Proactive Investors - National Grid PLC (LON:NG) has recorded a jump in profits for the year to March 31, driven by huge growth in its electricity and ventures businesses.
Group underlying operating profit rose 10% to £4.58bn on a constant currency basis, aided by 39% and 68% increases from National Grid’s electricity and venture wings respectively.
Chief executive John Pettigrew commented that 2023 had been a “year of significant progress and strategic change for National Grid,” after the FTSE 100-listed firm sold off the majority of its gas distribution assets in the UK.
“There has never been a more exciting time to be at the heart of the energy industry,” Pettigrew continued.
“The opportunities for future growth are considerable and we will […] continue to work closely with governments and regulators to drive the energy transition forward.”
Earnings per share climbed 3% to 69.7p, with National Grid also recommending a final dividend of 37.6p, to bring the figure to 55.4p for the full year.
National Grid noted 2024 earnings would likely be hit by changes in the government’s capital allowance regime, causing a moderate decline, though Hargreaves Lansdown (LON:HRGV) forecast this would only last until 2025.
Steve Clayton, an analyst from the bank, commented National Grid would likely benefit from its key position in the UK’s energy transition, which includes decarbonising the grid by 2035.
“New generation assets must be hooked up to the grid as older, carbon-heavy generation is retired,” Hargreaves Lansdown analyst Steve Clayton explained.
“This means major expense for National Grid, upon which the regulator will allow additional revenues.
“This will drive growth for years to come.”
Shares fell 1.2% to 1,126.5p.