Company in the news: Drax

In April last year, I said Drax was a ‘sell’. It looked expensive on 18 times expected earnings, and I thought future profits would be hit by carbon emissions allowances costs, and as it made its power station comply with regulations. A plan to convert from coal to biomass looked to be stuck in the starting gates.

But events have proved me wrong. Although profits in 2013 are set to be lower than in 2012, Drax’s (LSE: DRX) prospects may have been transformed by the government, which last week agreed to let it charge a minimum of £105 [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Walking out on the banks

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 3 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

The problem with the Bank of England

Fracking: Nine reasons not to get carried away

Five small-cap stocks worth a flutter

This Dutch company could help us tame floods

ScreenHunter_01 Mar. 25 09.51

The latest investment opportunities & how you can profit - sign up to our FREE daily email HERE