National Grid Share Discussion Threads

[bargainsniper] 24/5/2024 12:46

Thousands of miles of pylons sounds like an eye sore...ugh

One thing i preferred about UK versus US & Canada is the fact we don't have overhead pylons everywhere

To save the planet it seems we have to destroy the environment somewhat

[bountyhunter] 24/5/2024 12:37

NGPN (for those that can trade them, that's not everyone!)



At the top of the header as posted earlier.

[utyinv] 24/5/2024 12:35

Telegraph this morning:

John Pettigrew said the 1000 miles of (new) overhead power lines (6000 pylons), will prepare the UK for Electricity demand which is expected to double over the next 25 years.

Bill payers are to fund the £31 Billion overhaul of the network.

NG will fund the overhaul by adding £10 to households annual energy bills.

It also plans to raise £6.8 Billion by issuing new shares to help fund its network expansion, while selling off assets including Grain LNG terminal.

Pettigrew said:”It is at a scale that I think is fair to say is unprecedented, and it will make National Grid one of the biggest investors in the energy transition in the FTSE 100 list of companies.”

[davius] 24/5/2024 12:32

Bank of America cuts National Grid price target to 1,170 (1,270) pence - 'buy'

[marktime1231] 24/5/2024 12:19

Followed the debate with interest here. Not smart enough to finesse the situation so I have done what I was always taught to do with a Rights Issue ... if you believe in the business and intend to remain a holder then take up the rights offer in full.

Except.

My holding is in an ISA. This will be fresh capital, potentially putting me in breach of the annual subscription limit. The rights offer via the platform did say there is the option to take up the offer outside an ISA, so I am assuming the platform will do the necessary, I just ticked the box saying yes to all.

[laurence llewelyn binliner] 24/5/2024 12:12

#Anhar, correct..

The new shares, when issued and fully paid, will rank pari passu in all respects with the Existing Shares, save for the right to receive the recommended FY24 Final Dividend of 39.12 pence per Share which shall only be paid in respect of the Existing Shares.

So, still worth picking up for 645 pence, just no dividend on them..

[viscount1] 24/5/2024 11:36

The ticker is NGPN, as mentioned on this thread.

[lippy4] 24/5/2024 11:21

how much are the rights to sell??

[deanforester] 24/5/2024 11:18

There does not seem to be ticker for the nil-aid rights. I was looking for NGN, but no answer came there. The price has fallen to 908p, which means that the nil paid should be at about 264p. The fall from Wednesday's close is 219p, so it would appear that the price did not fall by the full amount. Hold on though, because it should have been 7/24ths of the nil paid price, which would be 64p. In any case the fall is more than the money required to take up the rights.

DF

[berny3] 24/5/2024 11:17

Thanks on the div yield. I had estimated 4.3% on current price for next payment which I think is very nice thank you.

Taking up my rights and have bought more after going X today/ Simply there is too much pessisism in my opinion. My gut reaction is labour will not get as big a majority as people think maybe even a hung parliment. Investment in NG is long term. This capital raise will make the company the forefront of UK power delivery and a significant player in the US too. NG don't control energy prices so I see it very difilcult for them to deliver cheaper fuel. They distribute rather than produce.

Each to their own. But to lock in 4.3% payment in 3months time and a potential rebound, revert to normal, in price seems a gift to me.

[pierre oreilly] 24/5/2024 11:10

an, so that's about 800 new shares giving about 310 divi for a 56 quid cost. That's good thinking.

[pierre oreilly] 24/5/2024 11:02

vis, that's why assets (and the income from them) increases by 10%, yet earnings only increase by 5 or 6 percent (according to ng.).

[anhar] 24/5/2024 11:01

PO. The divi way exceeds the transaction costs. I have a large holding in NG. in my income port so had quite a chunk of npr. The total costs of the two trades was about £56 but against that the divi on the new shares will be a few £00.

[viscount1] 24/5/2024 10:57

You are counting the assets but leaving the incremental debt out of the calculation?

[pierre oreilly] 24/5/2024 10:53

An, Interesting. how does the stamp+exes compare to the divi on those shares?

I'm not sure how to proceed yet. I need 18k for my rights, which i fortunately have in my isa earning fa interest. That's less than I've already lost in the last couple of days.

[utyinv] 24/5/2024 10:49

Written in law / licence agreement that capital expenditure will be allowed to be recovered from customers bills over a 40 year asset life base.

If everything goes as planned and Andy Agg stating yesterday that NG will be a £100billion Company, then based on 4.8billion shares in circ ( after all rights taken up) that could equate by 2030 to a share price of £20.83

[anhar] 24/5/2024 10:47

Here's what I've done. Sold all my npr for 229p less brokerage. I then reinvested the whole proceeds into NG. xr shares at about 910p plus costs.

Reason is I'm an income investor and wanted to reinvest before xd on 06 June to catch the next divi on the reinvestment. The rights do not have entitlement to that next divi.

The npr price will of course fluctuate so I may have been better off by selling in a few days - or worse. Anyway I now have certainty and don't need to monitor the npr price.

[pierre oreilly] 24/5/2024 10:45

Nat, yes labour are going to lower energy prices, lower taxes, cure cancer and make everyone a billionaire. Only they never say how they will do these things.

[pierre oreilly] 24/5/2024 10:43

una, they have in place 7.8b from a projected 30/40/50/60b (iirc, please check) investment expense. The rest will come from further mega borrowing at the appropriate time.

200m of the cash raised goes to the city advisors

800m goes to refund a maturing bond.

3.8b (iirc) will go to the States for investment there.

If it looks like a con, waddles like a con and talks like a con, then it's probably NZ.

[natasonline] 24/5/2024 10:42

Labour are on the radio this morning making lower energy prices a key part of their campaign. Good luck to NG clawing back this investment we're being asked to swallow from the plebs. I think we're being forced to eat this for no gain. Time will tell.

[gilesy911] 24/5/2024 10:41

Is this likely to go any lower

[utyinv] 24/5/2024 10:39

Unastubbs,

New Labour Government: Guardian newspaper ( mouthpiece for Labour) have written a very positive article this morning

[natasonline] 24/5/2024 10:37

I've just sold £10K of my FTSE100 etf to fund my rights purchase. Not happy about this, I now want nothing to do with this cucked green sink-hole. I wonder how many people will not be able to take up their rights? Who gets the rights Sold in to the market? Do they keep them or dump them on to the market and collect the arbitrage?

[anhar] 24/5/2024 10:37

I think the correct yield calculation should be on the current xr price of 912p for anyone buying now. With a forecast divi of 45.3p the forward yield is 5.0%.

[unastubbs] 24/5/2024 10:30

Berny3 if the share price on ex-div day was £9.10 as it is today - and then subtract the dividend of 39.12p - it would be about 8.71 after the event. The re-based dividend is approx 45.3p according to The Times this morning, so that would be a yield of 5.2%. When the shares were at 11.34 last week they were also yielding 5.2% when the payment was "known" (pace UtyInv) to be 59p. I personaly would argue that with the funding in place for the big investments it needs to make this takes away alot of uncertainty. I'm seriously thinking about re-entering this share.

as a PS - I consider yesterday's actions make it far less likely for the new Labour Government to interfere with NG, they will have their hands too full with water and the railways. NG have made their case and provided the funds to pay for everything. They'd be crazy to get involved. Corbyn would have, Starmer won't.