National Grid (NG.)

[Steveam]

The interim dividend is expected to be paid on 11 January 2024 to shareholders on the register as at 24 November 2023.

Best wishes, Steve

[Dod101]

Interesting that they, unlike SSE, are happy to continue to increase their dividend despite a lot of demand for new investment. Somebody may or may not try to measure the effect of these two contrasting approaches over say the next five years.

Anyway, good for us income seekers.

Dod

[idpickering]

Ofgem - Sector Specific Methodology Consultation.

Ofgem has today published sector specific consultation documents for our UK Electricity Transmission business relating to the RIIO-T3 regulatory period which will be effective from April 2026 through to March 2031.

The consultation is the next phase of the RIIO-T3 process and provides the framework on which we will base our Electricity Transmission business plan, due for submission in late 2024. As we look towards RIIO-T3, and a further step up in investment, we especially welcome Ofgem's recognition in this consultation of the need to deliver clear signals and direction so as to provide certainty and assurance to investors that projects are viable, investable and deliverable. This will enable National Grid to continue delivering world class networks at the lowest cost for consumers.

This consultation is part of a wider suite of changes required to keep the energy transition moving at pace, and we are encouraged by the recent progress from government and Ofgem on a number of fronts. We are now moving to deliver our new contractual model for working with the supply chain. The procurement process for our enterprise partnership model has been launched, and strategic partners will be selected in the coming months to ensure we can deliver major projects in the timeframes required.

Getting the right policies and regulatory framework in place will enable the industry to keep driving forward and overcome barriers to reach a net zero energy system as soon as possible. We look forward to providing a detailed response to this sector specific consultation in the first quarter of 2024, as a next step.

https://www.investegate.co.uk/announcem ... on/7938692


Ian (I hold NG.).

[idpickering]

Grid Guide to Accelerating UK Connections

National Grid is hosting an investor event in London today focusing on accelerating connections across its UK Electricity Transmission and Distribution businesses.

The event forms part of National Grid's ESG investor education series. It will demonstrate the progress we've been making within the regulatory and policy parameters in which we operate. It will also expand on why further connections reform is needed to deliver the clean energy and infrastructure required if the country is to meet the UK Government's target of a decarbonised grid by 2035.

https://www.investegate.co.uk/announcem ... ns/8027614

Ian.

[idpickering]

Completion of sale of 20% of National Gas

National Grid plc is pleased to announce that it has today completed the sale of a further 20% equity interest in National Gas to the existing majority owners, a consortium of long-term investors led by Macquarie Asset Management, which we announced on 19 July 2023.

https://www.investegate.co.uk/announcem ... as/8081301

Ian (I hold NG.).

[ElCid]

Completion of sale of 20% of National Gas

National Grid plc is pleased to announce that it has today completed the sale of a further 20% equity interest in National Gas to the existing majority owners, a consortium of long-term investors led by Macquarie Asset Management, which we announced on 19 July 2023.

https://www.investegate.co.uk/announcem ... as/8081301

Ian (I hold NG.).

Beware Macquarie Asset Management. They loaded up Thames Water with loads of debt. OFWAT was asleep, lets hope the regulators have learned their lesson.

[daveh]

Completion of sale of 20% of National Gas



https://www.investegate.co.uk/announcem ... as/8081301

Ian (I hold NG.).

Beware Macquarie Asset Management. They loaded up Thames Water with loads of debt. OFWAT was asleep, lets hope the regulators have learned their lesson.

Loaded up with debt, took out large dividends and then sold it on (to USS pension scheme among others) and it is now in problems. Good business for Macquarie not good for those who bought it and not good for Thames Water customers. Not a good custodian of UK assets.

[idpickering]

Three-year rate plan proposal filed for National Grid's downstate New York Gas Businesses.

National Grid has filed a Joint Proposal with the New York Public Service Commission for a multi-year rate settlement for its two downstate New York gas distribution businesses (KEDNY and KEDLI).

The proposed settlement is for a three-year rate plan with new rates effective April 2024. A final decision from the New York Public Service Commission is expected in the next few months.

https://www.investegate.co.uk/announcem ... li/8130397

Ian.

[idpickering]

Pre-Close Update ahead of 2023/24 Full Yr Results.

National Grid today issues a pre-close update ahead of announcing results for the year ended 31 March 2024 on 23 May 2024.

We now expect Underlying EPS for 2023/24 to be in line with the prior year, at actual exchange rates and before the reporting change noted below.

In the 2023 Spring budget, the UK Government introduced 'full expensing' tax relief for qualifying capital expenditure to encourage greater levels of investment from businesses. This change became permanent in November 2023. To represent underlying profitability more accurately, and to align with UK peers, we will now report Underlying Earnings and Underlying EPS excluding the impact of deferred tax in our UK Electricity Transmission and Distribution businesses.

This reporting change will be reflected in our 2023/24 Full Year results, which will lead to an expected increase to Underlying EPS of around 8 pence per share.

Further details will be provided in our 2023/24 Full Year results, and a note on the change to our definition of Underlying Earnings and Underlying EPS can be found on the Investors section of our website here¹.

https://www.investegate.co.uk/announcem ... ts/8143601

Ian (I hold).

[idpickering]

National Grid PLC 2023/24 Full Year Results

John Pettigrew, Chief Executive, said:

"Today is a defining moment for National Grid as we announce a significant increase in investment that cements our position as a leader in the energy transition on both sides of the Atlantic.

Governments and regulators are moving with increased urgency to attract the levels of investment required to meet their net zero ambitions, giving us improved visibility and confidence over our medium term investment plan. That is why we're announcing today a new five-year financial framework. We will be investing £60 billion in the five years to the end of March 2029 - that's nearly double the level of investment of the past five years. We expect this significant step-up in capital investment will deliver annual group asset growth of around 10%, and 6-8% underlying EPS CAGR from a 2024/25 baseline, supported by a comprehensive financing plan that includes a £7 billion equity raise.

This is an unprecedented time for our industry that is creating significant opportunities for National Grid today, over the next five years and for decades to come. Our new five-year investment plan will deliver long-term value and returns for our shareholders, support over 60,000 more jobs, and accelerate the decarbonisation of the energy system for the digital, electrified economies of the future.

Our readiness to take this step is underscored by another year of strong financial and operational performance, with underlying operating profit and underlying EPS both up 6% at constant currency, with record investment of £8.2 billion across the Group. In the UK, our 17 major onshore and offshore transmission projects are moving ahead at pace, and in the US our $4 billion 'Upstate Upgrade' is underway representing the largest investment in New York's electricity transmission network for over a century. Our sixth interconnector, the Viking Link to Denmark, came online in December and is the world's longest onshore and subsea HVDC cable, demonstrating the world-class capabilities within National Grid.

Alongside our new five-year financial framework, we are also today further evolving our strategy to focus on networks and will therefore be streamlining our business as we announce our intention to sell Grain LNG, our UK LNG asset, and National Grid Renewables, our US onshore renewables business."

And later;

Dividends

The Directors are proposing a final dividend for the year ended 31 March 2024 of 39.12p per share that would absorb approximately £1,455 million of shareholders' equity (assuming all amounts are settled in cash). It will be paid on 19 July 2024 to shareholders who are on the register of members at 7 June 2024 (subject to shareholders' approval at the AGM). A scrip dividend will be offered as an alternative.

https://www.investegate.co.uk/announcem ... ts/8215965

Ian (I hold).

[Gerry557]

It looks like a dividend cut, sorry rebase too. Will have to check the details later.

[idpickering]

7 for 24 fully underwritten £7bn Rights Issue

To fund a significant step up in capital investment to around £60 billion in energy network infrastructure, the Board of National Grid plc ("National Grid" or the "Company") today announces a capital raise of approximately £7.0 billion by way of a fully underwritten Rights Issue of 1,085,448,980 New Shares at 645 pence per New Share on the basis of 7 New Shares for every 24 Existing Shares (the "Rights Issue").

https://www.investegate.co.uk/announcem ... ue/8215977

Ian.

[88V8]

It looks like a dividend cut, sorry rebase too. Will have to check the details later.

Yes, same divi spread over more shares.

Deep discount. No wonder it's 'fully underwritten'.
Not sure whether I will take it up given the oncoming change of govt and the inclination of govts to interfere with utilities.

V8

[IanTHughes]

It looks like a dividend cut, sorry rebase too. Will have to check the details later.

No dividend cut here, not if one considers the full year. On the contrary, the dividend has increased year-on-year for many years.

Year End  | Dividend | 1 Year | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-24 | 58.5200  |  5.56% |   5.98% |   4.33% |    3.37% |    5.57%
31-Mar-23 | 55.4400  |  8.77% |   4.51% |   3.84% |    3.10% |    6.03%
31-Mar-22 | 50.9700  |  3.68% |   2.49% |   2.86% |    2.64% |    5.95%
31-Mar-21 | 49.1600  |  1.21% |   2.29% |   2.55% |    3.06% |    6.09%
31-Mar-20 | 48.5700  |  2.60% |   3.14% |   2.53% |    2.35% |    6.44%
31-Mar-19 | 47.3400  |  3.07% |   2.99% |   2.41% |    2.88% |    6.65%
31-Mar-18 | 45.9300  |  3.75% |   2.32% |   2.37% |    3.36% |    6.91%
31-Mar-17 | 44.2700  |  2.15% |   1.75% |   2.42% |    4.43% |    7.38%
31-Mar-16 | 43.3400  |  1.10% |   1.99% |   3.57% |    5.20% |         
31-Mar-15 | 42.8700  |  2.00% |   2.96% |   2.18% |    6.11% |         
31-Mar-14 | 42.0300  |  2.89% |   4.94% |   3.35% |    7.83% |         
31-Mar-13 | 40.8500  |  4.00% |   2.00% |   4.36% |    9.04% |         
31-Mar-12 | 39.2800  |  8.00% |   3.29% |   6.48% |    9.37% |         
31-Mar-11 | 36.3700  | -5.51% |   3.29% |   6.86% |    9.20% |         
31-Mar-10 | 38.4900  |  8.00% |  10.28% |  10.18% |   10.69% |         
31-Mar-09 | 35.6400  |  8.00% |  10.94% |  12.50% |   10.55% |         
31-Mar-08 | 33.0000  | 14.98% |  11.67% |  13.92% |   10.58% |         
31-Mar-07 | 28.7000  |  9.96% |  13.21% |  12.34% |   10.41% |         
31-Mar-06 | 26.1000  | 10.13% |  14.91% |  11.60% |          |         
31-Mar-05 | 23.7000  | 19.82% |  13.90% |  11.20% |          |         
31-Mar-04 | 19.7800  | 15.00% |   9.46% |   8.64% |          |         

Only one glitch in 20+ years, which was more than put right the very next year.

Enjoy!


Ian

[daveh]

It looks like a dividend cut, sorry rebase too. Will have to check the details later.

No dividend cut here, not if one considers the full year. On the contrary, the dividend has increased year-on-year for many years.

Year End  | Dividend | 1 Year | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-24 | 58.5200  |  5.56% |   5.98% |   4.33% |    3.37% |    5.57%
31-Mar-23 | 55.4400  |  8.77% |   4.51% |   3.84% |    3.10% |    6.03%
31-Mar-22 | 50.9700  |  3.68% |   2.49% |   2.86% |    2.64% |    5.95%
31-Mar-21 | 49.1600  |  1.21% |   2.29% |   2.55% |    3.06% |    6.09%
31-Mar-20 | 48.5700  |  2.60% |   3.14% |   2.53% |    2.35% |    6.44%
31-Mar-19 | 47.3400  |  3.07% |   2.99% |   2.41% |    2.88% |    6.65%
31-Mar-18 | 45.9300  |  3.75% |   2.32% |   2.37% |    3.36% |    6.91%
31-Mar-17 | 44.2700  |  2.15% |   1.75% |   2.42% |    4.43% |    7.38%
31-Mar-16 | 43.3400  |  1.10% |   1.99% |   3.57% |    5.20% |         
31-Mar-15 | 42.8700  |  2.00% |   2.96% |   2.18% |    6.11% |         
31-Mar-14 | 42.0300  |  2.89% |   4.94% |   3.35% |    7.83% |         
31-Mar-13 | 40.8500  |  4.00% |   2.00% |   4.36% |    9.04% |         
31-Mar-12 | 39.2800  |  8.00% |   3.29% |   6.48% |    9.37% |         
31-Mar-11 | 36.3700  | -5.51% |   3.29% |   6.86% |    9.20% |         
31-Mar-10 | 38.4900  |  8.00% |  10.28% |  10.18% |   10.69% |         
31-Mar-09 | 35.6400  |  8.00% |  10.94% |  12.50% |   10.55% |         
31-Mar-08 | 33.0000  | 14.98% |  11.67% |  13.92% |   10.58% |         
31-Mar-07 | 28.7000  |  9.96% |  13.21% |  12.34% |   10.41% |         
31-Mar-06 | 26.1000  | 10.13% |  14.91% |  11.60% |          |         
31-Mar-05 | 23.7000  | 19.82% |  13.90% |  11.20% |          |         
31-Mar-04 | 19.7800  | 15.00% |   9.46% |   8.64% |          |         

Only one glitch in 20+ years, which was more than put right the very next year.

Enjoy!


Ian

Yes but that is history. They have announced a deeply discounted rights issue and are saying they will maintain the dividend at its present level in total cash terms, so that will amount to a future rebasing of the dividend (by about 15% if I recall correctly) when that dividend is spread over the increased number of shares.

[EthicsGradient]

It looks like a dividend cut, sorry rebase too. Will have to check the details later.

Yes, same divi spread over more shares.

Deep discount. No wonder it's 'fully underwritten'.
Not sure whether I will take it up given the oncoming change of govt and the inclination of govts to interfere with utilities.

V8

It's not spread over more shares, though that may not be immediately clear. Timetable:

Admission and commencement of dealings in New Shares, nil paid, on the London Stock Exchange: 8.00 a.m. on 24 May 2024

Existing Shares marked "ex-rights" by the London Stock Exchange: 8.00 a.m. on 24 May 2024

( dividend "will be paid on 19 July 2024 to shareholders who are on the register of members at 7 June 2024" )

Latest time and date for acceptance, payment in full and registration of renunciation of Provisional Allotment Letters: 11:00 a.m. on 10 June 2024

"The New Shares, when issued and fully paid, will rank pari passu in all respects with the Existing Shares, save for the right to receive the recommended FY24 Final Dividend of 39.12 pence per Share which shall only be paid in respect of the Existing Shares."

[daveh]

Yes, same divi spread over more shares.

Deep discount. No wonder it's 'fully underwritten'.
Not sure whether I will take it up given the oncoming change of govt and the inclination of govts to interfere with utilities.

V8

It's not spread over more shares, though that may not be immediately clear. Timetable:

Admission and commencement of dealings in New Shares, nil paid, on the London Stock Exchange: 8.00 a.m. on 24 May 2024

Existing Shares marked "ex-rights" by the London Stock Exchange: 8.00 a.m. on 24 May 2024

( dividend "will be paid on 19 July 2024 to shareholders who are on the register of members at 7 June 2024" )

Latest time and date for acceptance, payment in full and registration of renunciation of Provisional Allotment Letters: 11:00 a.m. on 10 June 2024

"The New Shares, when issued and fully paid, will rank pari passu in all respects with the Existing Shares, save for the right to receive the recommended FY24 Final Dividend of 39.12 pence per Share which shall only be paid in respect of the Existing Shares."

My reading is that this dividend - as announced in the RNS will not be rebased, but subsequent dividends (yet to be announced) will be.

Quoting a quote form the HYP board:

We will continue our progressive dividend policy, maintaining the total level of dividend following the Rights Issue. Our aim is to grow Dividend Per Share ("DPS") in line with UK CPIH inflation in keeping with the current dividend policy. We will aim to increase the FY25 DPS by UK CPIH following the rebase of the FY24 DPS of 58.52 pence, after taking account of the new shares issued following the Rights Issue[1]


Estimated rebase of 15%, from approximately 53 pence being the FY24 DPS adjusted to take account of the bonus element of the Rights Issue as calculated using the closing middle-market price on 22 May 2024 (being the last business day before the announcement of the terms of the Rights Issue) of 1,127.5 pence per Share, adjusted for the recommended final dividend for FY24 of 39.12 pence per Share.

[Gerry557]

It looks like a dividend cut, sorry rebase too. Will have to check the details later.

No dividend cut here, not if one considers the full year. On the contrary, the dividend has increased year-on-year for many years.

Year End  | Dividend | 1 Year | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-24 | 58.5200  |  5.56% |   5.98% |   4.33% |    3.37% |    5.57%
31-Mar-23 | 55.4400  |  8.77% |   4.51% |   3.84% |    3.10% |    6.03%
31-Mar-22 | 50.9700  |  3.68% |   2.49% |   2.86% |    2.64% |    5.95%
31-Mar-21 | 49.1600  |  1.21% |   2.29% |   2.55% |    3.06% |    6.09%
31-Mar-20 | 48.5700  |  2.60% |   3.14% |   2.53% |    2.35% |    6.44%
31-Mar-19 | 47.3400  |  3.07% |   2.99% |   2.41% |    2.88% |    6.65%
31-Mar-18 | 45.9300  |  3.75% |   2.32% |   2.37% |    3.36% |    6.91%
31-Mar-17 | 44.2700  |  2.15% |   1.75% |   2.42% |    4.43% |    7.38%
31-Mar-16 | 43.3400  |  1.10% |   1.99% |   3.57% |    5.20% |         
31-Mar-15 | 42.8700  |  2.00% |   2.96% |   2.18% |    6.11% |         
31-Mar-14 | 42.0300  |  2.89% |   4.94% |   3.35% |    7.83% |         
31-Mar-13 | 40.8500  |  4.00% |   2.00% |   4.36% |    9.04% |         
31-Mar-12 | 39.2800  |  8.00% |   3.29% |   6.48% |    9.37% |         
31-Mar-11 | 36.3700  | -5.51% |   3.29% |   6.86% |    9.20% |         
31-Mar-10 | 38.4900  |  8.00% |  10.28% |  10.18% |   10.69% |         
31-Mar-09 | 35.6400  |  8.00% |  10.94% |  12.50% |   10.55% |         
31-Mar-08 | 33.0000  | 14.98% |  11.67% |  13.92% |   10.58% |         
31-Mar-07 | 28.7000  |  9.96% |  13.21% |  12.34% |   10.41% |         
31-Mar-06 | 26.1000  | 10.13% |  14.91% |  11.60% |          |         
31-Mar-05 | 23.7000  | 19.82% |  13.90% |  11.20% |          |         
31-Mar-04 | 19.7800  | 15.00% |   9.46% |   8.64% |          |         

Only one glitch in 20+ years, which was more than put right the very next year.

Enjoy!


Ian

Im not looking at the history , which has been ok but next year when it will be lower as told by themselves. I havent done the maths on the effect of taking up the placing or not. Obviously you will be diluted if you dont take it up but need to check if taking up the option, how that affects the overall levels of dividend.

[IanTHughes]

No dividend cut here, not if one considers the full year. On the contrary, the dividend has increased year-on-year for many years.

Only one glitch in 20+ years, which was more than put right the very next year.

Yes but that is history. They have announced a deeply discounted rights issue and are saying they will maintain the dividend at its present level in total cash terms, so that will amount to a future rebasing of the dividend (by about 15% if I recall correctly) when that dividend is spread over the increased number of shares.

Yes, I am well aware of that. Indeed, I am currently checking whether I might exercise the rights or not - probably not.

I was merely responding to a post which posed the possibility that the dividend just announced was a cut.The final was lower than last year, but the annual dividend was increased.

Enjoy!


Ian

[EthicsGradient]

I'm not sure what "Estimated rebase of 15%" means, but the "53 pence" seems to come from:

price of old shares: 1,127.5p
price of New shares: 645p
Holding if you had 24 old shares and take up the rights: 31 shares obtained at 24*1127.5 + 7*645 = 31575p = 1018.55p/share
full year dividend of 58.52p readjusted by 1018.55/1127.5 = 52.86p

So they seem to be saying they'll aim to keep the same yield, if you take up the rights - since the new shares come at a discount, the dividend in pence per share will be lower, but not by the 7/31 ratio.