Drax’s sharp drop in H1 EBITDA to £70m from £120m, while disappointing, was well flagged by management and signposted by commodity moves. Of far more interest, we believe, are the impending regulatory changes that will modify Drax’s earnings profile. The company expects to hear about state aid on contracts for difference (CFDs) this autumn. This will mark a continuation of Drax’s transformation from its historic earnings sensitivity to swings in electricity, coal
28 Jul 2016
Light at the end of the tunnel for biomass
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Light at the end of the tunnel for biomass
Drax Group plc (DRX:LON) | 500 -7 (-0.3%) | Mkt Cap: 1,924m
- Published:
28 Jul 2016 -
Author:
Jamie Aitkenhead -
Pages:
2
Drax’s sharp drop in H1 EBITDA to £70m from £120m, while disappointing, was well flagged by management and signposted by commodity moves. Of far more interest, we believe, are the impending regulatory changes that will modify Drax’s earnings profile. The company expects to hear about state aid on contracts for difference (CFDs) this autumn. This will mark a continuation of Drax’s transformation from its historic earnings sensitivity to swings in electricity, coal