REG - National Grid PLC - Pre-Close Update ahead of 22/23 Full Year Results

National GridAnnouncement

14/04/2023 07:00

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RNS Number : 1852W  National Grid PLC  14 April 2023

 

14 April 2023

 

 

National Grid plc

 

Pre-Close Update ahead of 2022/23 Full Year Results

 

 

National Grid today issues a pre-close update ahead of announcing results for
the year ending 31 March 2023 on 18 May 2023.

 

Overall, the Group's performance is in line with our expectations. As set out
at half year results, we continue to expect underlying EPS growth for
FY2022/23 in the middle of our 6-8% CAGR growth range.

Though not expected to impact FY2022/23 results, the UK Government's
introduction of 'full expensing' tax relief for capital expenditure from 1
April 2023 to 31 March 2026, whilst economically neutral to National Grid, is
expected to impact underlying earnings from FY2024-26.

Expected lower cash tax payable will result in reduced revenues in UK
Electricity Transmission and UK Electricity Distribution, resulting in a
broadly neutral cash position. However, these impacts, alongside a
corresponding increase in IFRS deferred tax liabilities, will result in a net
adverse impact to statutory and underlying earnings.

Taking this into account, the Group still expects to deliver underlying EPS
growth of 6-8% CAGR across the five-year period from FY2022-26, but this is
now expected to be towards the lower end of this range. Further updates will
be provided with our detailed FY2023/24 guidance as part of full year results.

Finally, following the start of the RIIO-ED2 regulatory period on 1 April
2023, we will be hosting an investor event in London on 6 July 2023 showcasing
our National Grid Electricity Distribution businesses.

Enquiries and contacts

 

Investors and Analysts:

 

Nick Ashworth
                                    +44 (0)
7814 355 590

Angela Broad
                                     +44
(0) 7825 351 918

James Flanagan
+44 (0) 7970 778 952

 

Media:

 

Molly Neal
               +44 (0) 7583 102 727

Danielle Dominey-Kent                        +44 (0)
7812 485 153

 

 

CAUTIONARY STATEMENT

This announcement contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements include information with respect to
National Grid's (the Company) financial condition, its results of operations
and businesses, strategy, plans and objectives. Words such as 'aims',
'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook',
'seeks', 'estimates', 'targets', 'may', 'will', 'continue', 'project' and
similar expressions, as well as statements in the future tense, identify
forward-looking statements. This document also references climate-related
targets and climate-related risks which differ from conventional financial
risks in that they are complex, novel and tend to involve projection over long
term scenarios which are subject to significant uncertainty and change. These
forward-looking statements are not guarantees of National Grid's future
performance and are subject to assumptions, risks and uncertainties that could
cause actual future results to differ materially from those expressed in or
implied by such forward-looking statements or targets. Many of these
assumptions, risks and uncertainties relate to factors that are beyond
National Grid's ability to control, predict or estimate precisely, such as
changes in laws or regulations, including any arising as a result of the
current energy crisis, announcements from and decisions by governmental bodies
or regulators, including those relating to the RIIO-T2 and RIIO-ED2 price
controls and the creation of a future system operator; the timing of
construction and delivery by third parties of new generation projects
requiring connection; breaches of, or changes in, environmental, climate
change and health and safety laws or regulations, including breaches or other
incidents arising from the potentially harmful nature of its activities;
network failure or interruption (including any that result in safety and/or
environmental events), the inability to carry out critical non-network
operations and damage to infrastructure, due to adverse weather conditions
including the impact of major storms as well as the results of climate change,
due to counterparties being unable to deliver physical commodities, or due to
the failure of or unauthorised access to or deliberate breaches of National
Grid's IT systems and supporting technology; failure to adequately forecast
and respond to disruptions in energy supply; performance against regulatory
targets and standards and against National Grid's peers with the aim of
delivering stakeholder expectations regarding costs and efficiency savings, as
well as against targets and standards designed to deliver net zero; and
customers and counterparties (including financial institutions) failing to
perform their obligations to the Company. Other factors that could cause
actual results to differ materially from those described in this announcement
include fluctuations in exchange rates, interest rates and commodity price
indices; restrictions and conditions (including filing requirements) in
National Grid's borrowing and debt arrangements, funding costs and access to
financing; regulatory requirements for the Company to maintain financial
resources in certain parts of its business and restrictions on some
subsidiaries' transactions such as paying dividends, lending or levying
charges; the delayed timing of recoveries and payments in National Grid's
regulated businesses, and whether aspects of its activities are contestable;
the funding requirements and performance of National Grid's pension schemes
and other post-retirement benefit schemes; the failure to attract, develop and
retain employees with the necessary competencies, including leadership and
business capabilities, and any significant disputes arising with National
Grid's employees or the breach of laws or regulations by its employees; the
failure to respond to market developments, including competition for onshore
transmission; the threats and opportunities presented by emerging technology;
the failure by the Company to respond to, or meet its own commitments as a
leader in relation to, climate change development activities relating to
energy transition, including the integration of distributed energy resources;
and the need to grow the Company's business to deliver its strategy, as well
as incorrect or unforeseen assumptions or conclusions (including unanticipated
costs and liabilities) relating to business development activity, including
the integration of its UK Electricity Distribution business, and the sale of a
60% stake in its UK Gas Transmission and Metering business. For further
details regarding these and other assumptions, risks and uncertainties that
may impact National Grid, please read the Strategic Report section and the
'Risk factors' on pages 253 to 256 of National Grid's most recent Annual
Report and Accounts, as updated by National Grid's unaudited half-year
financial information for the six months ended 30 September 2022 published on
10 November 2022. In addition, new factors emerge from time to time and
National Grid cannot assess the potential impact of any such factor on its
activities or the extent to which any factor, or combination of factors, may
cause actual future results to differ materially from those contained in any
forward-looking statement. Except as may be required by law or regulation, the
Company undertakes no obligation to update any of its forward-looking
statements, which speak only as of the date of this announcement.

 

 

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