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| Statement |
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| And our robust operational performance was also reflected in the 11% Group return on equity |
| [Indiscernible] for business interruption recoveries relating to Sellindge fire in September 2021 and continuing good performance across the interconnector portfolio |
| We expect another good year of underlying performance |
| In the final year of ED1, the business continued to perform well, delivering return on equity of 13.2%, including a 360 basis points of outperformance and customer satisfaction scores of 8.99 out of 10 |
| So, it's been another good year of performance for National Grid |
| Our significant progress is demonstrated by the positive impact of record levels of investment in both earnings growth and the energy transition |
| The GBP7 billion of bond financing completed in the past year demonstrates our strong access to financial markets and we expect to issue between GBP5 billion and GBP6 billion in the coming year |
| Our positive collaboration with governments and regulators on both sides of the Atlantic has helped to improve the understanding of the scale of the task ahead |
| So we're very pleased with how it's delivering, and that's where it's working for us |
| As these opportunities become reality, National Grid can deliver a cleaner, more resilient, more flexible system that in turn will help to lower costs for consumers, create new supply chains and new jobs across the economies we invest in |
| So as we said this morning, we've had a good year in terms of delivering our cost reduction initiatives up to GBP370 million |
| So I mentioned that I'm really pleased actually with the progress we have made in integrating [Indiscernible] distribution and international Grid |
| But the energy transition isn't just about the future, we're delivering it today with another record year of investment across the U.K |
| And we think that National Grid is very well placed to take advantage of opportunities |
| But the development of policy and regulation still needs to move at a much faster pace and given the similar issues that we see on both sides of the Atlantic, National Grid is uniquely positioned to provide solutions |
| Continued higher revenues across our interconnected portfolio |
| We've done that while it's performing very well |
| I mean, genuinely, I think we're in a very good position |
| So we continue to see opportunities in National Grid Renewables with good returns |
| We had another strong year in National Grid Ventures with underlying operating profit, including joint-ventures, up GBP278 million to GBP693 million for the year |
| Whilst this reflects a full-year of ownership, we saw a strong final year of delivery in the ED1 price control with an ROE of 13.2%, 360 basis points ahead of the allowed return |
| Electricity Distribution, good operational performance across all of our regulated networks, and a strong performance in National Grid Ventures |
| Today, our geographic and regulatory diversity with a portfolio that's broadly 70% Electricity and 30% gas and shows we're in a strong position to capture the considerable opportunities the energy transition brings |
| And I'm also proud of the way we've stepped up as a company in the past 12 months, helping our people, customers, and communities through an incredibly tough economic environment |
| We're really pleased that the government is consulting on it |
| And actually, we have been very pleased with the way that people have leaned into that |
| Grain LNG had a record year of utilization with 102 ships offloaded, supporting energy resilience in the U.K |
| In the U.K., our electricity transmission business continues to perform well, with Capital investment increasing by 9% to GBP1.3 billion |
| This is a hugely exciting period for our industry |
| But the underlying performance of the business continues to be strong as we go into the new rate filings for KEDLI and KEDNY |
| Statement |
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| And this results in our 2024 EPS guidance being below our reported underlying 2023 EPS |
| William transaction, mostly offset by fair value losses of National Grid Partners given adverse market conditions and our community support payments through this winter |
| Government's spring budget and changes to capital allowances, we now expect underlying EPS to be modestly lower year-over-year |
| We've had some cost pressures in New York, which is just reflected in our book |
| But it's clear to me, this isn't a quick fix, only significant investment in clean energy will bring customer bills down in the long-term |
| Moving to Electricity Transmission, the underlying operating profit was GBP1.1 billion, down GBP45 million, compared to last year |
| In New York, I think there was a slight decline in your ROE this year |
| And that looks quite low to me |
| Moving now to the U.S., where New York achieved an 8.6% return on equity, 20 basis points lower year-over-year |
| Last year, energy was in the spotlight for many different reasons, not least due to the affordability issues caused by much higher commodity prices |
| Net debt of the full-year was GBP41 billion, 7% or GBP3.1 billion lower than the prior year at constant currency, as we received proceeds from the sale of Rhode Island Gas Transmission and the Millennium Pipeline through the year |
| But from an IFRS reported perspective, we do expect to be slightly down next year |
| And if that doesn't get extended, we would expect the optical jump back up in EPS when get to FY ‘27, but we'll have to see where we get to |
| And one of the biggest issues on permitting is local opposition, which is remarkable at a time of affordability of crisis around living costs both in the U.K., Europe, and the U.S |
| For the full-year, the underlying effective tax rate, excluding the share of joint ventures was 23.1%, 120 basis points lower than the prior year |
| In the U.S., Winter Storm Elliott saw historic levels of snow, wind, and low temperatures |
| Capital investment was GBP72 million, down year-over-year, due to lower investments by National Grid Partners |
| But in the U.S., I think your comment was it's much slower |
| There are still outstanding questions about which projects is going to be put out to competition |
| On the other hand, you got John Penrose calling for a more aggressive stance from regulators on monopoly businesses? So I wonder, it's -- how do you feel this is going to shake out? Should we fear that there is a looming crackdown on regulated businesses or moreover, on the regulators? Or is it the opposite actually that we might get more favorable regulatory and government policy for you given that obvious need to accelerate net zero and transmission capacity? Thank you |
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