National Grid(NGG)2024-11-08 03:52Financial Data and Key Metrics Changes - Underlying operating profit from continuing operations was £2 billion, a 15% increase compared to the prior year at constant currency, driven by good performance across regulated businesses [11][41] - Underlying earnings per share increased by 8% to 28.1p, reflecting improved performance and a slight decline in finance costs [11][42] - Capital investment reached a record £4.6 billion, up 19% year-on-year at constant currency [12][43] Business Line Data and Key Metrics Changes - UK electricity distribution saw underlying operating profit of £573 million, up £10 million year-on-year, with capital investment increasing to £647 million, a rise of 6% [44][46] - UK electricity transmission reported underlying operating profit of £724 million, up £68 million, with capital investment increasing by 43% to £1.3 billion [47][49] - In the US, New York's underlying operating profit was £288 million, reflecting a £173 million increase, with capital investment rising 29% to £1.6 billion [48][28] Market Data and Key Metrics Changes - In New England, capital investment increased by 7% to £814 million, driven by grid modernization and asset health work [33] - Massachusetts Electric business approved a five-year plan with a revenue increase of around $100 million, enhancing recovery mechanisms for capital investment [34] Company Strategy and Development Direction - The company aims to become a preeminent pure play networks business with a £60 billion capital investment plan over the next five years [4][60] - Focus on delivering major capital projects in both the UK and US, with significant investments in ASTI projects and regulatory frameworks to support growth [77][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high reliability across networks despite severe weather challenges [13][14] - The company anticipates strong operational performance and year-on-year operating profit growth of around 10% [59] Other Important Information - The company completed the sale of its final 20% stake in the UK gas transmission business for £686 million [10] - The establishment of the National Energy System Operator (NESO) is expected to enhance clarity on energy project delivery [7][8] Q&A Session Summary Question: When will the business plan for the RIIO-ED3 period be submitted? - The business plan will be submitted in December this year, with a draft determination expected in June next year and final determination in December 2025 [81] Question: What is the expected impact of the US elections on investment plans? - The company does not expect significant changes to the £60 billion investment plan due to the US elections, as most capital investment is determined at the state level [86] Question: What are the expectations for operational incentives in the ED3 period? - The company aims for the return on equity to be at the upper end of the range, with discussions ongoing regarding operational incentives that could benefit both consumers and shareholders [90]