National Grid Expects Flat Fiscal Year 2023 Earnings After Fiscal Year 2022's Strong Growth -- Update

By Jaime Llinares Taboada

National Grid PLC on Thursday forecast flat earnings for fiscal 2023 and reported an improved profit for fiscal 2022.

The FTSE 100 company expects broadly flat earnings for the 12 months ending March 31, 2023, following strong growth in the previous year.

The company also reiterated its financial outlook for the five-year period through to fiscal 2026, which includes cumulative capital expenditure of 30 billion pounds-35 billion pounds ($37.03 billion-$43.20 billion), with a compound annual asset growth rate of 6%-8% and underlying earnings-per-share growth of 5%-7%.

The U.K. energy infrastructure group made a pretax profit from continuing operations--excluding UK Gas Transmission--of GBP3.44 billion in fiscal 2022, more than doubling from GBP1.66 billion a year earlier.

Underlying operating profit rose 49% to GBP3.99 billion, beating the market consensus of GBP3.85 billion, which was provided by the company and was the average of 11 analysts' estimates. This was largely driven by the acquisition of Western Power Distribution, which contributed GBP887 million since the deal was completed in June.

"Our purchase of WPD has pivoted our business to a much greater focus on electricity infrastructure, putting us at the heart of delivering the energy transition," Chief Executive John Pettigrew said.

Adjusting for the acquisition of WPD, pro-forma underlying operating profit grew 11% on year, the company said. This reflected higher revenue from UK Electricity Transmission and Massachusetts Gas, the first year of operation of the IFA2 and North Sea Link power interconnectors, gains on investments in National Grid Partners, and the impact from the coronavirus in fiscal 2021.

Capital investments rose to a record of GBP6.7 billion as pandemic restrictions eased, with higher investments in UK ET and in the New York offshore wind joint venture, and also on the back of the acquisition of WPD, the company said.

National Grid declared a final dividend of 33.76 pence a share, bringing the full-year payment to 50.97 pence, up from 49.16 pence a year earlier. The group's dividends are linked to a U.K. inflation index.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

May 19, 2022 03:12 ET (07:12 GMT)

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