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National Grid Plc - 2020/21 Full Year Results Statement

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Building a platform to lead the energy transition

London | 20 May 2021: 

National Grid, a leading energy transmission and distribution company, today announces its Full Year results for the period ending 31 March 2021.

John Pettigrew, Chief Executive, said:

"In the past year we have successfully navigated the challenges of COVID-19, delivered over £5 billion of capital investment and achieved a solid underlying financial performance. This is testament to the strength and resilience of our business model and the unwavering commitment of our employees.

We also announced the transformational acquisition of WPD which will ensure National Grid is at the heart of the energy transition in the UK and enhance the future growth profile of the Group. National Grid has an exciting future, with numerous opportunities in the UK and US to provide energy security and support the delivery of net zero. Our critical role in the energy sector, alongside our position as a principal partner at COP26, provides us with a unique opportunity to call for more ambitious action towards a clean energy future and a strong platform from which to generate value for all our stakeholders.

Our confidence in the Group's prospects is reflected in the ambitious five-year outlook for capital investment, asset growth and earnings, which we are announcing today."

Financial Summary

Year ended 31 March - continuing operations

 

 

Statutory results

 

Underlying[1]

 

 

 

2021

2020

% change

 

2021

 

2020

% change

 

Operating profit (£m)

 

2,895 

 

2,780 

 

%

 

3,283 

 

 

3,454 

 

(5)

%

 

Profit before tax (£m)

 

2,083 

 

1,754 

 

19 

%

 

2,407 

 

 

2,493 

 

(3)

%

 

Earnings per share (p)

 

46.6 

 

36.8 

 

27 

%

 

54.2 

 

 

58.2 

 

(7)

%

 

Dividend per share (p)

 

49.16 

 

48.57 

 

%

 

49.16 

 

 

48.57 

 

%

 

Capital investment (£m)

 

5,047 

 

5,405 

 

(7)

%

 

5,047 

 

 

5,405 

 

(7)

%

 

3,523 million weighted average shares for 2020/21 (2019/20: 3,461 million).

Highlights

  • Transactions progressing, WPD acquisition approved by shareholders - we expect WPD completion by July.
  • Regulatory milestones reached with the RIIO-2 Final Determination and Joint Proposal for KEDNY-KEDLI.
  • COP26 principal partner and new Scope 3 targets set for the Group.
  • Statutory operating profit up 4% to £2.9 billion principally driven by environmental exceptional charges made in the prior year, partly offset by increased under-recoveries and higher storm costs.
  • Solid financial performance with underlying operating profit down 5% to £3.3 billion primarily driven by the impact of COVID-19.
  • £5.0 billion of capex across the Group, including continued investment in UK and US critical infrastructure and the commissioning of IFA2 between the UK and France.
  • Recommended final dividend to bring full year dividend to 49.16p, up 1.2%, in line with policy.

Financial Outlook and Guidance

  • Financial outlook over the 5 year period 2020/21 to 2025/26:
  • Total cumulative capex of £30-£35 billion;
  • Asset growth CAGR[2] of 6-8% backed by strong balance sheet;
  • Driving underlying EPS CAGR of 5-7%;
  • Credit metrics to remain within current rating thresholds.
  • This guidance is based on the inclusion of WPD, the sale of NECO (Rhode Island) completing in Q1 of CY2022 and the sale of a majority stake of Gas Transmission being completed during FY2022/23.