- Shares up 8% year-to-date
- Full year pre-tax profit up 20% to £3.65 billion
- Record capital investment of £9.84 billion in 2024/5
Shares in National Grid (NG) were up over 2% to £10.38 in morning trading as the transmission network operator reported a 20% rise in pre-tax profit to £3.65 billion for the year ending 31 March.
The FTSE 100 company's shares are up 8% year-to-date, recently touching a near three-year high.
The company said it had made ‘significant progress’ in the first year of its five-year financial framework with record capital investment of almost £10 billion.
CAPITAL INVESTMENT
Andy Agg, National Grid’s CFO told Shares that the company is on track to invest £60 billion in energy networks as part of its five-year financial framework (to 2029).
Agg highlighted the company’s UK electricity transmission and New York businesses which saw capital investment up 57% and 24% respectively.
Overall capital investment reached £9.84 billion in 2024/5.
In the UK six wave ASTI projects are now under construction and in New York the company is making upgrades to its upstate electricity transmission programme, which is on track to energise by December 2025.
EARNINGS BEAT
Underlying EPS (earnings per share) came in at 73.3p for the year to 31 March, up 2% and ahead of the 72.3p average analyst forecast helped by an improved performance in the group’s regulated businesses.
A final dividend of 30.88p has been recommended, resulting in a total dividend of 46.72p up 3.2% from a rebased dividend per share of 45.26p in line with the policy aim to increase with UK CPIH inflation.
However the total dividend is 20% below the 58.52p paid out in 2024.
Separately, the company reaffirmed the appointment of new CEO Zoë Yujnovich, formerly the integrated gas and upstream director at Shell (SHELL).
Yujnovich will start on 17 November after it was previously announced in May that John Pettigrew will retire after 10 years at the helm.
POWERS AHEAD
Russ Mould investment director at AJ Bell said: ‘The company is at a crucial point in its history, spending big money to help support the energy transition in the UK.
‘The responsibility for steering through this investment will fall to former Shell director Zoë Yujnovich when she takes over later this year.
‘The scale of spending means keeping everything on track will represent a significant challenge.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Martin Gamble) own shares in AJ Bell.
