National Grid Results

[idpickering]

"Good results and performance on track
•Adjusted earnings per share of 28.2p, in line with last year
•​​Operating Profit of £1.9bn, up 1% includes favourable timing and FX
•Capital investment of £2.2bn, up 12% (6% at constant currency)
•New rates for Massachusetts Electric, allowed return on equity of 9.9%
•3-year Joint Proposal filed for downstate New York gas businesses
•Solid operational performance in the UK, generating savings for customers
•UK Gas Distribution majority sale on track
•Strong balance sheet maintained
•Interim dividend of 15.17p per share, in line with policy"

And later;

"Interim dividend of 15.17p, increased in line with policy

The Board has approved an interim dividend of 15.17p per ordinary share ($0.9427) per American Depositary Share). This represents 35% of the total dividend per share in respect of the last financial year 2015/16 and is in line with the Group dividend policy. The interim dividend is expected to be paid on 11 January 2017 to shareholders on the register as at 25 November 2016. A scrip dividend alternative will be offered for this interim dividend."


http://www.investegate.co.uk/national-g ... 00108055O/

[andycowl]

In lieu of a Rec, thanks Ian for posting these results summaries and the important dividend update. I use them to update my rolling forecast.

[idpickering]

In lieu of a Rec, thanks Ian for posting these results summaries and the important dividend update. I use them to update my rolling forecast.

You're welcome Andy. Thanks to Luniversal for reminding me that the results were today anyway. I in turn rely heavily on his weekly "Week ahead" posts, and I do hope he continues to provide that kind service to us all.

Regards,

Ian.

[88V8]

I imagine he's waiting to see whether any magic bullets are found for the insertion of Tables. Potentially more hassle on top of the many many hours he already spends.

V8

[Garudadri]

Despite reasonably good results all the UK listed utilities are pulling back, including the water companies as well as telecom. I reckon this might worsen slightly as this is in anticipation of rising rates that might worsen the debt profile of the listed utilities. Nevertheless, these cash generative businesses are going to be good buys in the next few weeks.

[idpickering]

Nevertheless, these cash generative businesses are going to be good buys in the next few weeks.

I have been mulling over bringing United Utilities on board my HYP, as I don't have a water utility currently. I shall mull (Picker) it over some more.

Ian.

[simoan]

Despite reasonably good results all the UK listed utilities are pulling back, including the water companies as well as telecom. I reckon this might worsen slightly as this is in anticipation of rising rates that might worsen the debt profile of the listed utilities. Nevertheless, these cash generative businesses are going to be good buys in the next few weeks.

I think this has more to do with people being less risk averse now they've realised Brexit+Trump has not ended the world. I've just topped up on Diageo which is sub-£20 again for this reason. IMHO there will be a time next year when it will swing back to "risk off" again and people will buy back into "safe haven" shares once they realise the full implications of Brexit+Trump. I can't see interest rates rising anytime soon, either here or in the US, and so I'm a buyer of high quality income shares.

All the best, Si

[nk104]

and so I'm a buyer of high quality income shares.

That's my thinking. Lower prices means more shares bought. Just keep building the income, and let the rest take care of itself.

[kempiejon]

Nevertheless, these cash generative businesses are going to be good buys in the next few weeks.

I have been mulling over bringing United Utilities on board my HYP, as I don't have a water utility currently. I shall mull (Picker) it over some more.

Ian.

Ian, I'd give the other water utilities a Picker too. UU was one of my earliest HYP, picks. Since I bought them there's been a return of capital and share reorganisation and decrease in dividend and hence my income. That put a black mark against them for my HYP, recently I added Pennon but looked at Severn Trent too. I think UU has the higher current yield, Pennon forecast is better and Pennon wins on dividend increase history. UU would not be my pick.

[Arborbridge]

Ian, I have UU and just for good measure, Mrs Arb has Pennon! Happy with either or both.


Arb.

[77ss]

I have been mulling over bringing United Utilities on board my HYP, as I don't have a water utility currently. I shall mull (Picker) it over some more.

Ian.

Ian, while pickering, do bear stated dividend policies in mind:

UU - At least RPI
PNN - RPI + 4%

In each case, covering the current regulatory period through 2020.

Another big difference is PNN's energy from waste business. Non-regulated; I suspect higher risk, higher reward.

I exited UU years ago, having got well and truly fed up with their constant restructuring. Things may have settled down since then of course.

[grimer]

NG closed 6.13% down. Ouch. What's that about?

I bought some shares in IMB recently - I got sick of waiting for the price to come down. Jesus. They closed at 3,389p and are down 11% in ten days. It isn't the red ink that bothers me, just the knowledge that I could have picked up a much better starting yield.

[kempiejon]

Ian, while pickering, do bear stated dividend policies in mind:

UU - At least RPI
PNN - RPI + 4%

In each case, covering the current regulatory period through 2020.

Another big difference is PNN's energy from waste business. Non-regulated; I suspect higher risk, higher reward.

I exited UU years ago, having got well and truly fed up with their constant restructuring. Things may have settled down since then of course.

All excellent points, factors in my redirecting to PNN. With the looks of things all the utes are better today than last week too.

[kempiejon]

NG closed 6.13% down. Ouch. What's that about?.

You mean yield closed 6% up, if we're looking to buy? Or alternatively holders' income is unchanged. I don't have NG nor know their current yield but it's never an "ouch" unless the income is damaged.

[unperplex]

Yes,National Grid today seems to be standing at only c. 5% above its 52 week low (893).At that price the yield (based on last years dividend) would appear to be 4.9%.
I am tempted.
Let's see whether it drops again tomorrow or bounces back.
I think it goes ex div on 25.11, so purchase before them would get one an extra 1.7% or so.

[grimer]

you mean yield closed 6% up

I'm not planning to sell, so it is currently 'noise' - but it seems like a crazy market move considering the trading statement. I'm sure it will bounce back. I just wish my double glazing bill hadn't arrived at this moment.

[Garudadri]

Am looking to TOP up on NG as well as the water utilities. The smaller utilities, namely PNN and SVT are cash cows . Overseas pension funds and sovereign funds from middle east or elsewhere may offer a buyout!!
Next week will be crucial, telecoms down as well. Risk taking will be the need of the hour!
What do you all feel?

[idpickering]

Ian, while pickering, do bear stated dividend policies in mind:

UU - At least RPI
PNN - RPI + 4%

In each case, covering the current regulatory period through 2020.

Another big difference is PNN's energy from waste business. Non-regulated; I suspect higher risk, higher reward.

I exited UU years ago, having got well and truly fed up with their constant restructuring. Things may have settled down since then of course.

All excellent points, factors in my redirecting to PNN. With the looks of things all the utes are better today than last week too.

Thanks for bringing up PNN. Not one I've looked at before. I see UU. does seem to have 'settled down", and with a market cap twice the size of PNN, I'd favour the former over the late. We'll see. There's no rush. Utilities of whatever ilk are currently 10.6% of my HYP already.

Regards,

Ian.

[unperplex]

As I said above, I am tempted to buy NG if the price drops further.
I am also considering VODA if the price falls to about 192 (or less of course) which would only be a 6 or 7% drop from today.In the current volatile climate I think this us quite possible in the short term.
Yield at 192 would be I think about 5.96%

Anyone any other thoughts ?

[unperplex]

As I said above, I am tempted to buy NG if the price drops further.
I am also considering VODA if the price falls to about 192 (or less of course) which would only be a 6 or 7% drop from today.In the current volatile climate I think this us quite possible in the short term.
Yield at 192 would be I think about 5.96%

Anyone any other thoughts ?