National Grid Macro

How will National Grid's operating profit grow?

National Grid expects operating profit growth of around 10% for the full year. In terms of earnings per share (EPS) growth, the additional share count from the Rights Issue is now anticipated to largely offset this improvement. Over the following four years, EPS is expected to grow at an average annual rate of 6-8%.

Why is National Grid launching a rights issue?

National Grid describes the rights issue as a pre-emptive opportunity for shareholders to fund and to benefit from its higher-growth strategy. It believes it is in a position to deliver an “attractive mix” of asset and earnings growth and dividend yield, whilst enabling the energy transition in UK and US markets.

Will National Grid's operating profit be evenly split across the year?

Shares of the energy company were up around 1% as of 1039 GMT. National Grid said last month it expects operating profit to be broadly evenly split across the year for its UK businesses, but more heavily weighted towards the second half for its U.S. ones.

How will national grid's investment impact earnings per share?

The increased investment is expected to accelerate asset and earnings per share growth, National Grid said in a statement. "In the U.S., we're now progressing a number of major transmission projects to unlock renewable generation and upgrade infrastructure across our jurisdictions," CEO John Pettigrew said.

How is National Grid regulated?

Under the Group’s regulatory frameworks, the majority of the revenues that National Grid is allowed to collect each year are governed by a regulatory price control or rate plan.

How does National Grid create value for shareholders?

National Grid seeks to create value for shareholders through developing a balanced portfolio of businesses that offer an attractive combination of asset growth and cash returns. In 2023/24, the Group achieved asset growth of 9.7% driven by our capital investment programme alongside RAV indexation.