In This Article:
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Revenue: Underlying operating profit increased by 12% to GBP5.4 billion at constant currency.
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Capital Investment: Record capital investment of GBP9.8 billion, 20% higher than last year.
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Underlying Earnings Per Share (EPS): Increased by 2% to 73.3p, slightly ahead of guidance.
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Dividend: Final dividend declared at 30.88p per share, total dividend for the year at 46.72p, a 3.21% increase.
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Return on Equity (UK Electricity Transmission): 8.3%, outperforming its allowed return by 100 basis points.
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Return on Equity (UK Electricity Distribution): 7.9%, impacted by Storm Darragh costs and lower-than-anticipated allowances.
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Return on Equity (US New York): 8.7%, 94% of allowed, 20 basis points higher than the prior year.
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Return on Equity (US New England): 9.1%, 92% of allowed.
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Net Debt: Reduced by GBP1.7 billion to GBP41.4 billion.
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Cash Flow: Cash generated from continuing operations was GBP7 billion, down 4% compared to the prior year.
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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National Grid PLC (NYSE:NGG) delivered a record capital investment of GBP9.8 billion, which is 20% higher than the previous year.
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The company achieved a 12% increase in underlying operating profit, reaching GBP5.4 billion at constant currency.
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National Grid PLC (NYSE:NGG) has secured supply chain and delivery mechanisms for more than two-thirds of its GBP60 billion capital investment plan.
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The company reported a strong return on equity of 8.3% in UK electricity transmission, outperforming its allowed return by 100 basis points.
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National Grid PLC (NYSE:NGG) has a comprehensive financing strategy in place, including a GBP7 billion equity raise, providing funding clarity until at least 2031.
Negative Points
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The company faced challenges with the Eastern Green Links 1 project, which is 16 months delayed, potentially leading to penalties from Ofgem.
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National Grid PLC (NYSE:NGG) experienced a lower-than-expected return on equity in UK electricity distribution due to storm impacts and real price effects.
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The company recorded an accounting impairment of GBP303 million for its community offshore wind joint venture due to policy uncertainty.
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There are ongoing affordability pressures in the US, particularly in Massachusetts, where high commodity prices have impacted gas customers.
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National Grid PLC (NYSE:NGG) faces potential risks from higher tariffs in the US, although the impact is mitigated by a largely domestic supply chain.