National Grid share price: Group’s FY operating profit rises

on May 19, 2016
Updated: Oct 21, 2019

National Grid (LON:NG) has updated investors on its full-year performance this morning.

**Highlights from the company statement:**
· Adjusted operating profit of £4.1bn, up 6%
· Adjusted earnings per share of 63.5p, up 10%
· Group Return on Equity of 12.3% (2015: 11.8%)
· Total investment of £3.9bn, up from £3.5bn, driving regulated asset base growth of 4%
· Solid UK performance, generating savings of over £330m for customers in the first 3 years of RIIO
· Good progress with significant rate filings in New York and Massachusetts

· Strong year in Other activities led by interconnector and property performance
· Value Added of £1.8bn or 47.6p per share
· Recommended full year dividend up 1.1% to 43.34p (2015: 42.87p)
“Today’s strong financial and operational results reflect the focus and commitment of Steve Holliday’s leadership over the last nine years, and I am delighted to be the CEO of a business that is in such good shape. In 2015/16, alongside the strong performance, we also made good progress with important rate filings in the US, and the start of a process to sell a majority interest in the UK Gas Distribution business, which is expected to complete in early 2017. The needs of our customers remain at the centre of our business, demonstrated by the significant investment in critical infrastructure in the UK and the US, and over £330 million of savings generated for customers in the UK in the last three years.

We are well positioned to deliver asset growth in 2016/17 and beyond. We will continue to enhance efficiency across the Group to deliver an outstanding and affordable service to our customers. At the same time, National Grid will continue to adapt to the new trends in the energy sector, to ensure we keep delivering value for shareholders.”
In the UK, National Grid expects to maintain performance broadly at the level seen last year. In the US, returns are expected to be maintained, ahead of rate revisions in Massachusetts and New York, which are expected to come into effect in late 2016 and early 2017. National Grid does not expect to repeat the level of performance seen in Other activities in 2015/16. Overall Group performance is expected to remain in line with the Group’s expectations.

Capital investment is expected to be at a similar level to 2015/16, driven by gas distribution in the US and continued asset health investments in the UK, together with further investment in electricity interconnector activities.

The process for the sale of a majority interest in the UK Gas Distribution business is on track with separation activities ongoing and the Group expect to complete a sale in early 2017.

The Board believes that National Grid is in a strong position to continue to deliver a safe and reliable service to customers, while sustaining its level of investment in growth and continuing the Group’s commitment to the dividend policy for the foreseeable future.
As of 07:22 BST, Thursday, 19 May, National Grid plc share price is 999.20p.