£DRX Anyone else own Drax? I would be interested in your view. Held some for a while and doubled my stake back in Jan 2020 as they showed up very positively on the QV Screen. Today's report is (on balance) positive IMO and the dividend is confirmed.
I am under water price wise, but my current judgement is there are many worse places to keep my money. I can also see a degree of protection from bad debts on the consumer front through Government support.
It's on my watch list. I keep looking at it but can't figure out what I think. I don't know enough about the energy market.
Converting the coal plant sounds like a good move long term, and their hydro looks great with their ability to smooth supply to the grid.
They have a lot of debt though, and I have no idea what the long term price of electricy will look like.
Will be interesting to hear the discussion!
Used to hold Drax about 12 years as a defensive income stock but sold them when the crazy green virtual signalling UK govt encouraged them to introduce a policy to importing vast chunks of shipped biomass wood from North America instead of using local coal in their power station
I picked up some after management buying in March 2020. Their pumped storage facility is interesting and scored a recent planning victory for new gas powered turbines. The wood pellets count as renewable and they control the forestry and production site in USA. I think nuclear is on its way out in UK to be replaced by some kind of energy storage so they’ll be a need for companies like Drax when the wind not blowing or sun not shining. Should also be resilient if inflation takes off.
