DRAX GROUP

Drax has agreed with Brookfield and Radiant to develop an AI datacentre on its North Yorkshire site with eventual capacity over 1GW and an initial phase of up to 100MW operational from Q1 2028. The project could attract more than £20bn of investment and Drax aims to begin directly powering the campus by the early 2030s to secure future revenues after planned subsidy cuts. The plan drew positive market reaction, lifting Drax’s value almost 9%, but raises environmental concerns given the site’s high CO2 emissions and questions over grid capacity and reliance on off‑grid gas. » More on theguardian.com

UBS raises its adjusted 2026 earnings per share forecast for Drax to 83.90 pence and upgrades the stock from "sell" to "hold" due to already priced-in short-term disappointments. The bank sets a 12-month price target of 745 pence but cuts its 2027 estimate because of higher biomass costs and expects delays to the remaining share buyback until early 2027. UBS views the takeover of Bluefield Solar and investments in battery storage as offsets to declining biomass returns, but warns that capital allocation, cost inflation and buyback delays are downside risks. Potential upside factors include government intervention to preserve non-gas capacity, stronger power contracts in 2027/28 and initial data centre projects. » More on de.investing.com

Drax reported adjusted EBITDA of £279m for H1 2026, a 39% decline year-on-year and 4% below analyst estimates. The company confirms its 2026 adjusted EBITDA expectation at consensus level of £665m (range £643–681m). For 2029 Drax sets a new adjusted EBITDA target of £650–800m (previously £600–700m), with £50–100m expected from the battery storage/BESS segment; potential contributions from a BSIF acquisition are excluded. At the half-year net debt/EBITDA was 1.3 and available cash plus committed credit facilities amounted to £630m. » More on de.investing.com

Shareholders of the Bluefield Solar Income Fund have approved the recommended cash takeover by Drax subsidiary Smart Generation Holdco. At the court meeting, holders representing 98.77% of the value of the shares voted in favour of the deal; the special-resolution vote at the general meeting returned 99.02% approval. Two conditions set out in the scheme document have been satisfied; other conditions, including scrutiny by the UK National Security and Investment and final court approval, are still outstanding. Subject to the remaining conditions, the takeover is expected to take effect on 31 July 2026; Bluefield shares are to be suspended from trading before the court hearing and delisted on completion. » More on de.investing.com

The Financial Conduct Authority has closed a nearly 10‑month review of Drax’s reporting on the origins of its wood pellets, saying its examination of thousands of pages found no evidence warranting further action. The decision follows a 2024 Ofgem finding that led Drax to pay £25m for data governance failures, but regulators did not find biomass sourcing to be unsustainable or that Drax wrongly claimed renewable subsidies. Drax said it cooperated with the FCA and the company’s shares rose about 1.2% in early trading. » More on theguardian.com