Shares in Drax Group (LSE:DRX) were searching for direction after the Financial Conduct Authority closed its investigation into the company's statements about its biomass sourcing and decided to take no further action.
The investigation, launched last August, followed concerns raised about disclosures to the market regarding the sustainability of Drax's Canadian biomass operations.
The regulator said it had reviewed thousands of pages of material and interviewed individuals from the company as part of an extensive investigation.
The scope of the probe was limited to whether Drax's annual reports and accounts between 2021 and 2023 contained misleading statements or omitted information that investors needed to make informed decisions.
The FCA said it did not find evidence that justified further action and had "no concerns warranting further investigation".
The regulator opened the investigation following enquiries made after Ofgem announced its conclusions in August 2024 on Drax's reporting of biomass profiling data.
It stressed that while Drax is listed in London, it is not a regulated financial services firm, and so was investigated under rules governing listed companies' disclosure obligations.
Will Gardiner, chief executive of the Yorkshire-based group, said: "We recognise the importance of compliance with our regulatory obligations and have worked constructively with the FCA throughout this investigation."
He added: "We are pleased to see the investigation closed with no action being taken."
