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Dod101 wrote:
SSE has today published an RNS addressing the same decision by Ofgem and maybe the two should be read together
Dod
idpickering wrote:Dod101 wrote:
SSE has today published an RNS addressing the same decision by Ofgem and maybe the two should be read together
Dod
I did think about that aspect when I posted both this morning. I hold both shares, but others may not do so, so might’ve missed this.
Ian.
The following supplementary prospectus has been approved by the Financial Conduct Authority and is available for viewing:
The Supplementary Prospectus dated 4 January 2023 (the "SupplementaryProspectus") supplementing the prospectus dated 11 August 2022 (the "Prospectus") for the National Grid plc and National Grid Electricity Transmission plc Euro 20,000,000,000 Euro Medium Term Note Programme.
The Supplementary Prospectus should be read and construed in conjunction with the Prospectus.
To view the full Supplementary Prospectus, please paste the following URL into the address bar of your browser:
http://www.rns-pdf.londonstockexchange. ... 23-1-4.pdf
A copy of the Supplementary Prospectus has been submitted to the National Storage Mechanism and will shortly be available to the public for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
National Grid confirms that an application has been made to the Financial Conduct Authority for ordinary shares to be admitted to the Official List, and to the London Stock Exchange for 16,012,646 ordinary shares to be admitted to trading, in relation to the operation of the Scrip Dividend Scheme for the 2022/23 interim dividend, payable on 11 January 2023. Dealings are expected to commence on 11 January 2023 and the shares will rank pari passu with the existing issued ordinary shares of the Company.
In accordance with the terms of the scrip dividend, 15,538,336 ordinary shares are to be issued at a price of 1014.90 pence per share. In accordance with the terms of the scrip dividend for US holders of American Depositary Receipts ('ADRs'), 94,862 ADRs (each representing 5 ordinary shares) are to be issued at a price of US$61.0513, representing 474,310 ordinary shares (including fractional entitlements).
The current terms and conditions of the scrip dividend scheme are available in the Investors section on the Company's website and from Equiniti on 0800 169 7775 or help.shareview.co.uk .
National Grid plc is pleased to announce that it has today completed the sale of a 60% equity interest in its UK gas transmission and metering business to a consortium comprised of Macquarie Asset Management and British Columbia Investment Management Corporation.
National Grid plc confirms that it has accepted all of the RIIO-ED2 price control arrangements proposed by Ofgem in its Final Determination, which covers our National Grid Electricity Distribution businesses for the period April 2023 to March 2028.
These price controls will further accelerate our delivery of smart, decarbonised electricity distribution networks in the UK, at the lowest cost to customers. They also form an important part of the group's wider financial framework, with up to £40bn of investment from 2021-26, as we continue the journey towards net zero, and a clean, fair and affordable energy future.
We look forward to providing more detail around our delivery of these price controls in the summer.
Overall, the Group's performance is in line with our expectations. As set out at half year results, we continue to expect underlying EPS growth for FY2022/23 in the middle of our 6-8% CAGR growth range.
Though not expected to impact FY2022/23 results, the UK Government's introduction of 'full expensing' tax relief for capital expenditure from 1 April 2023 to 31 March 2026, whilst economically neutral to National Grid, is expected to impact underlying earnings from FY2024-26.
Expected lower cash tax payable will result in reduced revenues in UK Electricity Transmission and UK Electricity Distribution, resulting in a broadly neutral cash position. However, these impacts, alongside a corresponding increase in IFRS deferred tax liabilities, will result in a net adverse impact to statutory and underlying earnings.
Taking this into account, the Group still expects to deliver underlying EPS growth of 6-8% CAGR across the five-year period from FY2022-26, but this is now expected to be towards the lower end of this range. Further updates will be provided with our detailed FY2023/24 guidance as part of full year results.
Finally, following the start of the RIIO-ED2 regulatory period on 1 April 2023, we will be hosting an investor event in London on 6 July 2023 showcasing our National Grid Electricity Distribution businesses.
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.
National Grid is hosting an investor event in London today focusing on its UK Electricity Distribution business.
Following the acquisition of Western Power Distribution two years ago, UK Electricity Distribution accounts for 20% of the Group's regulated assets. Under the recently agreed RIIO-ED2 5-year price control, capital investment is expected to be £7.5 billion, an increase of over 30% in annual investment compared to RIIO-ED1. This green investment1 will connect significant new renewable generation capacity, enable up to 1.5 million electric vehicle chargers and up to 600,000 heat pumps, whilst ensuring our networks remain resilient and reliable.
With electricity demand in the UK anticipated to double by 2050, our networks play a critical role at the heart of the energy transition, and this will continue to drive growth opportunities throughout this decade and beyond.
Following an introduction from John Pettigrew, Chief Executive, the session will be led by Cordi O'Hara, National Grid Electricity Distribution President, together with senior members of her leadership team. Copies of the presentations and a video recording will be available on National Grid's investor website on Monday 10 July 2023.
National Grid has agreed to sell a further 20% equity interest (the "Further Interest") in its UK gas transmission and metering business ("National Gas") to the existing majority owners, a consortium of long-term infrastructure investors led by Macquarie Asset Management (the "Consortium").
The Further Interest is on equivalent financial terms to the original 60% transaction, which was completed in January 2023. Completion of the Further Interest is subject to a regulatory condition but subject to such clearance, National Grid expects that the sale will complete in the second half of calendar year 2023.
National Grid further confirms that it has entered into a new option agreement with the Consortium for the potential sale of the remaining 20% shareholding in National Gas (the "Remaining Interest"). The Consortium has the option, exercisable between 1 May 2024 and 31 July 2024, to acquire all or part of the Remaining Interest. If the option for the Remaining Interest is partially exercised by the Consortium, National Grid will have the right to put the remainder of its equity interest in National Gas to the Consortium, which can be exercised by National Grid between 1 December 2024 and 31 December 2024.
If one or both of these options are exercised, the consideration for the Remaining Interest is expected to be paid in cash to National Grid on equivalent financial terms to the original 60% transaction, subject to certain adjustments.
John Pettigrew, Chief Executive of National Grid, said: "We're pleased to reach the next milestone in this process, and we"ll continue to work closely with the Consortium."
Martin Bradley, European Head of Infrastructure for Macquarie Asset Management, said: "This additional investment underlines our commitment to National Gas and the critical role it plays in the UK's energy system. We have been working closely with the National Gas team since January as they have continued to meet the energy needs of millions of households and businesses. We are pleased to continue our strong relationship with National Grid, and aspire to acquire the Remaining Interest in due course."
Following completion of the sale of the Further Interest in National Gas, National Grid intends to use total proceeds of approximately £0.7 billion towards general corporate purposes including repayment of debt. For the purposes of Listing Rule 10.4, National Gas's gross assets as at 31 January 2023 were £6.4 billion. For the period 1 April 2021 to 31 March 2022, the National Gas group generated profit before tax of £320 million. The benefits expected to accrue to National Grid as a result of the new set of arrangements remain as set out in the original transaction announcement dated 27 March 2022.
Dod101 wrote:This sounds like good news for National Grid but I hope that the regulator is keeping close tabs on the new National Gas owners led by McQuarrie. They were the owners that wrecked the finances of Thames Water. Anyway, national Grid seem determined to get out of the gas business and I suppose that allows them to concentrate on their main business, electricity.
Dod
Gerry557 wrote:I suspect that after becoming ex divi there is less support.... For a while. Interest rates rising also doesn't help, again in the run up and today on actual news. There are a bit bond like.
Additionally the markets also suffered when the US debt was downgraded.
Still above recent lows of 850s
National Grid confirms that an application has been made to the Financial Conduct Authority for ordinary shares to be admitted to the Official List, and to the London Stock Exchange for 5,289,281 ordinary shares to be admitted to trading, in relation to the operation of the Scrip Dividend Scheme for the 2022/23 final dividend, payable on 9 August 2023. Dealings are expected to commence on 9 August 2023 and the shares will rank pari passu with the existing issued ordinary shares of the Company.
In accordance with the terms of the scrip dividend, 4,622,521 ordinary shares are to be issued at a price of 1059.00 pence per share. In accordance with the terms of the scrip dividend for US holders of American Depositary Receipts ('ADRs'), 133,352 ADRs (each representing 5 ordinary shares) are to be issued at a price of US$65.9534, representing 666,760 ordinary shares (including fractional entitlements).
The current terms and conditions of the scrip dividend scheme are available in the Investors section on the Company's website and from Equiniti on 0800 169 7775 or help.shareview.co.uk.
National Grid today issues a pre-close update in respect of the half year ending 30 September 2023. Overall, the group continues to perform in line with our expectations, and we expect underlying EPS to have a greater weighting to the second half.
We expect HY24 operating profit weightings across the group to be more reflective of historic periods than HY23. For our UK regulated businesses, we expect contributions to operating profit to be broadly evenly split across the year. For our US regulated businesses, we expect contributions to be more heavily weighted towards the second half. Our New York business is expected to deliver 10-15% of its full year operating profit in the first half, given a higher non-cash environmental provision charge. We expect a broadly even split of operating profit between the first and second half in National Grid Ventures and Other.
Half year results will be announced on Thursday 9 November 2023.
Highlights
Solid financial delivery across the half year
■ Solid underlying operating profit on a continuing basis of £1.8 billion. Whilst this performance is in line with expectations, non-recurring items reported in 2022/23 explain why underlying operating profit is down 15% at actual exchange rates (14% at constant currency) versus the prior period. These items in the prior half year included: St William property land sales (£201 million); a two month contribution from the Narragansett Electric Company (NECO) (£53 million); and insurance proceeds received at our IFA1 interconnector following a fire in September 2021 (£70 million). Underlying EPS for continuing operations of 23.8p, down from 32.4p in the prior period, in line with our expectation of underlying EPS to have a greater weighting to the second half.
■ Statutory operating profit down 11% to £2.0 billion, driven principally by gains on NECO and St William land sales in the prior period, partly offset by favourable timing. Statutory EPS of 28.8p, down from 33.4p in the prior period.
■ Interim dividend of 19.40p/ordinary share* in line with policy (17.84p/ordinary share in the prior period).
And later;
The Directors are proposing an interim dividend of 19.40 pence per share to be paid in respect of the year ending 31 March 2024. This would absorb approximately £716 million of shareholders' equity.
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