National Grid reports half-year results for 2023 with notable financial performance

National Grid, a leading energy transmission and distribution company, has announced its financial results for the six months ended 30 September 2023. The company showcased a strong financial performance during this period.

Financial Performance Highlights

• The statutory operating profit was recorded at £1,985 million, a decrease of 11% from the previous year.
• Profit before tax stood at £1,371 million, marking an 18% decrease compared to the previous year.
• Earnings per share were noted at 28.8p, a 14% decrease from 2022.
• The company declared an interim dividend of 19.40p per ordinary share, up 9% from the previous year.

Capital Investment and Energy Transition Initiatives

National Grid invested a total of £3,868 million in capital, maintaining a steady level compared to the previous period. A significant portion of this investment was allocated to regulated networks, reaching a record £3.5 billion. This investment supports major onshore and offshore transmission projects in the UK, as well as key transmission projects in New York and New England, USA.

National Grid Announces Solid Financial Outcomes for Period Ended September 2023. Photo courtesy of National Grid.

Strategic Developments and Efficiency Program

The company made substantial progress on Accelerated Strategic Transmission Investment (ASTI) projects and successfully reallocated capital from National Gas Transmission. It achieved £53 million in efficiency savings during the half-year, contributing to a cumulative total of £426 million, surpassing the £400 million target.

CEO’s Statement and Forward Outlook

John Pettigrew, Chief Executive of National Grid, highlighted the company’s solid results and reaffirmed full-year guidance. He emphasized the significant capital investment in regulated networks and the company’s pivotal role in the energy transition. Pettigrew also mentioned the updated 2020/21 to 2025/26 five-year financial framework, which aims to modestly enhance asset and EPS growth within existing ranges.

Conclusion

National Grid’s financial results for the first half of 2023 demonstrate its strong position in the energy sector and its commitment to the energy transition. The company’s strategic investments and efficiency savings underline its capability to adapt and grow in a dynamic industry.