ten years of 'nail-biting' in National Grid's control room is ensured.
nk1999
24 Aug 2016
Citi view "Citigroup upgraded Drax to 'neutral' from 'sell' as an 8% drop in the share price since the beginning of the month has left the shares trading near the bank's unchanged 305p price target.Citi noted that despite the recent rally in oil and gas prices, Drax shares have underperformed and it is now more fairly valued."We believe the current valuation now fairly reflects the risk/reward profile of the shares and therefore we upgrade," it said.Citi said its downgrade of the stock had been a call on inconsistency between commodity prices and Drax valuation, which in its view have played out."News flow relating to the European Commission approval of Drax's third unit biomass conversion into contract-for-difference could still surprise on the downside. However, given Drax's recent share price movement despite higher oil and gas prices, we now believe more risk is being priced in for a lower CfD."The bank said the maximum level the EC has indicated it will allow Drax to earn on the CfD is £100 per megawatt-hour, and it assumes £99/MWh within its forecast and valuation.On the upside, Citi noted the UK government is currently reviewing the case for new nuclear in the UK."If a decision to scrap plans for new nuclear were to come, we believe the UK government could also announce plans to introduce additional incentives to build new combined cycle gas turbines or they could postpone the closure of coal to beyond 2025. Such move could support gas prices (therefore UK power prices), which could benefit Drax's earnings and valuation in the longer term."From ADVFN.
II Editor
17 Aug 2016
NEW ARTICLE: Has Drax got the power to break out? "DraxThe amazing thing about LSE
RXrax is the adherence to a ruling downtrend ('blue' on the chart below) since 2014. For a ten-day period in July, the high of most days bumped against the ruling downtrend, not once exceeding it.This was a ..."[link]
II Editor
17 Aug 2016
NEW ARTICLE: Trends and Targets for 17/08/2016 " DRAX & EDINBURGH INV. (LSERX & LSE:EDIN) The amazing thing about DRAX is the adherence to a ruling BLUE downtrend since 2014. For a ten day period in July, the high of most days bumped against the ruling downtrend, not once exceeding it. ..."[link]
nk1999
13 Aug 2016
HSBC view From ADVFN:"Drax got a boost on Friday as HSBC upgraded the stock to 'hold' from 'reduce' with an unchanged price target of 315p following weakness in the shares after the first-half results.The bank pointed out that Drax has underperformed the market after its first-half results."The company mentioned that its FY 2016 EBITDA will come in at the bottom of the consensus range, which in our view has resulted in the share price weakness."HSBC noted the share price has fallen around 8% in absolute terms in the last month, whereas the sector index - MSCI Europe utilities - remained relatively flat over that period. As a result, the stock is now trading in line with its price target, which implies 1% upside.HSBC highlighted the short-term opportunity from auxiliary services."The short-term strategy is for Drax to offer services to National Grid as it seeks to balance intermittent and distributed power availability. National Grid suggested that these services could amount to £2bn by 2020."The bank said there are a wide range of services such as balancing reserve, reactive power and black start capability, that Drax could offer."With 10.5GW (nearly 20% of UK-installed capacity) of solar on the system and 20% of power provided by renewables in 2015 in the UK, these services will be increasingly required."HSBC said this was a considerable opportunity for Drax, which has capacity to service around 7-8% of the UK's power demand."
axel27
10 Aug 2016
Re: Wind energy price Capacity market helps fund that something else on standby cleared at £18/kW. So adds £2/MW/hr to cover for unreliable wind.This may increase in next CM round. Drax will benefit.Axel...looking for arbitrage on the grass cutting labour...global warming no doubt
MNKGV
05 Aug 2016
Wind energy price What makes this stuff , in particular, so expensive, is that it is so unreliable. Just keep remembering, that unless it is 100% available, something else has to be built and maintained 'on standby', ready to take over the demand at a moments notice. Now the lovely 'green' outlook begins to look a bit sick. Gas, Coal, Nuclear , Hydro, in that order are the only serious option. Not much time left for procrastination folks in charge.
