Drax (DRX) began operating the second of three planned biomass conversions last year, boosting biomass generation by just over 60 per cent to 7.9 TWh (terawatt-hours). However, the group is still waiting for EU clearance for its third conversion under the contracts for difference regime. Finance director Tony Quinlan says he hopes this will be granted this year. If not, a six-to-nine-month investigation will follow.
Strip out £66m of unrealised gains, compared with losses of £110m last year, and cash profit remained stable at around £229m. Depreciation was £81m during the year, compared with £65m in 2013, reflecting the commissioning of its second biomass unit.
While biomass now makes up almost a third of the energy generator's fuel mix, its historic reliance on coal meant CPS (carbon price support) rates increased by 93 per cent and added £56m to fuel costs. The group has also commissioned two wood-pellet plants, which it uses to fire its biomass units. These will produce 450,000 tonnes and become operational in the first half of 2015.
Deutsche Bank expects adjusted EPS of 17.92p in 2015, down from 20.07p in 2014.
DRAX (DRX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 429p | MARKET VALUE: | £1.7bn | |
| TOUCH: | 428-429p | 12-MONTH HIGH: | 829p | LOW: 349p |
| DIVIDEND YIELD: | 3% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 388p | NET DEBT: | 6% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 1.7 | 255.0 | 52.0 | 32.0 |
| 2011 | 1.8 | 338.0 | 127.0 | 27.8 |
| 2012 | 1.8 | 190.0 | 44.0 | 25.3 |
| 2013 | 2.1 | 31.8 | 13.0 | 17.6 |
| 2014 | 2.8 | 165.9 | 32.0 | 11.9 |
| % change | +36 | +422 | +146 | -32 |
Ex-div: 23 Apr Payment: 15 May | ||||
