Full Year 2025 National Grid PLC Earnings Call Transcript
Key Points
- National Grid PLC (NGG) delivered a record capital investment of GBP9.8 billion, which is 20% higher than the previous year.
- The company achieved a 12% increase in underlying operating profit, reaching GBP5.4 billion at constant currency.
- National Grid PLC (NGG) has secured supply chain and delivery mechanisms for more than two-thirds of its GBP60 billion capital investment plan.
- The company reported a strong return on equity of 8.3% in UK electricity transmission, outperforming its allowed return by 100 basis points.
- National Grid PLC (NGG) has a comprehensive financing strategy in place, including a GBP7 billion equity raise, providing funding clarity until at least 2031.
- The company faced challenges with the Eastern Green Links 1 project, which is 16 months delayed, potentially leading to penalties from Ofgem.
- National Grid PLC (NGG) experienced a lower-than-expected return on equity in UK electricity distribution due to storm impacts and real price effects.
- The company recorded an accounting impairment of GBP303 million for its community offshore wind joint venture due to policy uncertainty.
- There are ongoing affordability pressures in the US, particularly in Massachusetts, where high commodity prices have impacted gas customers.
- National Grid PLC (NGG) faces potential risks from higher tariffs in the US, although the impact is mitigated by a largely domestic supply chain.
Good morning, and welcome to National Grid's full year results presentation. I'm Angela Broad, Head of Investor Relations, and it's great to have so many of you on the call today.
Firstly, please, can I draw your attention to the cautionary statement at the front of the pack. As usual, a Q&A with John and Andy will follow the presentation. (Operator Instructions) All of today's materials are available on our website. And of course, for any further queries after the call, please do feel free to reach out to me or one of the IR team.
So with that, I'd now like to hand you over to our CEO, John Pettigrew. John?
Many thanks, Angela. Good morning, everyone. Thank you for joining us to discuss our full year results. I hope to see many of you later today at our building our energy future event for a deep dive on major capital projects we're delivering across the UK and the Northeast US.
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