Solid enough but a bit lacklustre - that's how National Grid (NG.) performed in the six months to 30 September.
The most important figure for many investors in the utility company's financial results will be the half-year dividend payout, which remained steady at 14.49p. National Grid's management has committed to increasing the dividend every year "at least in line with" inflation; consequently, all the increase in the dividend this year will be put into the final dividend in August. Thereafter, the half-year dividend will be 35 per cent of the total dividend per share for the previous financial year.
Reported revenues increased significantly year on year but net regulated revenues only grew by £91m. That reflected new price controls in the UK and recent rate case settlements in the US, says finance director Andrew Bonfield. Operating profits slipped 1 per cent lower at £1.57bn, or 3 per cent lower on a constant currency basis, partly as a result of higher costs in the US. Adjusted pre-tax profits, down 7 per cent, were also impacted by one-off finance costs relating to switching to lower interest rate debt.
Bloomberg consensus forecasts for adjusted EPS in the current year are unchanged at 52.1p, 7.1 per cent lower than last year.
NATIONAL GRID (NG.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 768p | MARKET VALUE: | £28.6bn | |
| TOUCH: | 767-768p | 12-MONTH HIGH: | 850p | LOW: 678p |
| DIVIDEND YIELD: | 5.3% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 301p* | NET DEBT: | 190% | |
| Half-year to 30 Sep | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 6.08 | 1.18 | 26.3 | 14.5 |
| 2013 | 6.72 | 1.05 | 33.3 | 14.5 |
| % change | +11 | -11 | +27 | |
Ex-div: 4 Dec Payment: 22 Jan *Includes intangible assets of £5.28bn, or 142p a share | ||||
