Graanul reported its Q3 results, which were broadly in line with expectations. Demand for wood pellets has strengthened since the
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Drax announced this morning that it has entered into a contract with the UK Government to continue operating its biomass
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Graanul released its Q2 results this morning, with a conference call scheduled for tomorrow at 1 pm. The initial reaction to the results is that
Read MoreGraanul provided an update on the consent solicitation process, as over 75% of existing noteholders have acceded to the Amend and Extend agreement. The early
Read MoreThe Drax results yesterday, and management’s subsequent comments, reaffirm our view that Graanul will remain under pressure post FY26. We view the
Read MoreFitch has downgraded Graanul’s credit rating to B minus from B plus, citing refinancing risk as the primary concern. Notably, Fitch does not
Read MoreThis is broadly the deal we were looking for - safe perhaps for at least a token of shareholder contribution. Absent any information from Drax et al., neither
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The Q1 numbers are in line with our view. The financials are the secondary focus for Graanul, and all eyes will be on the Company’s plan to secure
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Time is ticking. We are revisiting the name after receiving several questions about it. The bonds have been stuck in the mid-80s since April as doubts
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Graanul released its FY24 annual report yesterday but most of the numbers were already in its non-deal roadshow presentation in February. Despite
Read MoreDrax released its FY24 numbers but we await the Q&A to glean new information about its agreement with the UK government regarding subsidies for
Read MorePost the investor meetings last week, we have added our thoughts to the potential refinancing debate.
Ultimately, we don’t believe a refinancing is currently possible given the debate around the name. The uncertainty beyond FY26, with limited contracted sales coupled with public doubts about the “green” credentials of biomass, is juxtaposed with
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The 5pt drop in Graanul bond price reflects the realisation that refinancing isn’t imminent. The Company presentation yesterday highlighted the
Read MoreThe Graanul call has just ended. Due to overlapping call schedules we are only listening to a replay now. We will revert with an update.
Read MoreDrax confirmed in a RNS that it has a Heads of terms agreed with UK Government for low carbon dispatchable CfD, ensuring Drax’s biomass plants
Read MoreFollowing Graanul’s trading statement earlier this week, the Company announced investor calls/Roadshow next week. Register for the call https://evercall.co/oacc/53645 on
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Graanul released a decent trading statement for FY24 but the focus will remain on its ability to refinance its 2026 bond maturities. Leverage remains at
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