UK markets closed
  • NIKKEI 225

    26,107.65
    -315.82 (-1.20%)
     
  • HANG SENG

    21,586.66
    -266.41 (-1.22%)
     
  • CRUDE OIL

    98.15
    -1.35 (-1.36%)
     
  • GOLD FUTURES

    1,735.80
    -28.10 (-1.59%)
     
  • DOW

    30,872.17
    -95.65 (-0.31%)
     
  • BTC-GBP

    16,990.31
    +420.32 (+2.54%)
     
  • CMC Crypto 200

    438.88
    +3.36 (+0.77%)
     
  • ^IXIC

    11,322.38
    +0.14 (+0.00%)
     
  • ^FTAS

    3,910.80
    +46.89 (+1.21%)
     

Drax shares sink 25 pct on climate-change tax fears

LONDON, July 8 (Reuters) - Shares (Berlin: DI6.BE - news) of UK power producer Drax sank 25 percent to an all-time low on Wednesday, with traders citing a possible 50 million pounds ($76.75 million) hit from the scrapping of a climate-change tax exemption.

At 1454 GMT, shares of Drax were trading at 265.80 pence, a drop of 24.9 percent, after hitting a low of 260 pence earlier in the day. UK Finance Minister George Osborne announced the measure in his budget speech.

Traders pointed to a Goldman Sachs (NYSE: GS-PB - news) note that estimated Drax might face a 50 million-pound hit to earnings before interest and tax. ($1 = 0.6515 pounds) (Reporting by Sudip Kar-Gupta and Atul Prakash; Editing by Lionel Laurent)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting