National Grid profit jumps by a fifth despite record investment
National Grid’s annual profits rose by a fifth as it lauded stable growth against a backdrop of “international economic uncertainty.”
On an underlying basis, pre-tax profit increased 20 per cent to £3.7bn over the 12 months ended 31 March.
Earnings per share rose two per cent to 73.3p, ahead of previous guidance.
National Grid announced a total dividend of 46.72p for its shareholders, which include major institutional investors such as Blackrock and Vanguard.
“At a time of international economic uncertainty, National Grid continues to provide stable and predictable growth through our resilient business model,” outgoing chief executive John Pettigrew said in a statement.
“We remain focused on delivering secure, affordable and clean energy to our customers and communities, and providing long-term value and returns for our shareholders.”
Shares have risen around 4.6 per cent this year to date.
National Grid investment hits annual record
The company is in the midst of an unprecedented £60bn investment drive over the next five years as the UK edges towards a 2030 deadline for decarbonising the grid.
National Grid on Thursday said capital investment had increased 20 per cent to a record £9.8bn over the last year.
Some £23bn investment is expected in electricity transmission in the UK, where it is working on 17 critical renewable energy projects.
The company has earmarked tens of billions of pounds in spending over the coming years to upgrade the UK’s grid system. It recently raised £7bn via a share placing from investors to fund the growth and strengthen its balance sheet.
Supply chain and delivery mechanisms have already been secured for more than two thirds of its £60bn proposals, it added.
It was annnounced in May that the firm’s long-serving boss John Pettigrew will be replaced by Zoë Yujnovich, a former director at Shell, later this year.