National Grid Plc
Final Results
Business Highlights
• Business continuity plans successfully implemented in response to COVID-19
• Continued progress on 2050 net zero emissions target; achieved 70% reduction on 1990 baseline; new interim target to achieve 80% by 2030
• Record capital investment of £5.4bn leading to strong asset growth of 9%
• Published long-term gas options for New York
• Business plans submitted for RIIO-2
• Cost efficiency programmes delivered around £100m savings
• First renewable project commissioned through Geronimo since acquisition in July
Financial Performance
• Underlying operating profit up 1% to £3.5bn
• COVID-19 impact on earnings, primarily driven by a £117m increased provision for US bad debts
• Statutory operating profit down 3% to £2.8bn
• Underlying EPS down 1% to 58.2p reflecting improved regulated performance, offset by non-recurrence of prior year one-off benefits
• Statutory EPS of 36.8p, impacted by environmental provision, commodity remeasurements, and timing
• Group RoE of 11.7% (2019: 11.8%)
• Achieved 99% of allowed RoE in the US (9.3%)
• Recommended final dividend to bring full year dividend to 48.57p, up 2.6%, in line with policy
• FY21 outlook: assumed COVID-19 underlying operating profit impact of approximately £400m
|
Financial Summary Year ended 31 March – continuing operations |
||||||||||||||||
|
|
|
Statutory results |
|
Underlying [1] |
|
|||||||||||
|
|
|
2020 |
2019 |
% change |
|
2020 |
|
2019 |
% change |
|
||||||
|
Operating profit (£m) |
|
2,780 |
|
2,870 |
|
(3 |
)% |
|
3,454 |
|
|
3,427 |
|
1 |
% |
|
|
Profit before tax (£m) |
|
1,754 |
|
1,841 |
|
(5 |
)% |
|
2,493 |
|
|
2,474 |
|
1 |
% |
|
|
Earnings per share (p) |
|
36.8 |
44.3 |
(17 |
)% |
|
58.2 |
|
|
58.9 |
(1 |
)% |
|
|||
|
Capital investment (£m) |
|
5,405 |
|
4,506 |
|
20 |
% |
|
5,405 |
|
|
4,506 |
|
20 |
% |
|
3,461 million weighted average shares for 2019/20 (2018/19: 3,386 million).
John Pettigrew
Chief Executive
“We have successfully implemented our business continuity plans in response to the COVID-19 pandemic, ensuring the well-being of our staff and customers, whilst maintaining continuity of service. I am proud of our response and contribution to help our customers and communities through these challenging times.
National Grid made good progress in 2019/20. We maintained high levels of reliability across our networks and delivered good financial performance. Asset growth of 9% was underpinned by record investment of £5.4 billion. We achieved continued regulatory progress in the UK, responded proactively to the challenges in downstate New York, whilst further developing our interconnector and renewable portfolios.
Looking ahead, whilst COVID-19 will impact our financial performance in FY21, we expect this to be largely recoverable over future years and therefore anticipate no material economic impact on the Group in the long-term. We continue to target asset growth of 5-7% in the near term and with an efficient balance sheet that underpins asset and dividend growth, the Group is well positioned to create value for shareholders.”