Half Year 2026 National Grid PLC Earnings Call Transcript
Key Points
- National Grid PLC (NGG) reported a 13% increase in underlying operating profit to GBP2.3 billion, driven by higher regulated revenues in both the U.K. and U.S.
- The company achieved a record GBP5.1 billion in capital investment in the first half, up 12% year-over-year, and remains on track to deploy over GBP11 billion this year.
- National Grid PLC (NGG) has secured the supply chain for all 17 ASTI projects, ensuring strong progress in its major U.K. infrastructure projects.
- The company has made significant progress in regulatory approvals, with around 75% of its five-year investment plan approved in the U.S., and important policy developments supporting its projects.
- National Grid PLC (NGG) declared an interim dividend of 16.35 pence per share, reflecting its strong financial performance and commitment to shareholder returns.
- The company faces challenges with affordability concerns in both the U.K. and U.S., which could impact future regulatory decisions and investment plans.
- There is uncertainty around the RIIO-T3 framework, with ongoing discussions with Ofgem regarding the investment framework and incentives needed to achieve a competitive return.
- National Grid PLC (NGG) is exposed to potential risks from changes in energy policy and regulatory environments, particularly in the U.S. where political shifts could impact energy pricing.
- The company has a significant amount of capital investment tied to the speed of connections coming forward, creating uncertainty in its investment timeline.
- Higher finance costs and increased depreciation due to a growing asset base have partially offset the company's strong operating profit growth.
Good morning, and welcome to National Grid's half 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 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, and thank you for joining us today. Well, as you know, this is my last set of results, and I'll be handing over to Zoe who becomes Chief Executive on the 17th of November. So before we get started with the results presentation, let me pass it over to Zoe to say a few words.
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