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Shares of energy firm Drax Group DRX.L up 1.3% at 664p
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Ofgem closed investigation into Drax’s biomass profiling data, confirming no evidence found that its biomass isn’t sustainable
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Investigation has not found any evidence that Drax issued Renewable Obligation Certificates (ROCs) incorrectly
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Investigation found misreporting of profiling data of forestry type and sawlogs for Canadian consignments of woody biomass in FY22
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Drax to pay 25 million pound($33.03 million) penalty to Ofgem’s voluntary redress fund
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“Ofgem’s clearance should also have a positive read-across to the process of Drax potentially securing a bridging mechanism contract with the UK government,” brokerage Jefferies said
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Jefferies notes that while penalty will be booked under FY core profit, Drax still remains comfortable with its forecast of FY24 core profit of around 995 mln pound
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DRX stock rose about 35% YTD
Source: Drax Group