National Grid share price falls despite surging profits
The share price of the National Grid fell first thing on Thursday morning, despite the company reporting a nine per cent surge in pre-tax profits.
The figures
The company reported a pre-tax profit in the year to 31 March of £3.14bn, up from £2.88bn in 2015.
Its operating profit, meanwhile, was up six per cent to £4.1bn and it reported its earnings per share at 63.5p, up from 57.6p.
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It said that during the year it had added £1.8bn, or 47.6p per share, in value.
National Grid’s recommended full-year dividend was 43.34p, up 1.1 per cent from 42.87p.
Shortly after 8am, National Grid's share price had fallen 2.5 per cent to 974.70p.
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Why it’s interesting
The full-year results are the first to be reported since the departure of chief executive Steve Holliday, who held this role for nearly a decade.
He retired in March to be replaced by John Pettigrew, who was executive director of the group’s UK operations.
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Pettigrew said today’s results “reflect the focus and commitment of Steve Holliday's leadership over the last nine years, and I am delighted to be the CEO of a business that is in such good shape”.
Operationally, National Grid said its US business had delivered in line with expectations after it had stepped up its investment across the pond.
The company said its “other” businesses had a “strong year led by the performance of the French interconnector”.
What the company said
Chief executive John Pettigrew:
In 2015/16, alongside the strong performance, we also made good progress with important rate filings in the US, and the start of a process to sell a majority interest in the UK Gas Distribution business, which is expected to complete in early 2017. The needs of our customers remain at the centre of our business, demonstrated by the significant investment in critical infrastructure in the UK and the US, and over £330 million of savings generated for customers in the UK in the last three years.
We are well positioned to deliver asset growth in 2016/17 and beyond. We will continue to enhance efficiency across the Group to deliver an outstanding and affordable service to our customers. At the same time, National Grid will continue to adapt to the new trends in the energy sector, to ensure we keep delivering value for shareholders.