Latest news with #DraxGroup
Bloomberg
7 days ago
- Business
- Bloomberg
Burning Trees for Electricity Isn't Sustainable
On Monday, another step was taken toward extending government subsidies for the UK's largest polluter. A delegated legislation committee voted to pass draft regulation allowing for Drax Group Plc to receive government support for a further four years, from 2027 to 2031. The new funding deal, announced back in February, is a vast improvement on the current situation. But it exposes holes in the government's plans for the future of biomass-generated power.
Yahoo
03-06-2025
- Business
- Yahoo
3 Prominent UK Dividend Stocks To Consider
The UK market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting the interconnectedness of global economies and their impact on domestic markets. In such uncertain times, dividend stocks can offer investors a degree of stability and income potential, making them an attractive consideration for those navigating volatile conditions. Name Dividend Yield Dividend Rating WPP (LSE:WPP) 6.77% ★★★★★★ Man Group (LSE:EMG) 7.19% ★★★★★☆ Keller Group (LSE:KLR) 3.23% ★★★★★☆ 4imprint Group (LSE:FOUR) 5.09% ★★★★★☆ Dunelm Group (LSE:DNLM) 6.53% ★★★★★☆ Treatt (LSE:TET) 3.06% ★★★★★☆ NWF Group (AIM:NWF) 4.79% ★★★★★☆ Grafton Group (LSE:GFTU) 3.69% ★★★★★☆ James Latham (AIM:LTHM) 7.05% ★★★★★☆ OSB Group (LSE:OSB) 6.79% ★★★★★☆ Click here to see the full list of 61 stocks from our Top UK Dividend Stocks screener. Let's explore several standout options from the results in the screener. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Drax Group plc, along with its subsidiaries, operates in renewable power generation in the United Kingdom and has a market cap of £2.34 billion. Operations: Drax Group's revenue is primarily derived from its Biomass Generation segment (£4.92 billion), followed by Energy Solutions (£3.79 billion), Pellet Production (£942.10 million), and Flexible Generation (£222.80 million). Dividend Yield: 3.9% Drax Group recently approved a final dividend of 15.6 pence per share, highlighting its commitment to shareholder returns despite a historically unstable dividend track record. The company's dividends are well-covered by earnings and cash flows, with payout ratios of 18.9% and 19.5%, respectively, suggesting sustainability in the near term. However, the dividend yield is lower than top-tier UK payers at 3.92%, and insider selling raises concerns about future stability despite trading below estimated fair value. Take a closer look at Drax Group's potential here in our dividend report. The valuation report we've compiled suggests that Drax Group's current price could be quite moderate. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Seplat Energy Plc is an independent energy company involved in oil and gas exploration, production, and gas processing across Nigeria, Bahamas, Italy, Switzerland, England, and Singapore with a market cap of £1.28 billion. Operations: Seplat Energy Plc's revenue is primarily derived from its oil segment, contributing $1.60 billion, and its gas segment, which adds $140.44 million. Dividend Yield: 7.4% Seplat Energy has declared an interim dividend of US$ 0.046 per share, reflecting its commitment to shareholder returns despite a history of volatile payments. The company's dividends are supported by a payout ratio of 50.5% and a cash payout ratio of 41.1%, indicating sustainability from earnings and cash flows. Recent amendments to the company's capital structure at the AGM suggest strategic adjustments in line with growth objectives, while recent board changes could influence future governance decisions impacting dividends. Click here and access our complete dividend analysis report to understand the dynamics of Seplat Energy. In light of our recent valuation report, it seems possible that Seplat Energy is trading beyond its estimated value. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Unite Group PLC owns, manages, and develops purpose-built student accommodation facilities for the higher education sector in the United Kingdom, with a market cap of £4.22 billion. Operations: Unite Group PLC generates revenue of £299.30 million from its operations in the purpose-built student accommodation sector for higher education in the UK. Dividend Yield: 4.3% Unite Group's dividend strategy is supported by a payout ratio of 57.4% and cash flow coverage at 87.4%, indicating sustainability despite past volatility in payments. The stock trades at a good value, below its estimated fair value by 19.4%, with analysts expecting price appreciation. While the dividend yield of 4.33% lags behind top UK payers, dividends have grown over the last decade. A recent joint venture with Manchester Metropolitan University for new student accommodations may bolster future growth prospects. Click to explore a detailed breakdown of our findings in Unite Group's dividend report. Our expertly prepared valuation report Unite Group implies its share price may be lower than expected. Click this link to deep-dive into the 61 companies within our Top UK Dividend Stocks screener. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:DRX LSE:SEPL and LSE:UTG. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Reuters
01-05-2025
- Business
- Reuters
UK's Drax flags 2025 core profit at top end of consensus
May 1 (Reuters) - British power company Drax Group (DRX.L), opens new tab on Thursday said it expects its annual adjusted core profit to be at the top end of analyst consensus estimates. Analysts consensus for 2025 adjusted earnings before interest, taxes, depreciation and amortization was 874 million pounds ($1.2 billion), with a range of 848 million pounds to 896 million pounds, according to a company-compiled poll. ($1 = 0.7523 pounds)
Yahoo
01-03-2025
- Business
- Yahoo
What Does The Future Hold For Drax Group plc (LON:DRX)? These Analysts Have Been Cutting Their Estimates
One thing we could say about the analysts on Drax Group plc (LON:DRX) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Following the latest downgrade, the six analysts covering Drax Group provided consensus estimates of UK£5.2b revenue in 2025, which would reflect an uneasy 16% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to crater 30% to UK£1.01 in the same period. Prior to this update, the analysts had been forecasting revenues of UK£7.5b and earnings per share (EPS) of UK£1.03 in 2025. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a pretty serious reduction to revenues and reconfirming their earnings per share estimates. See our latest analysis for Drax Group The consensus has reconfirmed its price target of UK£8.51, showing that the analysts don't expect weaker sales expectationsthis year to have a material impact on Drax Group's market value. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 16% by the end of 2025. This indicates a significant reduction from annual growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.5% per year. It's pretty clear that Drax Group's revenues are expected to perform substantially worse than the wider industry. The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Drax Group's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Drax Group after today. Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Drax Group going out to 2027, and you can see them free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
27-02-2025
- Business
- Yahoo
UK's Drax reports higher annual profit, helped by rising renewable power
By Susanna Twidale LONDON (Reuters) - British power company Drax Group (DRX.L) on Thursday reported a 5.5% increase in annual profit, in line with forecasts and due to an increase in renewable power generation and an improved performance from its pellet division. Drax, which has converted coal plants to run on biomass, provides around 6% of Britain's electricity. Earlier this month, the government extended subsidies for the biomass units that were due to expire in 2027 until 2031 but said they would be half the current level. Under the new subsidy system the plants will run less frequently and only when the power is needed, the government said. The new deal "is a major milestone for the business and provides the basis on which the site continues to generate electricity for the country,' CEO Will Gardiner said in the results statement. Biomass power production was 27% higher last year compared with 2023 with few maintenance outages, the company said. The company reported earnings before interest, tax, depreciation and amortization of 1.06 billion pounds ($1.34 billion) for 2024. Green groups opposing the use of biomass say production of the pellets can contribute to deforestation and question whether the process of burning the pellets is really sustainable. The company says its pellets come from wood residuals or byproducts from trees primarily used for lumber, and that sustainably managed forests can help to increase forest growth. ($1 = 0.7899 pounds)
