Drax Full-Year Report 2022

Financial highlights – strong financial performance underpinning investment and a sustain and growing dividend

• Adjusted EBITDA of £731 million up 84% (2021: £398 million)
• Strong liquidity and balance sheet – £698 million of cash and committed facilities at 31 December 2022
  • 1.6x Net debt to Adjusted EBITDA – significantly below 2x target
• Total dividend increased 11.7% to 21.0 pence per share (2021: 18.8 pence per share)
  • Proposed final dividend of 12.6 pence per share (2021: 11.3 pence per share)

As at 17 February 2023, Drax had 23.3TWh of power hedged between 2023 and 2025 on its ROC and hydro generation assets at an average price of £152.8/MWh, inclusive of equivalent gas sales (transacted for the purpose of accessing additional liquidity for forward sales from ROC units and highly correlated to forward power prices) and the cost of unwinding equivalent gas sales. Excludes any sales under the CfD mechanism.

Cash Generated from Operations £320 million (2021: £354 million), inclusive of collateral payments (2021: £168 million inflow) typically associated with higher commodity prices and expected to unwind through 2023 and 2024