Drax Report on International Day of Forests Sparks Scrutiny Amidst Wood Biomass Concerns

Drax's annual report, released on International Day of Forests, revealed the company's significant sourcing and burning of wood for energy production. While the government supports this practice, environmental concerns persist. The report also highlights the company's challenges in achieving carbon neutrality, resulting in a reduced bonus for CEO Will Gardiner. Additionally, the report sheds light on executive compensation at Angus Energy, with Lord Lucan receiving the highest package despite stepping down as chairman.

Timing is Everything: Drax's Annual Report Release on International Day of Forests Raises Questions

As the adage goes, timing is paramount. With this in mind, one cannot help but wonder if Drax made a strategic decision by releasing its annual report on the International Day of Forests.

In its report, the energy producer, which utilizes wood biomass as fuel at its Yorkshire facility, disclosed that it sourced 8 million tonnes of wood globally and consumed 6 million in 2023. While the government endorses the practice of burning wood byproducts from felled trees, there is growing public outcry to halt such practices.

Drax's long-term goal of achieving carbon neutrality hinges on capturing emissions as they are generated and sequestering them underground. However, CEO Will Gardiner's missed bonus targets due to sluggish progress on this project have cast a shadow over the company's environmental aspirations.

Executive Compensation under Scrutiny

Lord Lucan, the former executive chairman of Angus Energy, received the highest compensation among executives despite stepping down in August. The British gas producer, formerly led by George Bingham, the eighth Earl of Lucan, whose father vanished under suspicion of murder in the 1970s, operates the Saltfleetby gas field in Lincolnshire.

Lord Lucan received £331,000, while CEO Richard Herbert, who joined during the year, earned £219,000.

Short-Sellers Target Kingfisher

Investors are eagerly anticipating the release of B&Q owner Kingfisher's full-year results on Monday, but a significant portion of shareholders may be hoping for disappointing figures.

The company holds the dubious distinction of being the most-shorted stock in the FTSE 100, with 6.7% of shares held by investors betting on a price decline. It is the second-most shorted stock on the entire London Stock Exchange, surpassed only by oilfield engineer Petrofac at 11.1%.

Short-sellers may have ample justification for their skepticism, as market forecasts indicate a decline in Kingfisher's annual profit from £611 million last year to £556 million, which is likely to exert downward pressure on its share price.

Prime Minister Sunak's Unlikely Supporters

Despite facing dismal poll numbers and internal dissent, Prime Minister Sunak has seemingly secured an unexpected source of support: cryptocurrency enthusiasts.

An image circulated online last week depicting masked individuals outside the Houses of Parliament promoting 'Riski Soonak,' a so-called 'memecoin' featuring a caricature of the Prime Minister's face against a Union Jack backdrop.

Despite their efforts, it is doubtful that Sunak will eagerly embrace this unconventional base of support. According to the crypto data website Dex Screener, one Riski Soonak coin is valued at a mere 0.0021p, a far cry from the £50,000 price tag associated with one bitcoin.