John Pettigrew, Chief Executive, said:
“Over the last six months, the exciting momentum within National Grid has continued as we deliver an unprecedented step up in capital investment. We successfully completed the £7 billion Rights Issue, underpinning our ability to deliver our five-year, £60 billion investment plan at pace. Delivery is well underway with investment increasing to a record £4.6 billion in the first half of this year. In the UK, work on our 17 major onshore and offshore transmission projects is moving forward, in consultation with our communities and stakeholders, and we are well progressed in securing the supply chain for all these projects. In the US, we’ve made good progress on our $4 billion Upstate Upgrade in New York, and delivered further gas mains replacement and network reinforcement across our communities.
We’ve been encouraged by policy and regulatory progress on both sides of the Atlantic. In the UK, we sold the Electricity System Operator to government, and Ofgem’s publication of the sector specific methodology decision marked the next step in the RIIO-T3 regulatory process. In the US, we have new rates for our downstate New York gas business, and for our Massachusetts Electric business, giving us greater visibility on investment plans.
National Grid is delivering a new and exciting phase of growth with an attractive investor proposition underpinned by high quality asset growth, strong earnings growth and an inflation protected dividend. We remain focused on playing our role in the energy transition and the responsible delivery of the new infrastructure required to enable the digital, electrified economies of the future.“
Financial Summary
Six months ended 30 September: continuing operations only (not including UK Gas Transmission)
| Statutory Results | Underlying1.2 | |||||
| Unaudited | 2024 | 2023 | % Change | 2024 | 2023 | % Change |
| Operating Profit (£m) | 1,309 | 1,985 | (34%) | 2,046 | 1,796 | 14% |
| Profit Before Tax (£m) | 684 | 1,371 | (50%) | 1,436 | 1,144 | 26% |
| Earnings per Share3 (p) | 12.6 | 26.7 | (53%) | 28.1 | 25.9 | 8% |
| Dividend per Share (p) | 15.84 | 19.40 | (18%) | |||
| Dividend per Share (rebased) (p) | 15.84 | 14.98 | 6% | |||
| Capital Investment4 (£m) | 4,603 | 3,946 | 17% | |||
2. Comparatives restated for the change in our underlying earnings definition to remove the deferred tax in our UK regulated businesses (NGET and NGED).
3. Comparatives restated for the impact of the bonus element of the Rights Issue (see note 9).
4. Our definition of capital investment was amended in 2023/24 to align with our statutory measure (see note 2(c) to the financial statements). Comparative amounts have been restated.
Financial Outlook and Guidance
- Guidance is based on our continuing businesses, as defined by IFRS and includes the contribution of the ESO up until disposal. It excludes the minority stake in National Gas Transmission, which was classified as a discontinued operation until disposal.
- Financial outlook over the five-year period from 2024/25 to 2028/29:
- total cumulative capital investment of around £60 billion;
- Group asset growth CAGRi of around 10% backed by strong balance sheet;
- driving underlying EPS CAGRii of 6-8% from a 2024/25 EPS baseline;
- credit metrics consistent with current Group rating; and
- regulatory gearing to fall to the low-60% range by March 2025, then expected to trend towards the high-60% range by the end of RIIO-T3.
For 2024/25 underlying EPS we continue to expect strong operational performance reflecting year-on-year operating profit growth of around 10%, as well as reduced financing costs due to lower average net debt. We anticipate the additional share count from the Rights Issue to largely offset this improved performance. We then expect an underlying EPS CAGR of 6-8% from a 2024/25 baseline, through to 2028/29. Please refer to the detail in the Five-Year Financial Framework and 2024/25 Forward Guidance on pages 15 to 17.