National Grid Share Discussion Threads

[utyinv] 25/5/2024 14:25

Graham
I agree with Newbank as Pettigrew's remuneration increased from £6 to £7.2m it was also in all the papers.

Bonus?? Why are they getting a bonus for when shareholders have had their justified returns held back. Bonus’s should only be paid for exception returns not to stay stagnant or fall in value.

Bonus’ should be held back if performance is not achieved. Upshot is he took £7.2 mil however you disguise it.

As for the Pensioners, the Pensioners taught John everything he knows today and its completely disrespectful of how he negated his responsibility to look after those that built the NG Company it is today.

[natasonline] 25/5/2024 14:15

Green Energy or Green Envy? Inside National Grid's Plan to Save the World, One Shareholder Loan at a Timehttps://democrawonk.com/2024/05/23/green-energy-or-green-envy-inside-national-grids-plan-to-save-the-world-one-shareholder-loan-at-a-time/?utm_source=twitter&utm_medium=Twitter&utm_campaign=ReviveOldPost

[dr biotech] 25/5/2024 12:38

The optics of tapping shareholders for equity looks quite good. A big case against the water companies is that the shareholders have just extracted a huge amount of money whilst the companies have built substantial debts and underinvested in infrastructure. By having us pay for a modern grid removes that argument to a certain extent. Of course they could have cut dividends going forward, but that doesn't have the same look about it.


Not saying its right, but it looks good.

[viscount1] 25/5/2024 11:33

Unironically yes: Nexans is probably a good investment.

[lippy4] 25/5/2024 11:19

can you imagine the whole country covered in pylons,may be i should invest in a pylon maker as that is what is going to happen to spread all this supposed cheap electricity from wind farms which in reality is expensive.

they dont mention all the other cables that supply electricity to your home will need updating..


i will not take the new shares and will invest the money elsewhere..

[grahamdodds1] 25/5/2024 10:53

Guys seriously where do you think the money to fund the £60bn investment was going to come from? The reality is that it will have to come from a mixture of disposals, debt, future profits and new equity. They will be maxing out the debt raise (but not a great environment to raise debt currently), profits are easily forecast, one off disposals would help short term but eat into ongoing profits obviously.

There's no money tree, this would be the last thing they would want to do as it's the most expensive capital to fund.

My concern here would be is it enough, is there going to be another one in say three years time?

[bountyhunter] 25/5/2024 10:35

Choked on their caviar lol! That just about sums up the situation here.

Skinny, too late for that, we've already all been caught out hook line and sinker!

What's happened here the last couple of days here makes you wonder which inflation beating income shares may be able to maintain a decent dividend with growth under a Labour government. I'm beginning to think cash ISAs may be a better bet, that's until Labour attack those. You may as well give all your money to Battersea Dogs' Home and live off benefits!!

..or maybe just invest in US shares? But there's an election coming up over there as well.

[natasonline] 25/5/2024 10:24

@Vis maybe under normal conditions, but inflation is in no way good for a long term project that requires buying vast amounts of copper and steel in a high inflationary environment, costs could easily spiral.Don't believe the News reports about inflation being under control, I predict another big wave after the election.

[cynicalsteve] 25/5/2024 10:18

I do have a small amount of sympathy for the NG management, they must have choked on their caviar when they saw Sunak walking out into Downing Street to announce the election the day before their own announcement. A utility asking for more money on the day fund managers and private investors were asking themselves if they should reduce their utility holdings was always going to end badly.

[viscount1] 25/5/2024 10:04

"Inflation is still out of control and set to continue till the end of the decade."

If you really think that (I do not) then NG is a great investment because of how their regulated fees work.

[viscount1] 25/5/2024 09:54

Re: renumeration:

2022: 6.6M
2023: 7.3M
2024: 6.4M

[grahamdodds1] 25/5/2024 09:39

Newbank re 9064, I think the reason the chair disputed the numbers was because JP remuneration package didn't move from 6.0m to 7.2m.

Do people really not read the accounts these days?

When you read the accounts you'll note the package is split into various constituent parts. From memory the biggest increase was in the bonus elements which were set years beforehand including KPI's on shareholder returns. I think salary and pension actually went down versus prior year.

[pander45] 25/5/2024 09:32

It's simple maths for me, I will be buying the max rights issue.

[grahamdodds1] 25/5/2024 09:30

Gary re 9067, you need to add the equity net of fees into your calculations.

[dr biotech] 25/5/2024 09:30

You should also add the cash value of the new shares to total value

[natasonline] 25/5/2024 09:19

There's multiple knowns. If anyone has ever watched Grand Designs they know how a 300K planned extension some how spirals in to a 600K eco shed and results in family divorce and the property being listed on Rightmove 5 years later for 300K.Costs could spiral and they try and milk us again in 5 years for another round of funding.Inflation is still out of control and set to continue till the end of the decade. I see this costing more and making nothing.I'm completely negative about this entire thing.

[garycook] 25/5/2024 09:16

With £10.85B of new shares issued it dilutes NG share price by 29.4%, which gives a figure of 1127/29.4% = 796p. Are these calculations correct, or am I off the mark anyone ?

[nickrl] 25/5/2024 09:09

The National Grid is already unable to move the so call green energy from where its produced to where its needed at the moment and thats before Milliband get his hands on the levers and attempts to accelerate the ludicrous goal of NZ leccy system to 2030. So you could say NG are being smart here and jumping on the green bandwagon and by demonstrating that it (ie us shareholders) are prepared to put money into this venture they expect to get treated well by Labour to still keep earning a decent return. Personally in the short term with Reeves holding the purse strings Labour need the likes of NG to do the heavy lifting on grid expansion so I wouldn't worry too much about political interference id be more concerned about OFGEM who are dragging their feet and the planning bottlenecks delaying NG actually making the investments so a retrun can be made.

[natasonline] 25/5/2024 09:02

Kibes. We normally expect NG to pay a 5% dividend. Everytime I've bought more shares in NG is during a dip to lock in a near 6% dividend.Management have stated next year the dividend will be 0.45p, so by my calculations to get a 5% dividend return the share price will have to be 9.0 pound.I expect 9.0 pound to be it's base level next year.

[newbank] 25/5/2024 08:54

With the extra funding, the Company will be cash rich to fund projects. Is it just projects or is it a side angle to ensure Pettigrews remuneration increases by 20% each year.

A question was asked by a shareholder at last years AGM via Zoom / Teams, where the individual questioned Pettigrews 20% increase. The new 'Chair' disputed the % rise, but because the question was pre-delivered over a vitual meeting, the shareholder couldn't come back with evidence of figures.

The Shareholder was absolutely right, whilst pensioners in the Company got 5% rise Pettigrew's rise was 20% from £6 million to £7.2 million.

What has he done to justify that rise in remuneration?

Two years ago the share price was around £12 / share ( as indicated in Uty's post 9057 ), since then the share price hasn't risen, in fact it has fallen, and based on the main deliverable / KPI of a CEO: to deliver a return on Investor's capital and to maintain the value of the capital, Pettigrew has failed. So why the increase?

[skinny] 25/5/2024 08:53

Bounty - as it looks like a hook, perhaps this fish should be next to your chart.

[kibes] 25/5/2024 08:50

This rights issue has gone down like a lead balloon. How low will the price go? People only buy this to get the dividend which will have to be reduced as eps will be reduced by a factor of 24/31.

[mirandaj] 25/5/2024 08:48

bountyhunter,

Thank you so much for keeping the information at the top of this so up to date all the time. It is very useful.

[bountyhunter] 25/5/2024 08:36

Uty, this kind of thing seems to always get leaked to the markets to some extent. In this case they do seem to have largely kept the lid on it judging by the 10 day chart but the increase in short positions does tell another story!