FTSE 250 movers: Drax powers ahead despite windfall tax; AJ Bell not ringing

(Sharecast News) - FTSE 250: 19,061.23, -0.27% 1627 GMT East Mediterranean-focused oil and gas producer Energean fell despite lifting annual production guidance as its Israel Karish gas field came onstream.

The company said it expected annual production of 44 - 47,000 barrels of oil equivalent per day, reflecting the start-up of Karish on October 26.

"Production is ramping up, with gas currently flowing from the Karish Main-02 and Karish Main-01 wells. The Karish Main-03 well is expected to be opened shortly," the company said in a trading update.

"Substantially all of Energean's gas buyers have served notice to transition from their existing supplier to Energean. Commercial gas sales began on 28 October 2022."

AJ Bell shares were lower as the government slashed the tax free allowance on dividend earnings to £1,000 next year and £500 the year after.

Shares in energy firms initially slumped on Thursday after Chancellor Jeremy Hunt outlined new windfall taxes in his Autumn Statement, but prices quickly recovered.

Hunt confirmed that the energy industry windfall tax will rise to 35% from 25% from 1 January 2023 until March 2028. This was widely expected.

He also announced the introduction of a temporary 45% levy on electricity generators. There had been reports of a 40% tax on excess profits. The measures are expected to raise £14bn next year.

The news sent shares into the red, with electricity generator Drax falling after the announcement. However, the stocks were quick to bounce back.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said the shares rebounded "as investors recognised that the plan to scoop up money which has been falling into their profit baskets would be temporary and could be alleviated by investment allowances which will allow them to offset the levy".

"There will be concern this may lead to lower investment into renewables but given the clamour for acceleration companies could be hit by ethical investor headwinds if funding of greener, cleaner projects is scaled back at a time when large dividends are still paid out.

"The time limit set is important and will help with certainty for investment horizons. BP had initially warned it may scale back North Sea investment after the first windfall tax was announced but then rowed back on that once a clearer timescale was set. For the government there is a risk that energy prices will continue to fall back, which will limit what can be creamed off."

FTSE 250 - Risers

Drax Group (DRX) 600.00p 5.26% Mitie Group (MTO) 77.70p 4.58% Vietnam Enterprise Investments (DI) (VEIL) 530.00p 4.13% Balfour Beatty (BBY) 309.00p 3.28% Kainos Group (KNOS) 1,559.00p 3.25% Beazley (BEZ) 623.50p 3.14% Greencoat UK Wind (UKW) 151.30p 3.07% TBC Bank Group (TBCG) 2,195.00p 3.05% Bank of Georgia Group (BGEO) 2,440.00p 2.74% NextEnergy Solar Fund Limited Red (NESF) 109.90p 2.71%

FTSE 250 - Fallers

W.A.G Payment Solutions (WPS) 71.40p -8.81% IP Group (IPO) 65.25p -4.40% Energean (ENOG) 1,424.00p -4.04% Wood Group (John) (WG.) 156.05p -3.82% AJ Bell (AJB) 341.80p -3.66% Petrofac Ltd. (PFC) 119.80p -3.62% Bridgepoint Group (Reg S) (BPT) 206.00p -3.56% National Express Group (NEX) 168.30p -3.39% Chemring Group (CHG) 293.00p -3.14% Edinburgh Worldwide Inv Trust (EWI) 179.00p -3.03%