NGG - National Grid's full-year results top estimates but stock drops

2023-05-18 08:38:58 ET

National Grid ( NYSE: NGG ) -2.7% pre-market Thursday after reporting FY 2023 profit rose from a year earlier and reiterated its financial outlook for the five-year period through FY 2026.

The U.K. energy company said FY 2023 pretax profit edged higher to £3.59B ($4.48B) from £3.44B a year earlier, and underlying profit jumped to £4.58B from £3.99B in FY 2022, or 69.7 pence/share from 65.3 pence/share, roughly in line with 69.8 pence/share market consensus.

The company said results were helped by strength in its U.S. businesses and a higher contribution from its National Grid Ventures unit, which includes the interconnector business.

National Grid ( NGG ) declared a final dividend of 37.60 pence/share, lifting the full-year payment to 55.44 pence from 50.97 pence a year earlier.

For 2023-24, the company said it expects underlying earnings per share to come in modestly below 2022-23 levels due to the U.K. government's change to the capital allowance regime from April 1, which should nick EPS by 6-7 pence but would not affect the long-term.

National Grid ( NGG ) said its financial outlook over the five year period 2020-21 to 2025-26 remains unchanged.

In post-earnings comments, CEO John Pettigrew called for a " fundamental reform " of regulations to speed up the rate at which renewable energy sources can be linked to the grid.

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