National Grid (NG)

Business description

National Grid owns and operates regulated electricity and gas network assets in both the UK and the US. Its unregulated assets consist of the Grain LNG import terminal, interconnectors, a metering business and a property business.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 13212.0 5710.0 2417.0 50.2 19.0 6.3
2017A 15035.0 6352.0 2807.0 47.9 19.9 5.6
2018E 15279.0 4929.0 2894.0 64.4 14.8 6.6
2019E N/A N/A N/A N/A N/A N/A

Last updated on 19/10/2017

Investment summary

National Grid's FY17 results on 18 May were in line with expectations. The sale of 61% of the UK Gas Distribution was completed with £4bn of proceeds due to be returned to shareholders. In the US, rate filings in New York gas and electric businesses have begun to translate into enhanced returns. The slight reduction in overall group RoE from 12.3% in FY16 to 11.7% was partly due to an exceptionally strong prior period in Grid’s Other Businesses.

Last updated on 13/12/2017

Industry outlook

With visibility on the allowed rate of returns by Ofgem in the UK until 2021 and potential capex upside from the UK government's Electricity Market Reform, National Grid is well positioned to play a key part to ensure security of supply and support the development of new renewable generation.

Last updated on 13/12/2017

Key management

John Pettigrew, CEO
Andrew Bonfield, CFO

Company address

Floor 4
1-3 Strand
LONDON
WC2N 5EH
United Kingdom
+44 (0)20 7004 3000
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