Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

National Grid earnings fall in first half, as expected

Published Nov 09, 2023 07:59 Updated Nov 09, 2023 08:11
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
National Grid earnings fall in first half, as expected
 
NG
+0.58%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Sharecast - The FTSE 100 company put the decrease down to non-recurring items reported last year, including property land sales and insurance proceeds.

Statutory operating profit declined 11% to £2bn, primarily due to gains on previous land sales and contributions from the Narragansett Electric Company (NECO).

Statutory earnings per share stood at 28.8p, down from 33.4p in the prior period.

National Grid (LON:NG) declared an interim dividend of 19.4p per ordinary share, per the company’s dividend policy.

The company said its regulatory capital investment reached a record £3.9bn, with a focus on regulated networks.

That investment marked a 10% increase at constant currency rates and 7% at actual exchange rates compared to the previous period.

The capital investment was primarily driven by higher connections spending and early investments related to the ‘Accelerated Strategic Transmission Investment’ (ASTI) programme in the UK electricity transmission business.

National Grid said it made significant progress on ASTI projects, including partnerships with SP Transmission and Scottish Hydro Electric Transmission for offshore projects.

It also initiated the procurement process for the enterprise model for onshore projects.

Continuing its capital re-allocation strategy, National Grid noted its agreement to sell an additional 20% equity interest in National Gas Transmission to a consortium led by Macquarie Asset Management and British Columbia Investment Management.

National Grid also emphasised strong regulatory progress, including the enactment of the Energy Act 2023, the publication of the ‘Delivering for 2035’ policy paper, and the initiation of new price controls under RIIO-ED2.

The firm said it also achieved £53m in group efficiency savings during the half-year, in addition to the £373m reported previously.

Looking ahead, National Grid projected a total cumulative capital investment of around £42bn from 2020-2021 to 2025-2026, with solid asset and earnings per share growth.

The company expected modestly lower underlying earnings per share for 2023-2024 due to changes in capital allowances legislation but anticipated long-term stability.

“Today, we’ve announced solid results and reconfirmed our full-year guidance as we continue to enhance critical energy infrastructure across the communities we serve,” said chief executive officer John Pettigrew.

“This financial performance reflects our role at the heart of the energy transition and a new phase of capital delivery that is firmly underway.

“Capital investment in our regulated networks reached a record £3.5bn in this half year, as we step up our investment in 17 major onshore and offshore transmission projects in the UK.”

Pettigrew noted that in the US, the firm was progressing with several major transmission projects to unlock renewable generation and upgrade infrastructure across its jurisdictions.

“We’re delivering this critical investment at the same time as ensuring affordability for our customers, having now exceeded our £400m efficiency savings target earlier than planned.

“In recognition of this strong progress, we are today updating our 2020-2021 to 2025-2026 five-year financial framework, which will modestly enhance our asset and earnings per share growth within our existing ranges.

“Whilst we’re pleased to see momentum around policy reform on both sides of the Atlantic, we now look forward to seeing announcements and consultations translated into decisions and action in order to deliver the energy transition.”

Reporting by Josh White for Sharecast.com.

Read more on Sharecast.com

National Grid earnings fall in first half, as expected
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email