Coronavirus Update

National Grid Plc - Final Results

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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."