Successful portfolio repositioning
Highlights
Financial delivery
■ Underlying operating profit of £4.0 billion was up 11% on a pro forma basis. This reflects higher UK Electricity Transmission (UK ET) net revenue to fund higher investment agreed as part of RIIO-T2, higher revenues following our rate order in our Massachusetts Gas business, the first year of operation of IFA2 and North Sea Link interconnectors, gains on investments in National Grid Partners which invests in companies innovating to accelerate the energy transition, and a lower adverse impact from COVID-19 compared to 2020/21.
■ Reflecting changes to our portfolio, including the first time contribution from WPD, the sale of our 50% St William JV to The Berkeley Group, a first year of operation from the North Sea Link and IFA2 interconnectors, and mark-to-market movements on US derivatives, statutory operating profit was up 82% to £4.4 billion.
■ Recommended final dividend to bring full year dividend to 50.97p, up 3.7% and in line with policy.
Last year, National Grid announced a strategic repositioning of its portfolio. Since then, we have:
■ Completed the £7.9 billion acquisition of Western Power Distribution (WPD), the UK's largest distributor;
■ Obtained regulatory clearances and are awaiting the conclusion of the legal process for the sale of the Narragansett Electric Company (Rhode Island) which we expect to complete in Q1 2022/23;
■ Agreed the sale of a 60% stake in National Grid Gas to Macquarie Asset Management and British Columbia Investment Management Corporation, expected to complete in the third quarter of 2022/23 (continued to be held as a discontinued operation); and
■ Increased the focus on our core business following the sale of our 50% stake in the St William Homes joint venture to The Berkeley Group plc, for a cash consideration of £413 million.
And later;
The Directors are proposing a final dividend for the year ended 31 March 2022 of 33.76p per share that will absorb approximately £1,231 million of shareholders' equity (assuming all amounts are settled in cash). It will be paid on 18 August 2022 to shareholders who are on the register of members at 4 June 2022 (subject to shareholders' approval at the AGM). A scrip dividend will be offered as an alternative.
https://www.investegate.co.uk/national- ... 00100283M/
Also posted on Company News here; viewtopic.php?p=501443#p501443
Ian.