The following is a summary of the National Grid Plc (NGG) Q4 2024 Earnings Call Transcript:
Financial Performance:
National Grid reported an underlying operating profit of GBP 4.8 billion, a 6% increase from the previous year.
The company's underlying earnings per share increased by 6% to 78 pence.
Their regulated businesses delivered a record of GBP 7.6 billion of investment, up 17% year-on-year.
Delivered £139 million of efficiency savings moving ahead of their three-year £400 million target.
The company's five-year financial plan includes GBP 60 billion of CapEx, expected to drive Group asset growth of about 10% per annum.
National Grid expects an underlying EPS CAGR of 6%-8% from full year 2025 and plans to grow dividends per share.
Company's net debt is expected to be around £500 million lower by the end of FY '25 due to their rights issue.
The company plans to raise £7 billion equity, continue a scrip arrangement, implement hybrid plus some disposals, and ongoing capital investment reaching up to £12 billion to £13 billion annually.
Business Progress:
National Grid was awarded 17 projects as part of Ofgem's Accelerated Strategic Transmission Investment program.
The company success on large infrastructure projects such as Viking Link and Eastern Green Link Projects reflects their proven track record.
A business re-organization is planned to transition National Grid into a pure-play networks business, offloading its National Grid Renewables and Isle of Grain LNG terminal in the UK.
The company will invest significantly in the US and the UK to meet the ambitious decarbonisation targets set by both governments.
National Grid has outlined a £60 billion capital investment program to grow the regulated asset base by 10% over the next five years.
A long-term growth financing package has been planned to enable submission of a fully financeable business plan to Ofgem.
The company proposed four key focus areas to Ofgem for the future: anticipating capex needs earlier, urging regulators to use a forward-looking viewpoint when considering unit costs, instigating incentives to create customer value, and pushing for stronger financial returns.
National Grid intends to accelerate investment in their cloud infrastructure with more clarity expected by the second half of their 2030s investment plan.
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