National Grid FY Profit Up, Lifts Dividend; Sees Broadly Flat Earnings Next Year; Backs 5-year View

(RTTNews) - National Grid plc (NG.L, NGG), an energy transmission and distribution company, reported Thursday that full- year profit before tax surged 107 percent to 3.44 billion pounds from last year's 1.66 billion pounds.

Earnings per share were 60.6 pence, up 64 percent from 37 pence a year ago.

Underlying profit before tax was 3.05 billion pounds, compared to 1.89 billion pounds a year ago. Underlying earnings per share were 65.3 pence, compared to 42.4 pence a year ago.

Operating profit grew 82 percent from last year to 4.37 billion pounds. Underlying operating profit of 4.0 billion pounds was up 11 percent on a pro forma basis.

Further, the Board has recommended an increase in the final dividend to 33.76p per ordinary share or $2.0929 per American Depository Share, which will be paid on August 17 to shareholders on the register of members as at June 6.

If approved, this will bring the full-year dividend to 50.97p per ordinary share, an increase of 3.7 percent from last year.

Further, the company maintained financial outlook over the five year period 2020/21 to 2025/26.

Looking ahead for fiscal 2023, the company expects earnings to be broadly flat following strong earnings growth in the first full year of the plan.

The company said, "From 2020/21 through to 2025/26, we expect our CAGR in earnings per share to be in the 5-7 percent range from the baseline 54.2 pence per share1. This includes our long run average scrip uptake of 25 percent per annum, which will underpin our sustainable, progressive dividend policy into the future. Following strong earnings growth in the first full year of the plan, we expect earnings for 2022/23 to be broadly flat on 2021/22. We expect the future earnings through to 2025/26 to remain within our five-year framework."

Separately, National Grid announced the appointment of Iain Mackay as a Non-executive Director of the Board with effect from July 11. On appointment, Mackay will be a member of the Audit & Risk Committee and Remuneration Committee.

He is currently Chief Financial Officer at GSK plc.