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National Grid (NG.)

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TheMotorcycleBoy
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Re: National Grid (NG.)

#390870

Postby TheMotorcycleBoy » February 28th, 2021, 11:51 am

monabri wrote:Another 29 million shares issued to add to the current ~3500 million ordinary shares. Doesn't this just mean a slight dilution in one's holding?

I guess so. By 0.8% I suppose.

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Re: National Grid (NG.)

#390872

Postby Dod101 » February 28th, 2021, 11:54 am

monabri wrote:Another 29 million shares issued to add to the current ~3500 million ordinary shares. Doesn't this just mean a slight dilution in one's holding?


As TMCB tells us it is a very small percentage and of course it saves the company some cash. But it does mean a modest dilution.

Dod

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Re: National Grid (NG.)

#390876

Postby dealtn » February 28th, 2021, 12:10 pm

TheMotorcycleBoy wrote:
idpickering wrote:Scrip Dividend

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 Main Market of the London Stock Exchange for 28,755,898 ordinary shares to be admitted to trading, in relation to the operation of the Scrip Dividend Scheme for the 2020/21 interim dividend, payable on 13 January 2021. Dealings are expected to commence on 13 January 2021 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, 28,755,898 ordinary shares are to be issued at a price of 864.44 pence per share. In accordance with the terms of the scrip dividend for US holders of American Depositary Receipts ('ADRs'), 83,657 ADRs (each representing 5 ordinary shares) are to be issued at a price of US$57.7160, representing 418,285 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 .


https://www.investegate.co.uk/national- ... 00062464L/

Sorry I'm a bit late in parsing this. Work has been hectic of late, and I'm having a quick run through of the recent RNSs of all firms in Mel and my portfolio.

What exactly does this mean for a UK owner of a few NG. shares held in an ISA? Will I receive extra shares instead of a dividend?

thanks Matt


Nothing.

You could have elected to receive additional shares instead of cash. Presumably you didn't. Some did, hence the RNS giving details of the amount of shares to be issued (and a subsequent RNS to confirm the new total).

This all happened on 13th January, with respect to the Interim Dividend for 2020, announced on 12th November, which went xd on 26th November.

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Re: National Grid (NG.)

#390938

Postby Bouleversee » February 28th, 2021, 5:49 pm

I passed on that, too, and at today's lower price (assuming you divide the dividend by the share price to get the number of shares you would have received and assuming my maths are correct, not necessarily guaranteed) I am better off even after 7.5% tax with the dividend on my non-ISA holding and even more so with the ISA one, though that could change tomorrow of course. I am not very enthused by NG at the moment and don't think they are worth transferring to the ISA. I might just sell those and keep the cash. I'm not even sure that the ISA holding is worth keeping. Anyone else have a better idea of where they are going?

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Re: National Grid (NG.)

#391351

Postby idpickering » March 2nd, 2021, 7:19 am

Decision on Ofgem's RIIO-2 FD and Dividend update

National Grid today confirms that, following a detailed analysis of Ofgem's RIIO-2 Final Determination, we are accepting the overall package for the Electricity System Operator, and broadly accepting most of the package for the Electricity and Gas Transmission businesses. Whilst we welcome the significant movement in total expenditure ("totex") allowances and greater flexibility around future net zero investment for Electricity and Gas Transmission, we will be submitting a technical appeal to the Competition and Markets Authority (CMA) regarding Ofgem's proposed cost of equity and outperformance wedge.

The Board has reviewed the Group's dividend policy in light of this decision, and is announcing that from FY2021/22 onwards, the policy will aim to deliver annual dividend per share growth in line with UK CPIH inflation. The Board reaffirms the current dividend policy for FY2020/21, with growth at least in line with RPI.


https://www.investegate.co.uk/national- ... 00037813Q/

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Re: National Grid (NG.)

#395728

Postby idpickering » March 15th, 2021, 12:23 pm

Climate transition action plan shareholder vote

The National Grid Board today announces its intention to put its climate transition plan before shareholders and seek a non-binding advisory vote on the Company's climate change-related 'net zero' commitment[1] and associated target[2], and its action plan to achieve its interim 2030 net zero target.

The action plan will set out the Company's commitment to becoming a net zero business in its Scope 1 and 2 greenhouse gas emissions by 2050 or sooner, its Scope 3 reduction target (in a manner consistent with the Task Force on Climate-related Financial Disclosures (TCFD)) and to transition our business to align with the goals of the Paris Agreement.

As a Principal Partner to the UK Government for COP 26 National Grid is fully committed to its role in tackling climate change, and as a responsible company, for our people and the communities that we serve. We embrace the opportunity to play our role in helping achieve these challenging goals building on the launch of our Responsible Business Charter published in October 2020 and our recent ESG virtual event on the Future of Gas.


Full item here;

https://www.investegate.co.uk/national- ... 00051843S/

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Re: National Grid (NG.)

#396597

Postby idpickering » March 18th, 2021, 7:14 am

Proposed WPD acquisition & portfolio repositioning

National Grid plc ("National Grid" and together with its subsidiary undertakings, the "Group") today announces that it has agreed to acquire PPL WPD Investments Limited (together with its subsidiary undertakings, the ("WPD Group")), the holding company of Western Power Distribution ("WPD"), the UK's largest electricity distribution business, from PPL WPD Limited, a subsidiary of PPL Corporation ("PPL") (the "WPD Acquisition") for an equity value of £7.8 billion and National Grid has agreed to sell The Narragansett Electric Company ("NECO") to PPL Energy Holdings, LLC, also a subsidiary of PPL, for an equity value of US$3.8 billion (£2.7 billion) (the "NECO Sale", and together with the WPD Acquisition, the "Transactions").

In addition, National Grid announces that it will commence a process later this year for the sale of a majority stake in National Grid Gas plc, the owner of the national gas transmission system ("NGG") (the "NGG Sale").

Together these transactions will:

·strategically pivot National Grid's UK portfolio towards electricity. The proportion of the Group's assets in electricity will increase from c.60% to c.70%;

·strengthen National Grid's long-term growth outlook by ensuring a significant scale position in electricity distribution through the acquisition of WPD, the UK's largest electricity distribution business. Electricity distribution is expected to see a high level of asset growth as a result of the ongoing energy transition;

· significantly enhance National Grid's central role in the delivery of the UK's net zero targets, given the complementary nature of transmission and distribution, providing benefits for customers;

·deliver shareholder value as the transactions are expected to be significantly earnings accretive from year one, generate a return in excess of National Grid's cost of capital and, taken together with the proposed NGG Sale, continue to be earnings accretive in the longer term;

· underpin National Grid's 5 to 7% asset growth target for longer, further supporting National Grid's updated dividend policy to deliver annual dividend per share growth in line with UK CPIH inflation, while expecting to maintain its current overall strong investment grade credit rating;

·maintain the Group's geographic and regulatory diversity, with c.40% of the Group assets in the US after the sales of NECO and stake in NGG;

· generate attractive shareholder value through the sales of NECO and a majority stake in NGG; and

·ensure management continuity and focus: the CEO and CFO of WPD will lead the UK distribution business as part of the enlarged Group. National Grid, recognising the importance of WPD to the communities it serves, intends to maintain the WPD headquarters in Bristol and offices in other key locations.

Completion of the WPD Acquisition, which will be funded by fully committed bridge facilities, is expected to occur within the next four months and completion of the NECO Sale is expected to occur before the end of the first quarter of 2022. National Grid expects to launch the sale process for NGG in the second half of this year and complete the sale approximately a year later.


https://www.investegate.co.uk/national- ... 00066406S/

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Re: National Grid (NG.)

#396603

Postby Dod101 » March 18th, 2021, 7:42 am

So selling their Rhode Island electricity company, and buying a UK electricity distribution business and then selling most of the UK gas distribution business. That is the plan anyway if I have read it correctly. I wonder if that is a good idea? Quite a hefty spend and SSE just sold their electricity distribution business.

Gas has obviously, like coal, become the ugly duckling. Shame really because although I do not use it, it is convenient and likely to be around for quite some time yet and it has added diversity. It is not as if it is going to disappear in the name of climate change; just get a different owner.

Dod

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Re: National Grid (NG.)

#396621

Postby 77ss » March 18th, 2021, 8:43 am

Dod101 wrote:So selling their Rhode Island electricity company, and buying a UK electricity distribution business and then selling most of the UK gas distribution business. That is the plan anyway if I have read it correctly. I wonder if that is a good idea? Quite a hefty spend and SSE just sold their electricity distribution business.....

Dod


I believe that SSE sold their household supply business. Not the distribution business (SSEN Distribution). A logical move, in my view.

Its an interesting move from NG. I have absolutely no idea whether or not it will turn out well, but I have to say that I have been mulling over the total disposal of NG which seems to have lost its way - glad I made a substantial top-slice last year.

The market doesn't seem to approve (down 2% as I write), but I shall assume (hope) that management knows what it is doing and hang in there now. I do however note the restated dividend policy - CPIH.

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Re: National Grid (NG.)

#396629

Postby Dod101 » March 18th, 2021, 9:14 am

77ss wrote:
Dod101 wrote:So selling their Rhode Island electricity company, and buying a UK electricity distribution business and then selling most of the UK gas distribution business. That is the plan anyway if I have read it correctly. I wonder if that is a good idea? Quite a hefty spend and SSE just sold their electricity distribution business.....

Dod


I believe that SSE sold their household supply business. Not the distribution business (SSEN Distribution). A logical move, in my view.

Its an interesting move from NG. I have absolutely no idea whether or not it will turn out well, but I have to say that I have been mulling over the total disposal of NG which seems to have lost its way - glad I made a substantial top-slice last year.

The market doesn't seem to approve (down 2% as I write), but I shall assume (hope) that management knows what it is doing and hang in there now. I do however note the restated dividend policy - CPIH.


That is true about SSE. I keep getting confused about the different terms they use. Thanks for the clarification.

Dod

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Re: National Grid (NG.)

#396641

Postby Dod101 » March 18th, 2021, 9:40 am

I am though struggling to find the 'restated dividend policy'.

I find it interesting that they (and I think SSE) are selling their gas distribution business in order to help them become carbon neutral, but that does not help climate change in the least. It helps them to burnish their credentials but gas usage is going to continue for some time yet. In fact, a neighbour of mine is just getting a gas boiler installed, having been using oil for many years. His oil fired boiler has packed up and since it was installed maybe 20 years ago, a gas mains has arrived outside of his house which he can tap into relatively cheaply.

Dod

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Re: National Grid (NG.)

#396684

Postby 77ss » March 18th, 2021, 10:52 am

Dod101 wrote:I am though struggling to find the 'restated dividend policy'.

.....

Dod


Its in the link Ian provided. CtrlF and CPIH. With a yield of nearly 6%, increases limited to CPIH are not the end of the world.

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Re: National Grid (NG.)

#396687

Postby Dod101 » March 18th, 2021, 11:01 am

77ss wrote:
Dod101 wrote:I am though struggling to find the 'restated dividend policy'.

.....

Dod


Its in the link Ian provided. CtrlF and CPIH. With a yield of nearly 6%, increases limited to CPIH are not the end of the world.


I saw that in the earlier post. I was looking at today's. Anyway no problem and as an income investor, I am happy to continue holding National Grid.

Dod

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Re: National Grid (NG.)

#396693

Postby richfool » March 18th, 2021, 11:11 am

NG's share price may be being influenced negatively because it's also buying Western Power Distribution, which will be funded with debt until the UK gas sale brings in the cash:
National Grid today declared it was exiting the gas market in a flurry of deals totalling £18 billion and marking one of the most dramatic UK corporate shifts towards “net zero” carbon, green energy yet.

In a move anticipating the flood of demand for electric vehicles and massive new supply of renewable energy, the Grid today said it was buying the UK’s largest electricity distributer, Western Power Distribution, from US energy giant PPL for £7.8 billion.

As part of that deal, in a form of part exchange, it is selling PPL its gas operation in the US’s Rhode Island for £2.7 billion.

Then, later in the year, it will sell its entire UK gas transmission business - including a 7630km pipe network across the UK - in a deal analysts suggest could net £7 billion to £8 billion.

At the end of the process, the proportion of its assets being electric will have moved from 60% to 70%.

Chief executive John Pettigrew said: “These transactions enhance our role in the progress towards net zerom underpinning our core ambition which is to enable the energy transition for all.

Until the UK gas sale brings in the cash, it will fund the Western Power acquisition with debt
.

https://uk.finance.yahoo.com/news/natio ... 43194.html

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Re: National Grid (NG.)

#398861

Postby idpickering » March 25th, 2021, 11:10 am

Chair Succession

Following the announcement on 10 September 2020 that Sir Peter Gershon would step down as Chair of the National Grid Board no later than the conclusion of the 2021 Annual General Meeting, National Grid today confirms that Sir Peter will step down from the Board with effect from 31 May 2021. Paula Rosput Reynolds, who joined the Board on 1 January 2021 as Non-executive Director and Chair Designate will assume the position of Chair with effect from the same date.


https://www.investegate.co.uk/national- ... 00014773T/

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Re: National Grid (NG.)

#400954

Postby Bouleversee » April 1st, 2021, 10:05 pm

77ss wrote:
Dod101 wrote:I am though struggling to find the 'restated dividend policy'.

.....

Dod


Its in the link Ian provided. CtrlF and CPIH. With a yield of nearly 6%, increases limited to CPIH are not the end of the world.


Except I don't think they are going to be allowed to pay 6% in future. I sold my non-ISA holding late afternoon after I'd woken up to the fact that today was going to be the last trading day before the end of the tax year. I had intended to buy back in the ISA but the following caught my eye on the research page of my IWeb ISA account: https://https://www.markets.iweb-shared ... 1&type=bsm. It seems to be saying that the maximum return on equity will only be allowed to be 4.4% but 4.4% of what since the s.p. goes up and down all the time? I decided I'd leave the question of repurchase until after Easter when hopefully I will be a bit less brain=fogged. After only 3 hours sleep last night, I am completely useless so I'm about to try to catch up. I'm not totally convinced that NG is the best place to invest my money at the moment though I don't know who would be a better choice. I'll have a few days to sleep on and think about it. Comments welcome.

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Re: National Grid (NG.)

#400970

Postby Dod101 » April 1st, 2021, 11:38 pm

Bouleversee wrote:
77ss wrote:
Dod101 wrote:I am though struggling to find the 'restated dividend policy'.

.....

Dod


Its in the link Ian provided. CtrlF and CPIH. With a yield of nearly 6%, increases limited to CPIH are not the end of the world.


Except I don't think they are going to be allowed to pay 6% in future. I sold my non-ISA holding late afternoon after I'd woken up to the fact that today was going to be the last trading day before the end of the tax year. I had intended to buy back in the ISA but the following caught my eye on the research page of my IWeb ISA account: https://https://www.markets.iweb-shared ... 1&type=bsm. It seems to be saying that the maximum return on equity will only be allowed to be 4.4% but 4.4% of what since the s.p. goes up and down all the time? I decided I'd leave the question of repurchase until after Easter when hopefully I will be a bit less brain=fogged. After only 3 hours sleep last night, I am completely useless so I'm about to try to catch up. I'm not totally convinced that NG is the best place to invest my money at the moment though I don't know who would be a better choice. I'll have a few days to sleep on and think about it. Comments welcome.


Hope you sleep well. But the share price and the dividend is what determines the 6% yield so it is not a question of their being 'allowed' to pay 6%.
The increases that is referred to is in the return on regulated UK assets I assume (I am writing this not having fully researched the earlier posts)

I hold National Grid and am happy to continue to do so. That is no reason for you to do so of course, but I feel happy enough with the way things are going.

Dod

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Re: National Grid (NG.)

#401075

Postby Bouleversee » April 2nd, 2021, 11:45 am

Dod101 wrote:
Bouleversee wrote:
77ss wrote:
Its in the link Ian provided. CtrlF and CPIH. With a yield of nearly 6%, increases limited to CPIH are not the end of the world.


Except I don't think they are going to be allowed to pay 6% in future. I sold my non-ISA holding late afternoon after I'd woken up to the fact that today was going to be the last trading day before the end of the tax year. I had intended to buy back in the ISA but the following caught my eye on the research page of my IWeb ISA account: https://https://www.markets.iweb-shared ... 1&type=bsm. It seems to be saying that the maximum return on equity will only be allowed to be 4.4% but 4.4% of what since the s.p. goes up and down all the time? I decided I'd leave the question of repurchase until after Easter when hopefully I will be a bit less brain=fogged. After only 3 hours sleep last night, I am completely useless so I'm about to try to catch up. I'm not totally convinced that NG is the best place to invest my money at the moment though I don't know who would be a better choice. I'll have a few days to sleep on and think about it. Comments welcome.


Hope you sleep well. But the share price and the dividend is what determines the 6% yield so it is not a question of their being 'allowed' to pay 6%.
The increases that is referred to is in the return on regulated UK assets I assume (I am writing this not having fully researched the earlier posts)

I hold National Grid and am happy to continue to do so. That is no reason for you to do so of course, but I feel happy enough with the way things are going.

Dod


I see the link I provided didn't work; sorry about that. Here is the actual text; I think the date was March 11:

Ofgem has cut returns for shareholders of UK local electricity networks by a third to keep prices low while requiring higher investment in greener energy.

National Grid

Source: Sharecast

The UK energy regulator said it would boost investment in local electricity grids to power electric cars, small-scale renewables, storage and cleaner forms of heating. Surface transport and domestic heating account for 34% of the UK's greenhouse gas emissions.

Under the new price control regime shareholders' return on equity from local electricity networks will be a maximum of 4.4% - a third lower than the previous price control. Ofgem said it had set the rates of return consistent with the average for EU regulators to keep the UK as an attractive investment.

Jonathan Brearley, Ofgem's chief executive, said: "We're driving local electricity networks to help make sure that every watt of energy produced from plant to plug is better used, for example by ramping up their use of battery storage, saving bills and the planet.

"At the same time, these financial arrangements will significantly cut investor returns to make sure consumers pay a fair price for energy whilst networks attract the investment they need to be safe and green."

I probably misunderstood it. Perhaps it means that NG and others can't make more than 4.4% profit, though that would be reflected in dividends presumably. Maybe, though it was on my NG page, it doesn't even apply to NG. Perhaps someone could translate for Grandma.

I have a (for me) quite large holding in SSE and don't have much of an urge to add to that, whereas my NG ISA holding is relatively small but I'm still dithering as to whether I want any more of this type of share at all. (Also have UU & Pennon). It does depend on the level of dividend and whether that is likely to come out of my capital. I seem to be making a small loss on my ISA NG though I did make a profit on the non-ISA holding I have just sold.

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Re: National Grid (NG.)

#401088

Postby tjh290633 » April 2nd, 2021, 12:02 pm

It may be helpful to reiterate the Company's comments following the OFGEM review:

Dividend Policy

The Board confirms that the dividend policy for the current year is unchanged.

After careful consideration, and reflecting the move from RPI to CPIH in our UK regulated businesses, the Board is announcing that, going forward from FY2021/22, it will aim to grow annual dividend per share in line with UK CPIH, thus maintaining the dividend per share in real terms. The Board will review this policy regularly, taking into account a range of factors including expected business performance and regulatory developments.

The scrip dividend alternative will continue to be offered, and we do not expect to buy back the scrip shares whilst we continue to deliver strong asset growth.


See https://www.investegate.co.uk/national- ... 00037813Q/

TJH

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Re: National Grid (NG.)

#401105

Postby Dod101 » April 2nd, 2021, 1:01 pm

It seems to me that it is not a matter of being allowed to pay a certain level of dividend it is a matter of not being able to owing to the reduction in returns on equity (by which I assume the regulator means capital invested in regulated assets). If as NG says, they are only going to grow the dividend by CPIH that is going to be very modest and is likely I imagine to stall the share price. The current trailing yield is around 5.6% and that seems a reasonable.

Not one to get excited about.

Dod


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