National Grid Share Discussion Threads

[royalt] 27/5/2006 15:21

thanks enami. Still suprised theyve come back towards old highs so quickly, while the rest of the market is still in recovery mode.

Not that im complaining!

[enami] 26/5/2006 19:35

RoyalT - defensive qualities and good dividend. They don't produce anything and we all use the stuff they pump or plug into our homes.

[royalt] 26/5/2006 19:24

Whys it going up so much in the past few days?

[ivor whopper] 26/5/2006 14:47

looks like this will be testing new high again soon.

[tole] 25/5/2006 11:09

Nice to see the director have a few the other day too.


National Grid chairman John Parker buys 8,000 shares in co
05.23.2006, 12:41 PM
LONDON (AFX) - National Grid PLC said chairman Sir John Parker today purchased a further 8,000 shares in the company for 572.32 pence a share, taking his holding to 63,832 shares.


Also not forgetting ex-dividend in afortnight.

The Board has recommended a final dividend of 15.9p per ordinary share ($1.5115
per American Depository share (ADS)), representing a 10% increase in the
full-year dividend. This increase delivers dividend growth of more than 60%
since March 2002.

The final dividend is to be paid on 23 August 2006 to shareholders on the
register as at 9 June 2006.

We aim to continue to increase dividends per ordinary share expressed in
sterling by 7% in each financial year through to 31 March 2008.

[puffin1] 23/5/2006 11:48

Think i sold this to soon.still will keep a eye on it to re enter

[gateside] 22/5/2006 21:35

Don't pull that plug: there's plenty of juice left in National Grid

Questor says Hold

Being Britain's biggest utility is an expensive business. But National Grid's chief executive Roger Urwin seems to take the near-£20bn of debt the group now carries very much in his stride.

A good chunk of recent borrowings relate to agreements the company has signed to buy two US assets - KeySpan and Southern Union's gas distribution network in Rhode Island - and the assumption of their debts. But on the plus side these acquisitions will increase its US customer base fivefold to 3.4m, and enhance group earnings and cashflow in the first full year.



As he announced an 11pc rise in annual pre-tax profit to £1.9bn, Mr Urwin also laid out his future strategy that will see National Grid embark on a £12bn five-year investment plan.

Around £9bn of this money will be used to upgrade the UK's network of electricity pylons, gas pipelines and LNG (liquified natural gas) terminals, such as the facility at Milford Haven in South Wales, for which the utility is responsible.

National Grid also had good news to report on its wireless infrastructure arm. Operating profit was £75m, up from £42m, and in November the group announced it had extended its contract with the BBC to deliver analogue television and radio services to 2012 for television and 2013 for AM and FM radio. It also owns digital broadcast capacity. Mr Urwin said this wing of the business is set for continued double-digit profit growth.

When Questor flagged National Grid shares back in November they were trading at 538p and selling off a forward earnings multiple of 12. National Grid's shares closed up 10 at 569p on the results, trading at around 11.7 times earnings forecasts for the new financial year compared with a sector average of 14. The shares are a firm hold with the prospect of a progressive dividend yield as well as capital growth.

[utsushi] 18/5/2006 08:02

Very solid results, can see 10% + growth for the foreseeable future..nice yield...high visibility..

[spob] 18/5/2006 06:58

LONDON (AFX) - National Grid PLC reported full-year earnings which beat
market expectations and committed to a programme of investment in existing
businesses which amounts to more than 12 bln stg over the next five years.
National Grid said this investment programme, together with its announced
strategic acquisitions, will reshape and expand its growth platform.
Pretax profit for the year to end March came in at 1.924 bln stg, up from
1.74 bln stg the previous year. Analysts' forecasts had ranged between 1.872 bln
stg and 1.902 bln stg.
The group said investment in its existing businesses will be a "significant
contributor to future growth".
It has increased investment this year by 36 pct to 2.1 bln stg and now
projects a further rise to around 2.5 bln stg per annum, totaling around 12 bln
stg in the five years to March 2011.
9 bln stg of this investment is expected to be in UK regulated
infrastructure, primarily in response to changes in UK energy infrastructure
requirements with the decline of North Sea gas production, the UK government's
renewable energy policy, and the need for asset replacement.
During the same period, National Grid said its UK regulatory asset base is
projected to grow by almost 40 pct, with annual increases of over 1 bln stg.
Revenue from continuing activities was 9.2 bln stg, up 1.8 bln stg.
This was primarily driven by a continued achievement of efficiencies,
particularly in UK gas distribution, favourable results from UK capacity
auctions in liquefied natural gas (LNG) storage and the French
interconnector, a full-year contribution from the growing Wireless
infrastructure business, and sustained volume growth in the US.
National Grid said its strong operational performance more than offset an
increase in depreciation charges in UK transmission, a loss on the UK
electricity Balancing Services Incentive Scheme, and the impact of timing of
recoveries of pass-through costs in the US.
Earnings per share increased by 10 pct to 46.7 pence, from 42.3 the previous
year.
The group is paying a final dividend of 15.9 pence a share, making the total
payout for the year 26.1 pence a share, up 10 pct.
In February, National Grid announced the acquisition of KeySpan for 7.3 bln
usd in cash, along with 4.5 bln usd assumption of debt, as well as the purchase
of Southern Union Company's gas distribution assets in Rhode Island for 498 mln
usd.

[upside potential] 15/5/2006 18:31

good day by the grid ! watch for the mkt report t'row "defensive stocks were sought after" etc, etc ! hope thursday brings a solid outlook statement.

[prewar] 12/5/2006 20:27

A lot of the US acqns were debt financed in $ and so there is a natural hedging for the $ income.

Keyspan won't be integrated for at least 12 months so lets hope you're wrong Santori re growth before that.

Much more important is the upcoming price control review

[utsushi] 12/5/2006 17:17

Upside, fundamentals fwd and historic remain unchanged and good but relative strength v.poor, telling us some thing...shares seem to have found a floor at 550p reflecting cheap valuation, $ weakness must be a negative factor, has NG heard of hedging?

We may not see much share price growth until keyspan is fully intergrated..hope i'm wrong.

[upside potential] 12/5/2006 17:08

this reads well but it is the fwd outlook which will be attended to, not what has been.

[upside potential] 12/5/2006 16:55

the weakening dollar is a concern and it may be that this trend will continue for a while yet - accordingly could be a constant dampener on grids price. still the valuation is far from stretched - the income yield is up with the best of them. got to look good for a take out IMO. Nigel Thomas I understand likes these shares too and he is a top class stock picker..in a very weak mkt today they faired very well: I am not surprised really and a promising sign.

[tole] 12/5/2006 16:26

National Grid

I highlighted National Grid back in February and I still the like the share now. The company's core business is a monopoly -- the transmission of electricity in the UK.

Monopolies normally produce lots of cash and National Grid is no exception. Analysts expect the company to generate cash flow of 85.7p a share this year, and the dividend should be somewhere around 27p -- a 4.7% yield.

The company issued an upbeat trading statement in March and the outlook seems promising. Barring a disaster with the regulator, National Grid will probably continue to pay a healthy dividend for years to come.

[tole] 12/5/2006 16:22

Larger UK Companies Reporting: Week Beginning 15th May 2006
National Grid (FY Results) – Thursday 18th May
12 Mths to 31 March 06 12 Mths to 31 March 05
Pre-tax Profit £2,132m £1,740m
EPS 47.7p 42.3p
DPS 25.4p 23.7p
Ex Div date June 2006 -
Div Pay date August 2006 -

NG's March 2006 trading update stated that the full year results will see "strong growth in underlying PBT" and EPS "well ahead of last year", reflecting a Group-wide efficiency drive (e.g. the "Way Ahead" programme); underlying volume growth in the US; higher UK capacity auction income; significantly lower financing charges; and the strengthening US dollar. This was reassuringly upbeat and our earnings forecasts were marginally increased, although this was largely driven by a lower than expected H2 tax charge. There was no further comment on the agreed £6.7bn acquisition of KeySpan in the US which is expected to be earnings and cash flow enhancing in its first full year and will create significant shareholder value.


The Board has committed to growing the dividend by 7% p.a. for the three years to March 2008, which provides a high level of income visibility. The shares are trading on a PE of 12.1x to March 2007 and offer a 4.7% yield, 1.7x covered.

[tole] 12/5/2006 13:11

Had a tickle at the lows today myself...Will add at intervals down to 520p

[puffin1] 12/5/2006 12:29

Will this be a BUY sub 550p ? OR will the dollar drag it down more.Any thoughts.

[utsushi] 11/5/2006 20:54

Upside, if they have not paid for keyspan yet a weak dollar might save a few £'s, figures soon so we will find out then i hope but strange, seems very cheap when you factor in the upgrades?

[upside potential] 11/5/2006 13:57

weakening dollar ? 30% approx of sales ? still gotta be worth a buy....

[utsushi] 11/5/2006 13:51

Seems a strange performance during a period of rising energy prices?

[prewar] 09/5/2006 16:27

Santori

Over what period are you calculating poor relative strength, the share price has fallen away in the last few months admittedly but this might have been due to the speculation regarding European consolidation.

If you consider investment performance over the last few years NG has done pretty well

As for alternative sources of energy, surely this will still need transporting around the grid??

[utsushi] 09/5/2006 13:44

prewar, what is your explanation for it's poor relative strength, are people using alternative energy sources, or is it that sam old chesnut about interest rate differentials short term...in which case NG is cheap.