Full Year Results.
Record investment, delivering for our customers and communities
London | 18 May 2023: National Grid, a leading energy transmission and distribution company, today announces its Full Year results for the period ended 31 March 2023.
John Pettigrew, Chief Executive, said:
"This has been another year of significant progress and strategic change for National Grid with good results demonstrating excellent execution against our key priorities. A record £7.7 billion has been invested in building clean, smart energy infrastructure and maintaining world class reliability across our networks. We've supported our communities, announcing the early return of £100 million of interconnector revenues today on top of £200 million we've already committed to return, whilst giving a further £65 million to our most vulnerable customers. A further £236 million of operating cost efficiencies during the year has helped to mitigate the impact of high energy prices.
As we look to the future, there has never been a more exciting time to be at the heart of the energy industry. The strategic pivot we announced in 2021 is now complete, enhancing our critical role at the heart of the energy transition. The visibility of growth has been strengthened by the new five-year RIIO-ED2 price control, $3.8 billion of additional longer-term investment for our US business to drive greater connection and delivery of clean power, and Ofgem's recent decision to award us 17 major transmission projects to enable greater levels of offshore wind connection in the UK.
The opportunities for future growth are considerable, and we will continue to work closely with governments and regulators to drive the energy transition forward, achieving positive change for our communities and consumers, and a clean, fair and affordable energy future for all."
Highlights
Successful completion of our strategic pivot
Last year, National Grid completed the strategic repositioning of its portfolio:
■ Completed the £3.1 billion sale of the Narragansett Electric Company (NECO) to PPL Corporation in May 2022.
■ Completed the sale of a 60% stake in UK Gas Transmission and Metering (UK Gas Transmission) to a consortium led by Macquarie Asset Management and British Columbia Investment Management Corporation in January 2023.
Financial delivery
■ Underlying operating profit of £4.6 billion was up 15% at actual exchange rates (10% at constant currency). This reflects a full year contribution from UK Electricity Distribution; good operational performance across our US regulated businesses; higher contribution from National Grid Ventures (NGV); and increased property sales; partly offset by a shorter period of NECO ownership (two months), and our community support package.
■ Statutory operating profit for continuing operations was up 12% to £4.9 billion, benefiting from the gain on sale of NECO and our Millennium investment, insurance recoveries following the IFA fire, partly offset by adverse commodity remeasurements. Consequently, statutory EPS for continuing operations was up by 22% compared to the prior year.
■ Underlying earnings per share (EPS) was up by 7% compared to the prior year at actual exchange rates (3% at constant currency), driven by the above reasons impacting underlying operating profit, offset by higher interest costs.
■ Recommended final dividend of 37.60p to bring full year dividend to 55.44p, up 8.77% and in line with policy.
And later;
Dividends.
The Directors are proposing a final dividend for the year ended 31 March 2023 of 37.60p per share that would absorb approximately £1,383 million of shareholders' equity (assuming all amounts are settled in cash). It will be paid on 18 August 2023 to shareholders who are on the register of members at 4 June 2023 (subject to shareholders' approval at the AGM). A scrip dividend will be offered as an alternative.
https://www.investegate.co.uk/announcement/7531918Ian.