Here it is, your all new National Grid thread. The chart features Bollinger Bands, MACD, 50 and 200 day SMAs.

Web Site Link:

http://www.nationalgrid.com/uk


Here's the link to the old NG. thread

Still holding on to the 700 level. Should pull clear when the market improves.

One company standing directly in the path of the storm was National Grid which has electricity and gas businesses in New York state and New England.

In 2011, when Hurricane Irene struck, leaving as many as 1.4m National Grid customers without power at one stage, the company took a £69m hit from the storm costs.

Yes - and today we took a small hit in the share price. Hopefully the worst is now over, but it will take some time to put a figure on the damage.

Looking strong again today and back up to recent highs. Can we break out into blue sky from here?

Back above 700 again. The dip down to visit the 200 day MA looks to have been just a technical correction. Scary though!

Solid IMS today with a positive outlook. Nothing there to scare the horses. Hopefully that will be enough to reassure nervous holders.

Back on the 200 day MA again with technical indicators looking weak. 'Risk off' again?

Looking strong again. New high printed this morning. Following the new eight year deal with the regulator, this is a strong candidate for the 'buy and forget' part of the portfolio. Just keep sending me the divis please.

Lord Gnome, I've just seen this thread.

As its mainly me and thee, I'll start using it - can you put a link to the old thread in the header for historic purposes?

Done, skinny.

I'm here for the divis, too.

New high this morning @744.

I've just sold some of my long term holding @745p.

There may be more to come short term, but its time to take some profits.

I've thought about it Skinny, but every time I thought about it I held on and the price went up still further. I'll carry on thinking (could be a good name for a film that).

I've held these for years and they have obviously been (and still are) an excellent holding - but I've felt it was time to reduce for a while, as they were @10% of my SIPP.

I plan to either buy back before the next dividend or buy another big gun - maybe HSBA - ex dividend next week.

Good luck and carry on thinking!

Approval of upstate New York rate case settlement

At an open session meeting conducted on 14 March 2013, the New York Public Service Commission (the "Commission") approved rate case settlements for National Grid's Niagara Mohawk electric and gas utility businesses. A written order is expected to be issued by the Commission shortly.

The new rate plans, as approved, reflect the Joint Proposal settlement filed with the Commission in December. They include a three year rate period, a 9.3% allowed return on equity, a 48% equity portion in the assumed capital structure and increased operating cost allowances compared to the current rate plans. The new rate plans provide for a cumulative delivery rate revenue increase of $123 million for electric operations and $9 million for gas operations by the third year of the rate period. The plans include a three year capital expenditure programme of approximately $1.6 billion. They also provide for various trackers for items including pension, property tax and commodity bad debt costs. The new rates are expected to become effective on 1 April 2013.

Ken Daly, National Grid President for New York said

"I am pleased that the rate impacts of the plan will result in customers seeing a reduction in their delivery bills in the first year of the proposal. The rate plans allow the Company to continue to invest in infrastructure upgrades and new electric and gas assets to cost effectively operate and maintain a safe and reliable electric and gas distribution system in upstate New York. The agreement provides adequate revenue to support National Grid's operations to achieve the public interest benefits identified by the Commission and other stakeholders."

Looks like a very timely trading sell Skinny. They've taken a bit of a whack today. I can't see anything in that announcement to scare the horses. Perhaps they've just run out of steam after a good rise.

All of the utilities seem to be down by a similar %age.

JP Morgan Cazenove Neutral 740.25 734.00 640.00 720.00 Upgrades

Bank of America Merrill Lynch Buy 740.25 734.00 - 735.00 Retains

New Dividend Policy and Trading Update

The Board of National Grid has agreed a new dividend policy to apply from 1st April 2013. The new policy will aim to grow the ordinary dividend at least in line with the rate of RPI inflation each year for the foreseeable future.

In deciding on the new dividend policy, the Board of National Grid considered a number of important factors to stress test the sustainability of the targeted growth rate and the support for strong credit ratings. These included regulatory outcomes in the UK and the US, expectations of delivery under incentive based regimes and sensitivities related to general economic conditions, government policy and other fiscal measures.

Trading update

2012/13 is finishing well, with earnings forecast to be modestly ahead of National Grid's previous expectations. In comparison to previous guidance, a strong UK Transmission business performance and lower net finance costs, now expected to be in line with last year despite increased net debt, should be broadly offset by additional expenses related to February's US storm restoration work and continued system implementation costs. Earnings are expected to further benefit from a lower effective tax rate, in part as a result of a change in profit mix.

National Grid's full year results will be published on 16 May 2013.

New highs again this morning @770 atm.

Delighted still to be holding these and enjoying the recent run. I have thought on several occasions that I should make a trading sell. How much further before we hit top?

Ho Hum.

Societe Generale Sell 765.00 765.00 634.00 674.00 Retains

HSBC Overweight 765.00 765.00 850.00 850.00 Reiterates

JP Morgan Cazenove Neutral 765.00 765.00 720.00 - Reiterates

New highs again.

Five year closing high today. These are better than a gilt. I reckon the yield will be bought down to 5%. First stop 800.

New high again today @793.50p

£8 touched.

£8.75 a good Target

New high @£8.03.

And back down again. Third time lucky?

816.50p touched.

824.50p. . 826P

What a strong run over the last three months.

New high today @835.50p.

Final results on Thursday 16th.

A bid for SVT today. I wonder what other high-yielding, rock-solid utility might be in line for a bid?

Morgan Stanley Overweight 847.00 847.00 775.00 880.00 Reiterates

Sell on the Final's news tomorrow? or maybe not in this rising market.

Results for the year ended 31 March 2013

Good financial results led by solid operational performance in 2012/13
· Operating profit[1] up 4% before currency movements, timing and major US storms[2]
· Profit before tax1 up 6%
· Earnings per share1 up 12% to 56.1p, up 13% excluding timing and major storm impacts
· Continued strong UK performance. Improved US regulated return on equity: up 40bp to 9.2%
· Recommended full year dividend up 4% to 40.85p in line with one year policy

Significant strategic and regulatory progress
· Agreed new eight year UK price controls covering nearly £24bn of regulated assets
· Finalised four US rate cases with two others settled, pending approval: covering approximately 55% of US rate base
· Capital investment of £3.7bn, contributing to £2.7bn growth in regulated assets
· Strong financial position: issued £2bn of very competitively priced hybrid bonds

Outlook for 2013/14
· Continued growth driven by efficient investment, strong operating cash flows and attractive returns
· New dividend policy to apply from 1 April 2013 - aim to grow the ordinary dividend at least in line with the rate of RPI inflation each year for the foreseeable future

National Grid says regulator deals provide platform for dividends

National Grid insisted it was well set to meet its target of delivering inflation-proofed dividend payments in the coming years after striking long-term deals with UK and US regulators....


National Grid Profit Rises as U.K. Growth Offsets U.S. Costs (1)

National Grid Plc (NG/), the operator of energy networks in the U.K. and North America, said fiscal full-year earnings rose 6 percent as growth in its British business countered costs from a hurricane that hit the U.S. in October.

Deutsche Bank Sell 830.25 600.00 600.00 Retains

Morgan Stanley Overweight 830.25 880.00 880.00 Reiterates

Back on the rise. Looks like Morgan Stanley has it over on Deutsche Bank - thankfully.

Another whatsit in the wood pile.

Exane BNP Paribas Neutral 0.00 780.00 780.00 Downgrades

Quite a drop today - sitting on the 50ma.

RBC Capital Markets Outperform 802.75 839.50 - 900.00 Reiterates

Not only down but on more then average volume, staying out for the moment until things clear.

Interesting comments from Citigroup this morning:
"In the past month, US 10yr treasury yields have risen from 1.7% to 2.2% on the back of improving economic sentiment and the potential for a reduction in Quantitative Easing in the US.
We have written on previous occasions about the sensitivity of National Grid’s share price to the movement in US treasury yields (Dividend Visibility Supportive and Yield Support Amid Regulatory and Macro Uncertainty) and this morning’s sharp move downward in the share price appears to reflect this. In our recent note Dividend Visibility Supportive, 12 April 2013, we argued that the implied cost of capital for National Grid, given the visible dividend policy, was low vs. history and the cost of capital allowed by the regulator.
Our target price of 820p (5% yield) implies a cost of equity of 7.5% which we indicated to be at the low end of the 7-10% range we discussed in our note. This appeared largely acceptable due to the nature of the macro environment and the search for yield as identified previously by our strategists.
With US macro data and sentiment improving, the sharp rise in US treasury yields in the past month, if sustained, could point to a cost of equity moving towards the higher end of the 7-10% range. We note a 9% nominal cost of equity (in line with allowed cost of equity from Ofgem), based on dividend growth of RPI on our forecasts, would imply a National Grid valuation of 640p.
US investors make up 40% of National Grid’s investor base and therefore a rise in US treasury yields will likely raise the required return on National Grid for those investors."

640p? Now that would be some drop.

Wonder if this piece of news has some baring on utility SP falls today http://www.bbc.co.uk/news/business-22710020

Well no surge in SP for NG. this pre-divi then.

Interesting to read a 'view from over there' take on things :- Why National Grid's 5.6% Yield Isn't Worth The Risk

Yes and interesting possible scenario Skinny, but the Grid are a monopoly so not to worried myself but worth keeping an eye on all the same. Successive irresponsible Governments have ducked their responsibility on the question of power supply over years as we know, seems to be a too hot potato for them.

Take your pick.

Deutsche Bank Sell 753.25 749.00 660.00 660.00 Retains

Morgan Stanley Overweight 753.25 749.00 880.00 880.00 Reiterates

IMS for the period 1 April 2013 to 28 July 2013

HIGHLIGHTS

· Solid operational and financial performance during the period
· UK: Good progress developing UK business to deliver outperformance under RIIO
· US: Positive start to the year with all outstanding rate plan settlements now approved

Morgan Stanley Overweight 760.50 760.50 880.00 880.00 Reiterates

National Grid plc - Special Call

Citigroup Neutral 777.75 820.00 820.00 Retains

HSBC Overweight 777.75 875.00 885.00 Reiterates

JP Morgan Cazenove Neutral 777.75 735.00 - Reiterates

Bank of America Merrill Lynch Buy 777.75 800.00 800.00 Reiterates

Morgan Stanley Overweight 777.75 880.00 880.00 Reiterates

RBC Capital Markets Outperform 775.00 771.50 900.00 900.00 Reiterates

National Grid: Boring But Safe 5.5% Yield

Galvan Research Buy 750.50 800.00 800.00 Reiterates

This is my core long term holding and has been so for a while. Boring yes, reliable dividend payer is what`s important to me.

Morgan Stanley Overweight 739.25 737.00 880.00 880.00 Reiterates

Goldman Sachs Sell 739.25 737.00 692.00 695.00 Reiterates

General market apart, the chart looks rather bullish.

We got caught with a bit of the fallout from Mr Millibean's tirade against energy producers by the looks of things. I see this as a temporary blip that should sort itself out very quickly. A trading opportunity, I reckon.

A blip assuming Ed & his cronies don't win the next election! ;o)

Mandelson raises doubts over Labour energy bill freeze

Lord Mandelson has raised doubts about Labour's plan to freeze energy bills, suggesting people may think it is going "backwards" in its industrial policy.

The former business secretary said he believed the party had moved on from the days of having to choose "between state control and laissez-faire".

A view from over there :- 3 High Yielding, Undervalued Utilities, Part I: National Grid

Hi SK
Thought that was a good article from Seeking Alpha. I keep a few in my mother's portfolio as it is a steady yielder and at the right level. One to pay the housekeeping...

Half year report for 6 months ended 30 Sept 2013

Solid first half performance: National Grid on track for good full year result
· UK: delivering good incentive performance under the new RIIO price controls
· US: new rates in place; investing in enhanced capabilities to drive further improvements
· Operating profit1 1% lower2 at £1,572m, (3% lower at constant currency3 excluding the impact of timing4) reflecting the expected end of Niagara Mohawk deferral income recoveries and higher US system implementation costs
· Profit before tax1 £979m, 7% lower reflecting the temporary additional cost of pre-financing asset growth at attractive interest rates
· Earnings per share1 1% lower5 at 20.4p, (down 3% excluding the impact of timing)
· Interim dividend of 14.49p per share as announced in March 2013
· No interim scrip dividend option given high level of take-up on August dividend payment

Maintaining outlook for operating performance, asset growth and earnings
· 2013/14 capital expenditure of around £3.5bn, net of efficiency savings, expected to drive regulated asset growth of around 6%
· Overall performance in the first six months consistent with Group expectations for the full year

Can't go wrong with these.

Hardly any SP change today so far.

It has had a 24p range.

HL take

24p eh, Thats very reasonable isn't it.

If you are trading 100,000 shares :-)

Yep, 3% very nice.

I wish :-)

Yeah, That would be nice wouldn't it -):

National Grid Management Discusses H1 2014 Results - Earnings Call Transcript

National Grid PLC [NG.] Ex-divi wed 4th Dec (14.49 p)

The thicker the line the more likely it is to hold? Lets hope so! ;o)

Yes it does look like it was drawn by a child of 5!

Finally £7.90p?

We could be in for a good ride again Skinny. There was a golden cross on the chart just over a week ago. Poking its head above 790, so hopefully back over 800 very quickly and then on to new highs. The political hot air about high energy prices has now died down, so no reason for it not to make progress.

It does look promising!

P Morgan Cazenove Neutral 798.00 798.00 735.00 805.00 Reiterates

Interim Management Statement

HIGHLIGHTS

Further progress in line with expectations towards a good full year result
· UK - good outcome expected both from efficiencies against regulatory "totex" cost allowances and from other incentivised performance
· US - separation of Long Island Power Authority (LIPA) management service activities completed on time on 31 December 2013 - over 2,000 employees transferred to new operator
· Strong network performance across all businesses in challenging winter conditions
· Capital investment of around £3.5bn expected to drive continued healthy growth in regulated asset value this year

Steve Holliday, Chief Executive, said:

"Our businesses made further progress through to the end of January toward achieving our priorities for the year. We are investing in our networks for the benefit of customers and maintaining a strong focus on efficiency and incentive performance.

Our networks performed well, demonstrating strong resilience during some difficult weather conditions in both the US and UK. I believe that this shows the benefits of our investment in process development and infrastructure and the continued dedication of our front line colleagues.

We reconfirm our positive outlook for 2013/14 - overall, we are well positioned to deliver another year of good operating performance and sustainable dividend growth."

BUSINESS UPDATE

To date National Grid has delivered good network performance for customers despite adverse winter weather conditions in both the UK and US.

In the UK recent investment in flood defences for critical sites over the past few years has helped to minimise any cost or reliability impact on National Grid's operations from recent bad weather.

In the US, there has been some extremely cold weather in recent weeks along with an ice storm in upstate New York and Massachusetts in December. The ice storm resulted in around 150,000 National Grid customers being temporarily without power due to damage to the local electricity distribution systems. National Grid's workforce responded well to these challenges, rapidly restoring power to customers. Disruption and costs related to extreme weather to date have been much lower than in the previous two years.

In December, the US business successfully separated its Long Island electricity transmission and distribution activities, where National Grid previously managed LIPA's assets under a management services contract. As a result over 2,000 National Grid employees transferred on 31 December 2013 to the new business operators, together with associated financial systems and other equipment.

Completing the financial systems aspects of the LIPA separation now allows a full focus on concluding the new US systems and financial processes projects. Work is now focused on implementing further system improvements and reducing ongoing costs including those associated with manual processes in the production of regulatory and statutory financial information. Expected costs remain in line with previous guidance and completion is still expected in 2014.

Business environment

Key elements of the UK electricity generation environment are largely consistent with those discussed in National Grid's half year results statement published in November 2013. Expected generation connections to, and disconnections from, the transmission grid over the next twelve months are largely unchanged, although further updates are possible before the year end. Consultation on new balancing services arrangements has made good progress, with Ofgem having approved two new mechanisms to be introduced ready, if required, for the winter of 2014/15. With continued tightening of plant margins expected into next winter and into 2015/16, these new services could provide additional tools to support the operation of the system.

In the US, environmental and economic advantages remain key drivers of growth in demand for new distribution infrastructure and connections. National Grid continues to make progress on developing new transmission and generation infrastructure that should deliver attractive medium to long term growth.

FINANCIAL UPDATE

There have been no material changes to the financial position of the Company. National Grid's balance sheet remains strong, underpinning the stable credit ratings and the continued ability to raise funding in debt markets at competitive rates.

OUTLOOK

Outlook is unchanged from that stated in National Grid's half year results statement published in November 2013. The Group is well positioned to deliver another year of good operating performance and sustainable dividend growth.

TECHNICAL GUIDANCE

National Grid is making no updates to the technical guidance published in the half year results statement of 21 November 2013.

A perspective from "over there"!

In The Pursuit Of Dividends: National Grid

Barclays Capital Overweight 848.00 844.50 850.00 875.00 Reiterates

Full Yesr results

Steve Holliday, Chief Executive, said: "National Grid delivered a solid year of financial performance, led by a good start to our eight year price controls in the UK and consolidation of underlying operational improvements in our US operations. During the year we invested over £3.4bn in essential infrastructure while delivering one of our best years ever in terms of network reliability and resilience. At the same time, we delivered strong cost efficiencies, particularly in the UK where around £70m of the savings will benefit customer bills starting in 2015/16."

Good operational and strategic progress led by efficiencies and investment
UK: Early preparation helped to deliver a strong first year under new RIIO price controls
· Total expenditure ("totex") efficiencies earned in 2013/14 contributed 120 bps to overall UK Return on Equity outperformance of 260 bps
· Around £70m customer share of efficiencies will help to reduce future bills
· Regulated investment of £2.0bn contributed to 5% UK RAV growth; up £1.1bn to £24.9bn

US: Benefits from new rate plans in New York and Rhode Island and focused cost control helped to offset general inflationary pressures on underlying costs
· Return on Equity 9.0% (2012: 9.2%)
· Capital investment of $2.0bn contributed to 9% US Rate Base growth of $1.3bn to $16.3bn (5% growth excluding working capital increases)

Solid overall financial performance maintaining strong financial position
· Group Return on Equity 11.4% (2012/13: 11.7%)
· Value Added1 of £2.1bn or 57.2p per share

· Adjusted operating profit up 1%, profit before tax up 2%
· Adjusted earnings per share up 5% to 54.0p
· Recommended final dividend of 27.54p/share (2012/13: 26.36p); full year dividend expected to be up 2.9% to 42.03p (2012/13: 40.85p), in line with inflation
· Good cash flow metrics, sustained A- credit ratings and stable gearing

A Final Dividend of 27.54p will be paid on 20 August 2014 to shareholders who are on the register of members at 6 June 2014 and a scrip dividend will be offered as an alternative.

RBC Capital Markets Outperform 889.50 889.50 900.00 925.00 Reiterates

A new high earlier @896p

No RNS so is the drop because of the Divi, if not why?

The dividend is 27.54p - it hit a new high on Monday since when its turned tail!

Berenberg Hold 838.25 785.00 785.00 Reiterates

But why turn tail and drop 40+p today? I could understand dropping after ex divi but why now?

It is annoying I agree :-

National Grid plc Stock Rating Reaffirmed by JPMorgan Chase & Co. (NGG)

Why National Grid plc Provides Terrific Shareholder Value

RBC Capital Markets Outperform 835.25 877.50 925.00 925.00 Reiterates

Chance to top up.

Not the first time NG has gone down a lot more then the divi payed.

Tweaking of dates :- Amendment to Financial Timetable

The ex-dividend date quoted of 19 November 2014 for the interim dividend 2014/15 will be changed to 20 November 2014 to take account of the shortened dividend timetable following the implementation of T+2 settlement from 6 October 2014. This therefore also changes the scrip reference price announcement date, from 26 November to 27 November, as this is connected to the ex-dividend date.

Surely all stocks go ex-div on a Wednesday. Is the entire stock market changing to Thursday for ex-div?

Have a read :- Introduction of T+2 standard settlement period

Thanks Skinny. I must have missed that announcement. Thursdays for ex-div from October.

Incidentally, I have just checked on the performance of my NG. investment since I bought my shares back in August 2010. See chart below. If only all my shares had a nice trend line like that.

It's a very nice hold with the divi too.

I've held these in one shape or form since they floated and took up the 2010 rights issue - 2 shares @335p for every 5.

Deutsche Bank Sell 838.75 838.50 660.00 725.00 Reiterates

HSBC (11th June) buy, tp 960p (same for Sanford C Bernstein).

A bit crude ...

Sell 844.75 844.50 736.00 780.00 Reiterates

Interim Management Statement

HIGHLIGHTS

• Continued solid operational and financial performance during the period
• UK: Further progress in delivering operational efficiencies and investment programme
• US: Good operational performance complemented by filing in New York for increased KEDLI capital investment allowances

more...

"As a result, we are maintaining our outlook for 2014/15, reflecting the expected delivery of another year of solid operating and financial performance and asset growth, consistent with sustaining our long term dividend policy."

Bounced right off support at 840 and now heading back to 900 and onwards. Technicals are excellent.

Breaking the 880p so expecting a new big figure shortly.

Still a bit crude...

skinny, works for me thanks!

A new high @901.50p

12 Sep 2014 National Grid PLC NG. RBC Capital Markets Sector Performer 903.25 903.50 925.00 925.00 Reiterates

Price now back to the top of your upper channel skinny. A bounce from here would be expected, but I suspect we will have to wait until the outcome of the Scottish referendum. We could be in for one heck of a relief rally if the Scots vote 'no'.

I was going to have a reasonable short on the FTSE, but now I suspect (hope) the Scots will vote no - in which case, I can see the FTSE taking out the all time high of 6,950.60.

We should hit 7000 at some point this year. I have set out my stall accordingly. It was 'brown trousers time' when the referendum was in doubt, but we should have a clear run if there is nothing else unforeseen coming along to derail it.

MS have upgraded the utilities.

Morgan Stanley Overweight 868.75 872.00 860.00 920.00 Reiterates

With reference to my post 122 - I had obviously not taken into account Ebola and IS! Clearly those two are having a major impact on National Grid's operations.

Lord Gnome - I've posted similar here and there - basically assuming that once the referendum was done and dusted, the markets would test the all time highs - hey ho!

National Grid warns of lower winter power capacity

Half Year results Friday 7th November.

916 previous high.

RBC Capital Markets Sector Performer 924.75 925.00 925.00 Reiterates

Half year report for the six months ended 30 September 2014


Steve Holliday, Chief Executive, said: "After the first six months of 2014/15 National Grid remains on track to deliver another year of strong overall returns and asset growth. We continue to provide good value and strong reliability for customers while keeping our element of bills as low as possible."

Positive first half performance
· Overall performance in the first six months in line with Group expectations for the full year
· UK: continued delivery of good operational performance and capital programme efficiencies
· US: strong growth and completion of major financial system upgrade balanced by increased gas mains repair costs following the exceptionally cold winter of 2013/14
· Interim dividend of 14.71p per share in line with policy

Financial results for continuing operations
· Adjusted operating profit1 2% higher at £1,611m
· Adjusted earnings per share1 16% higher at 23.4p principally due to lower financing costs

By John Ficenec, Questor Editor8:00PM GMT 08 Nov 2014 CommentsComment
National Grid
919p
Questor says HOLD
Low interest rates boost profits
The UK’s largest listed utility company, National Grid [LON:NG] (click highlighted text for fundamental analysis), continues to enjoy a favourable economic backdrop to its activities. Record low interest rates are reducing costs on its debt pile, while steady inflation allows it to push through price increases to customers. The company said that pre-tax profits had increased by 12pc to £1.18bn during the first six months ended September. The main driver of the profit performance was cheaper borrowing rates. The utility reported an effective interest rate of 4.5pc during the first half, down from 5.3pc at the same stage last year. That might not sound like much, but on a net debt pile of £21.7bn the savings are £114m.
Defensive earnings
National Grid has stable revenue as it owns and operates gas and electricity distribution networks in the UK and some parts of the US, and then charges for the use of those networks, which creates a natural monopoly. The industry is closely regulated in the UK by Ofgem. National Grid reached an agreement with the regulator last year which set the framework for returns during the next eight years. With a more stable regulatory outlook the company increased the interim dividend by 1.5pc to 14.71p, going ex-dividend on November 20, and paid on January 7. Annual dividends had been increasing by about 8pc a year; now they track retail price inflation at 2.9pc this year.
Asset-backed shares
The value of the gas and electricity network is important to shareholders as it supports the share price. National Grid said its total assets in the UK and the US increased in value by £1bn on six months ago, to more than £39bn at the end of September. It invested £1.58bn in new gas and electricity infrastructure during the first half of the year and expects to spend up to £3.3bn for the full year. With such a large asset base delivering steady revenue, National Grid can fund a large debt burden, resulting in total borrowings of £25.6bn and net debt of £21.7bn at the end of September. A big chunk of this debt, 57pc, is at fixed low interest rates, the rest is RPI linked.
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Shares at record highs
The last time Questor looked at National Grid we said investors should hold due to the favourable credit backdrop. The shares have increased more than 6pc since then and now trade on a price earnings ratio of 16.7 times, and offer a prospective dividend yield of 4.7pc guaranteed to rise with inflation. That leaves the shares at a slight premium to Centrica and SSE, on price/earnings ratios of 14.5 and 13.2 respectively, but they aren’t perfect comparisons. The shares are also at record highs and are overpriced when you consider the forecast earnings growth; as a guide, a utility should trade on around 12 times earnings. What you are getting here is surety of income, and for that reason we keep them as a hold.

New high @930.50p

New high @952p.

New high again today @965p.

Ex dividend tomorrow 14.71p

Credit Suisse Underperform 906.60 870.00 780.00 Downgrades

National Grid stops Q1 and Q3 Interim Management Statements

Citigroup Neutral 951.40 951.40 820.00 900.00 Reiterates

National Grid, Eversource get OK for huge transmission project

A partnership between National Grid (NYSE:NGG) and Eversource Energy has been selected by regional power grid manager ISO New England to build one of the largest electric transmission projects in recent New England history.

The proposal was chosen over another proposal presented by New Hampshire Transmission, a subsidiary of NextEra Energy (NYSE:NEE).

The winning plan, which is expected to cost $510M, calls for new overhead lines in existing rights of way through Massachusetts and southern New Hampshire, and new underground cables through Boston and other Massachusetts communities.

Notification of Major Interest http://www.moneyam.com/action/news/showArticle?id=4981773

Sanford Bernstein "outperform" (14/4), tp 1010p

Results for the year ended 31 March 2015

Steve Holliday, Chief Executive, said: "National Grid delivered another successful year. Overall, our businesses achieved a strong operating performance and we developed new strategic growth opportunities in transmission and interconnection. We invested around £3.5bn in essential infrastructure during another year of strong network reliability, safety and resilience. Effective regulation continues to drive efficient investment. In the UK, for example, savings generated in the first two years of the RIIO price controls will reduce future customer bills by around £200m."

Good operational and strategic progress led by efficiencies and investment
UK regulated: Ongoing benefit from 2013 restructuring, improved efficiency and incentive performance
· RIIO incentive performance contributed 270bp (2013/14: 180bp) to UK Return on Equity with pre-determined additional allowances contributing a further 90bp (2013/14: 80bp)
· Capital investment of £1.8bn with regulated asset value up 2% to £25.4bn.

US regulated: Profits maintained, supported by additional revenues from existing rate plans
· Return on Equity 8.4% (2013: 9.0%) reflecting increased rate base and additional winter costs
· Record capital investment of $2.4bn; $0.9bn total (7% underlying) growth in rate base to $17.2bn
· Completed financial systems upgrade and now preparing for important rate filings in 2015/16

New business activities: Good strategic progress with new investments approved
· €1.4bn planned investments approved for Norway and Belgium interconnector projects
· London property joint venture agreed; first site transfer expected during 2015/16
· Continued progress developing multiple US transmission investment opportunities

Strong overall financial performance maintaining robust financial position
· Group Return on Equity 11.8% (2013/14: 11.4%); Value Added1 of £1.7bn or 44.7p per share

· Adj. operating profit, excl. timing, up 5% to £3,927m (2013/14: £3,731m) at constant currency
· Adj. EPS, excl. timing, up 10% to 59.6p (2013/14: 54.4p)
· Strong balance sheet and cash flows; sustained financial metrics consistent with A- credit rating
· Recommended final dividend of 28.16p/share (2013/14: 27.54p); full year dividend up 2.0% to 42.87p (2013/14: 42.03p), in line with inflation and policy

more....

What a pioneering Target Price!

JP Morgan Cazenove Neutral 909.00 909.10 805.00 902.00 Reiterates

Chief executive Holliday set to stand down at National Grid

Jefferies International Buy 839.40 839.60 - 900.00 Initiates/Starts

Britain faces tightest winter power supplies in decade - National Grid

Confirmation of the CEO change http://www.moneyam.com/action/news/showArticle?id=5144884

Morgan Stanley and Jefferies today tp 955p and 900p respectively. Alphavalue on 29/10, tp 1006p

Half year report for the six months ended 30 September 2015

Steve Holliday, Chief Executive, said: "Our business has delivered a strong performance in the first half of the year while maintaining high standards of safety and reliability for our customers and increasing our level of investment. Headline profits have benefited from an excellent performance from our interconnectors and property activities, which are strongly weighted towards the first half."

Strong first half performance:
· Adjusted earnings per share of 28.4p, up 22%, principally driven by other activities
· Investment of £1.9bn up 17% at constant currency
· UK Regulated: progress towards another year of good performance
· US Regulated:
o increased investment to over $1.4bn
o agreed increased capex and extended tracker in downstate New York
o full rate case filed for Massachusetts Electric
· Other activities: very strong first half UK interconnector and property performance
· Strong balance sheet maintained
o interim dividend of 15.00p per share in line with policy

Portfolio development:
· Commencing a process for the potential sale of a majority stake in UK Gas Distribution

more....

Should achieve higher growth going forward. Should be well received.

Worth a read - National Grid confirms sale of UK Gas Distribution stake

National Grid holds US Update event in London


National Grid is today hosting an event in London for investors and analysts to give them an opportunity to meet with the US leadership team and to hear an update on the activities of the US business.

Materials provided at today's event will be available on National Grid's investor website www.nationalgrid.com/investors and Investor Relations App after the event.

Webcast: For those of you not attending, a live webcast for the main plenary session beginning at 2pm will be available by registering at: http://view-w.tv/786-1014-16445/en - This link will also be available to replay after the event.

Half Year Report http://www.moneyam.com/action/news/showArticle?id=5156399

RBC and Bernstein today, tp 1000p and 1010p respectively.

A year on and we finally look like we're breaking higher for a new big figure.

One of my better choices, hope the brokers are right.

Within reach of the 992.50p high.

A new high @998.20p.

Yes! Is £10 going to be broken. ...

Looking much better here and don't forget the healthy dividend yield.

Second close above £10.

A new high @1007.50p.

Can't believe I'm in the right place at the right time on 3 of my picks, RPC - NG. - BOO.

Exane BNP Paribas Underperform 999.70 830.00 880.00 Reiterates

1007 p today .

All a bit academic, but whilst it says 'reiterates', the last rec from HSBC was in July with a TP of 980p.


HSBC Buy 961.50 1,040.00 1,040.00 Reiterates

Berenberg Hold 1,001.00 850.00 970.00 Reiterates

I will hold no probs. :)

Final's out Thursday.

'N' isn't anywhere near 'F' Stan! :-)

Just testing -):

RESULTS FOR THE YEAR ENDED 31 MARCH 2016

HIGHLIGHTS
Strong performance, with a significant level of investment
· Adjusted operating profit of £4.1bn, up 6%
· Adjusted earnings per share of 63.5p, up 10%
· Group Return on Equity of 12.3% (2015: 11.8%)
· Total investment of £3.9bn, up from £3.5bn, driving regulated asset base growth of 4%
· Solid UK performance, generating savings of over £330m for customers in the first 3 years of RIIO
· Good progress with significant rate filings in New York and Massachusetts
· Strong year in Other activities led by interconnector and property performance
· Value Added of £1.8bn or 47.6p per share
· Recommended full year dividend up 1.1% to 43.34p (2015: 42.87p)

The market gives these a right hammering on Finals day.. down nearly 3%!

buy some more then stan.,.

Lend us fiver 1st BB -):

A new high this morning @1017.00.

1036..... lovely.

Looking a tad over bought!

It's because I sold out way too early the other day. Story of my life.

Apparently a proportion of NG. revenue is derived from the US where they have business interests, so this makes the stock more attractive as a defensive buy, assuming Sterling stays weak v Dollar strength.

Now you tell me.

A view from over the water - National Grid Looking For Financial Flexibility

National Grid Said to Start Auction for Gas Network Stake

Perverse logic behind National Grid revamp

StockMarketWire.com
National Grid's H1 statutory pretax profit has fallen 64% to £485m, from £1.35bn a year ago. Interim dividend was 15.7p a share and in-line with policy.

"We have delivered good results and made significant progress on key priorities while continuing to deliver a safe and reliable service to our customers in the UK and the US," said CEO John Pettigrew.

"First half earnings per share were in line with a strong prior year, with our regulated businesses delivering a solid performance.

"In the US we received a positive outcome for our Massachusetts rate filing and are in the final stages of agreeing updated rates for our downstate New York gas businesses.

"Once agreed, around 40% of our US business will be operating under new agreements which will enable us to improve future returns in the US. In the UK the proposed sale of our gas distribution business is on track with separation activity in the final stages.

"Looking further out we are focused on evolving National Grid to enable us to play a leading role in shaping the future of energy networks."

HIGHLIGHTS:
- Adjusted earnings per share of 28.2p, in line with last year

- ​​Operating Profit of £1.9bn, up 1% includes favourable timing and FX

- Capital investment of £2.2bn, up 12% (6% at constant currency)

- New rates for Massachusetts Electric, allowed return on equity of 9.9% 3-year Joint Proposal filed for downstate New York gas businesses

- Solid operational performance in the UK, generating savings for customers UK Gas Distribution majority sale on track

- Strong balance sheet maintained.

Just has a punt here (I am a long term holder).

SSE looks a reasonable punt today also.

Back in for 15p div whilst below £10 mark.

Hmmmm..... the two year chart is a little less encouraging, imo.

I think this is a 15.7p divi with ex date on 26-11-16.

I'm a bit incorrect. It is15.17p and Ex date is 24 Nov.

StockMarketWire.com
National Grid has agreed to sell a 61% equity interest in its UK gas distribution business (NGGD) to a consortium of long-term infrastructure investors. It flagged a return of £4bn net proceeds to shareholders.

The Consortium comprises Macquarie Infrastructure and Real Assets ("MIRA"), Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure Limited/International Public Partnerships.

The terms of the Transaction imply an enterprise value for NGGD of approximately £13.8bn.

In consideration for the sale of its equity interest, on completion National Grid will receive a payment of £3.6bn in cash from the Consortium (subject to certain completion adjustments) and will own a 39% minority equity interest in a new holding company for NGGD ("GasD HoldCo").

In addition, National Grid will receive £1.8bn from additional debt financing.

Following completion of the Transaction, National Grid intends to return £4 billion of net proceeds to shareholders through the combination of a special dividend (together with a share consolidation) and share buy-backs.

At least 75% of the net proceeds are expected to be returned via a special dividend in Q2 of calendar year 2017. Net proceeds are calculated after retaining £0.7bn of the additional debt financing, in order to maintain the equity value of our 39% interest in NGGD, and after deduction of costs of around £0.5bn.

A further announcement regarding the nature and timing of the capital return will be made in due course.

Completion of the Transaction is conditional on the receipt of merger clearance from the European Commission. Subject to satisfaction of this condition, National Grid expects that the Transaction will complete on or prior to 31 March 2017.

National Grid and the Consortium have also expressed an interest in relation to the potential future sale and purchase of an additional 14% of equity in GasD HoldCo on broadly equivalent financial terms to the Transaction. Further details will be announced if agreement is reached.

In conjunction with the transaction the Board has agreed a voluntary distribution of £150 million for the benefit of energy consumers. National Grid takes very seriously the role it plays in people's daily lives and believes it has a responsibility to ensure that our wider stakeholders benefit from the incremental value of the NGGD sale.

Squint!

Berenberg Buy 943.00 970.00 1,050.00 Upgrades

National Grid: Now Is The Perfect Entry Point

Back above the line.

Morgan Stanley Overweight 1,019.75 1,100.00 1,100.00 Reiterates

JP Morgan Cazenove Overweight 1,019.75 1,100.00 1,100.00 Reiterates

National Grid completes sale of majority interest in UK Gas Distribution business

National Grid plc is pleased to announce it has completed the sale of a 61% equity interest in National Grid Gas Distribution ("NGGD") to a consortium (the 'Consortium') of long-term infrastructure investors.

The Consortium comprises Macquarie Infrastructure and Real Assets, Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure Limited/International Public Partnerships.

As previously announced, National Grid intends to return £4 billion of the net proceeds of sale to shareholders. Approximately £3 billion of the proceeds will be returned through a special dividend with a share consolidation, and the remainder by way of a share buyback programme.

National Grid also announces that it has entered into an agreement with the Consortium for the potential sale of a further 14% equity interest in NGGD (the "Further Interest") at the option of National Grid or the Consortium (as applicable) at any time between 1 March 2019 and 31 October 2019, subject to no less than six months' prior written notice and satisfaction of customary regulatory conditions. The expected consideration for the Further Interest is approximately £0.8 billion to be paid in cash and is on broadly similar terms to the sale of the 61% equity interest. If the sale of the Further Interest is completed, the use of proceeds will be updated at that time.

John Pettigrew, Chief Executive of National Grid, said: "I'm pleased that we have successfully completed the sale of a majority interest in our UK Gas Distribution business. This was a significant and complex transaction, under a tight timetable, which has delivered a good outcome for our customers, employees, and shareholders. This transaction will enable National Grid to continue to build a strong asset portfolio that delivers attractive total shareholder returns, while maintaining a strong balance sheet."

As previously announced, in conjunction with the transaction, National Grid will make a voluntary distribution of £150 million for the benefit of energy consumers. National Grid takes very seriously the role it plays in people's daily lives and believes it has a responsibility to ensure that our wider stakeholders also benefit from the sale of NGGD. National Grid wants to ensure that the contribution is used in a way that provides the maximum possible benefit and expects to provide more details about how this will be done in due course.

In line with the announcement on 8 December 2016, the return of proceeds to shareholders will commence as soon as possible following completion of the sale. Shareholder approval will be sought for the share consolidation as well as for the purchase of own shares and other resolutions relating to the capital return at a General Meeting to be held at 9.00 a.m. on Friday 19 May 2017 at the offices of Linklaters LLP, One Silk Street, London EC2Y 8HQ.

Further details about the resolutions to be considered at the General Meeting will be set out in a Circular that is expected to be published on 19 April 2017.

Goes ex-divi on Monday 22nd May (seems odd on a Monday???) but pays 84p.

That's a special divi Harry, and on top of that there's the Finals on the 31, and the final divi. After.

I Read up on NG for the usual "safe as houses" divi but came-away thinking not this year.

And don't forget the consolidation :-

National Grid PLC National Grid completes Gas Distribution sale

Re: return of proceeds:

"In line with the announcement on 8 December 2016, the return of proceeds to shareholders will commence as soon as possible following completion of the sale. Shareholder approval will be sought for the share consolidation as well as for the purchase of own shares and other resolutions relating to the capital return at a General Meeting to be held at 9.00 a.m. on Friday 19 May 2017 at the offices of Linklaters LLP, One Silk Street, London EC2Y 8HQ.

Further details about the resolutions to be considered at the General Meeting will be set out in a Circular that is expected to be published on 19 April 2017."

Provisional Timetable
NYSE notification 31 March 2017
Publication of circular and reference price for share consolidation 19 April 2017
General Meeting 19 May 2017
Record date for the special dividend 19 May 2017
Ex-dividend date for the special dividend 22 May 2017
Special dividend payment date 2 June 2017

Ah, cheers Stan.
Next ex-divi date looks to be 1st June, but no amount set yet.
Seems a pretty good return, so have taken a short term plunge.
Obviously sp will correct ex-div, so will have to watch carefully.

Ah yes I forgot about the consolidation Skinny, another element of possible sp movement that I don't like.

Berenberg today downgrades its investment rating on National Grid PLC (LON:NG.) to hold (from buy) and left its price target at 1050p.

"● Investment case played out: When we upgraded National Grid to Buy in January, the investment case was very simple: in our opinion, the share price did not reflect the value of the forthcoming 84.375p special dividend (ex-div 22 May). That has now played out and the shares are trading close to our unchanged 1,050p price target. Consequently, we are downgrading our rating to Hold.
● Temporary timing factors behind upgrade to near-term forecasts: There can be a mismatch between allowed and recovered revenue. A catch-up is sometimes required. National Grid has announced that timing factors in the UK (UKET) and the US add roughly 7p (previously 2p) to 2016/17E EPS. This represents the lion’s share of our estimate changes. The catch-up effects are, of course, only temporary. Eventually, revenues will normalise.
● Longer-term forecasts little changed: Nevertheless, we make some subtle changes to the mix, with lower growth expectations for UK Electricity Transmission (less growth in the regulatory asset base (RAB)), offset by a higher expected contribution from non-regulated activities (interconnectors) and lower financial expenses. We also make a few tweaks to FX and tax.
● UK general election and risks: UK residential energy bills are once again under fire in the pre-election campaigns. This is more of an issue for supply companies like Centrica, SSE, E.ON, EDF, Iberdrola and innogy than National Grid. That said, National Grid’s growth prospects could be hampered if government intervention prolongs the investment hiatus in new capacity.
● Special dividend: The group plans to return the vast majority of proceeds from its recent Gas Distribution disposal to shareholders via an 84.375p (ú3bn) special dividend and a ú1bn share buyback. The dividend will be accompanied by an EPS-smoothing 11-for-12 share consolidation. The shares will go ex-special-dividend on 22 May 2017 with payment due on 2 June 2017. Given the magnitude of the distribution, the share price could suffer once the shares are ex-dividend.
● Otherwise little else has changed: We see National Grid’s refocused portfolio of regulated businesses delivering a c7% CAGR in regulated asset value 2016/17E to 2019/20E. This supports its RPI-linked dividend growth target (which looks achievable), aided by a steady recovery in US returns thanks to ongoing rate filings. National Grid is a net beneficiary of sterling weakness against the dollar (its US profits modestly outweigh its US debt exposure)."

Barclays Capital today reaffirms its equal weight investment rating on National Grid PLC (LON:NG.) and set its price target at 1075p.

Results for the year ended 31 MARCH 2017

Operational Highlights
· Strong performance and significant strategic progress
· UK regulated efficiency and innovation generated customer savings of £460m over 4 years
· Sale of 61% of UK Gas Distribution business complete, announced £4bn return to shareholders
· Rates updated for downstate New York gas and Massachusetts Electric businesses
· RIIO mid-period regulatory review completed
· Further clarity on the UK System Operator role

Financial Highlights
· Total adjusted1 EPS of 73.0p
· Total adjusted EPS excluding timing of 66.1p, up 6%
· Total Group Return on Equity of 11.7% (2016: 12.3%)
· Significant total capital investment of £4.5bn, up 5% at constant currency
· Recommended full year dividend of 44.27p
· Strong balance sheet maintained

more.....

JP Morgan Cazenove Overweight 1,040.25 1,100.00 1,100.00 Reiterates

Deutsche Bank Hold 1,040.25 920.00 920.00 Retains

Barclays Capital Equal weight 1,040.25 1,075.00 1,075.00 Reiterates

StockMarketWire.com
National Grid said as a result of a share consolidation effective today its issued capital comprised 3.61bn ordinary shares, of which 173,239,075 were held as treasury shares and the remaining 3.44bn had voting rights.

HSBC today upgrades its investment rating on National Grid PLC (LON:NG.) to buy (from hold) and raised its price target to 1060p (from 1050p).

Berenberg Hold 947.30 1,050.00 1,050.00 Reiterates

UK energy regulator lowers bills for vulnerable homes

Trial to phase in hydrogen as fuel to begin in north-west

Credit Suisse today reaffirms its underperform investment rating on National Grid PLC (LON:NG.) and raised its price target to 860p (from 850p).

StockMarketWire.com
National Grid's adjusted profit before tax fell by 22% at actual exchange rates to £807 million in the six months to 30 September.

Excluding the impact of timing, adjusted profit before tax was up 1% to £916 million.

Operating and finance costs both increased over the year.

Adjusted operating profit fell from £1.4 billion to £1.3 billion, but excluding the impact of timing it rose by 4% to £1.37 billion.

UK Electricity Transmission adjusted operating profit excluding timing fell by 11%, but UK Gas Transmission, US Regulated and NG Ventures and other activities all registered gains of 25%, 19% and 4% respectively.

Capital investment increased by 7% to £2 billion in the first half.

Overall group performance is anticipated to remain in line with the expectations set out at the full year results announcement in May 2017.

John Pettigrew, chief executive, said: "We have delivered a solid financial performance in line with our expectations, made further progress to evolve our business and maintained a world class, safe and reliable service. Our focus on efficiency and innovation has reduced costs and generated increased savings for bill payers.

"We also invested a further £2bn in critical infrastructure during the period. Our improved performance in the US is encouraging, with this part of the business now representing an increasingly important part of our investment proposition. Having reshaped our portfolio in the UK, we continue to expect our electricity and gas transmission businesses to deliver high levels of performance.

"Our outlook for the year is unchanged, underpinned by our expectations for a stronger second half. We are focused on completing rate filings in the US, continuing proactive discussions with Ofgem ahead of the next regulatory settlement in 2021 and seeking new opportunities to grow the business and optimise our performance. We are confident that our strategy continues to create value for shareholders, delivering an attractive yield, and asset growth in the 5% to 7% range."

Jefferies comment:
Headline results. Reported EBIT was £1.26bn (3% below consensus). The miss appears to be in the UK electricity and gas transmission businesses (6% and 13% below consensus respectively), seemingly driven by lower base allowances and higher controllable costs. Reported EPS was 18.5p (including adverse timing effect of 1.9p), which was 5% below consensus. In addition to the miss at the EPS level, contributions from JVs also came in lower than expected (£75m vs. consensus of £109m).

Continued growth in US Regulated business. NG reported 6M EBIT of £433m in its US regulated business. The company is in ongoing discussions with the US regulator over the Niagara Mohawk rate case, and is confident of reaching a reasonable settlement soon, with new rates coming into effect by April 2018. In addition, NG is due to submit rate files for its Massachusetts Gas and Rhode Island Electric and Gas utilities later this month. New rates for Rhode Island Electric and Gas would be expected to come into effect by September 2018, and for Massachusetts Gas by October 2018. With these measures, in the US, NG aims to achieve 90% of the average allowed returns in 2017/18.

Capex remains on track for FY guidance. 6M group capex was £2bn, up 4% at constant currency. Of this, over half (£1.1bn) was invested into the US regulated business, and £672m into its UK electricity and gas transmission businesses. We highlight that NG remains on track to achieve its 2017/18 capex guidance of over £4bn (equally split between UK and US).

Dividend growth continues. The company also announced an interim dividend of 15.49p/share, which represents a 2.1% increase above last year's interim dividend.

FY guidance re-iterated. NG confirmed that it remains confident on delivering FY17/18 guidance. However, it highlighted that it expects financial performance to be significantly weighted to the second half, due to the seasonality of US regulated profits. Over the medium term, NG aims to grow its asset base 5-7%."

Credit Suisse today upgrades its investment rating on National Grid PLC (LON:NG.) to neutral (from underperform) and left its price target at 860p

JP Morgan Cazenove today reaffirms its overweight investment rating on National Grid PLC (LON:NG.) and cut its price target to 1040p (from 1060p).

Morgan Stanley today reaffirms its overweight investment rating on National Grid PLC (LON:NG.) and set its price target at 1100p.

StockMarketWire.com
National Grid said it was "very disappointed" by the UK energy regulator Ofgem's costing and pricing model for the Hinkley-Seabank transmission project.

The project is intended to allow for the safe connection of the planned Hinkley Point C nuclear power station to the grid.

"National Grid is very disappointed with the proxy competition proposal, which includes financial parameters proposed for the delivery of this complex and major infrastructure project," the company said.

"We have prepared for a number of financial scenarios, however we do not believe that the proposed ranges for cost-of-debt and cost-of-equity included in the consultation reflect either the actual cost of financing this project or the risk being taken for construction of this complex project."

"We also believe that Ofgem has significantly overestimated the potential consumer savings in their consultation."

National Grid said it intended to work constructively with Ofgem in the coming weeks and would submit its views to progress towards achieving "a fair and timely outcome for customers and investors".

However, the company said it would consider "all other options available to us if we are not able to progress this satisfactorily".

The HSB project was expected to have a total cost of around £650m, with the majority forecast spend by National Grid Electricity Transmission plc in the RIIO-T2 price control period from April 2021 onwards.

National Grid plc provides update on impact of US Tax Reform


National Grid provides an update on the expected impact of the US Tax Cuts and Jobs Act on the Group.

Overall, the US tax reform changes are significantly positive for our US customers and economically neutral for National Grid.

National Grid anticipates that there will be a non-cash tax credit of around $2 billion due to the revaluation of certain deferred tax balances. This credit will be reflected as an exceptional item and is expected to be returned to customers over a period of 20 to 30 years. There will be no other material impact on the results for the financial year ending 31 March 2018.

The full implications of the new legislation on earnings and cash flows are still being reviewed, and will depend on the outcome of discussions with regulators for each of our 14 regulated entities in the US. To date, this has been reflected in our Joint Proposal for Niagara Mohawk Electric and Gas, and our ongoing Massachusetts Gas and Rhode Island rate filings, which together represented 48% of the US rate base at 31 March 2017. The total annualised revenue increase for these companies is estimated to reduce by $130 million and will come into effect as these changes are adopted in new rates in FY19. The reduction in revenue will be offset by a corresponding reduction in the tax charge.

National Grid does not expect a material impact on the year ending 31 March 2019, but we expect to provide more detailed guidance at the full year results.

J. Murphy & Sons buys Carillion's UK power business

"It will take over Carillion’s position on National Grid’s (NG.L) overhead electricity lines, substation and underground cable framework contracts and Carillion employees will join Murphy, the company said."

Ofgem's RIIO-2 Framework Consultation

Ofgem today published their RIIO-2 Framework consultation document, in which they set out their proposed approach to the next gas and electricity transmission price control (RIIO-T2).

We note the wide range of options the consultation document contains and acknowledge the focus on long-term thinking for critical infrastructure, incentive outperformance opportunities for well-run companies and the continuing alignment of consumer and shareholder interests under the RIIO framework.

The RIIO-2 framework consultation document is another important step in the process leading to a new price control in April 2021. We will continue to work constructively with Ofgem over the next three years to achieve the best outcomes for all stakeholders. We will keep the market updated as the process moves forward.

National Grid Pre-Close Update to 2017/18 Technical Guidance
National Grid updates its 2017/18 technical guidance ahead of entering close period on 17 April 2018.

Underlying Group EBIT is expected to be in line with original guidance. Headline Group EBIT is expected to be lower due to the impact of major storms in on our US businesses. This is largely offset at the earnings level by benefits to finance costs and a lower effective tax rate.

US Storms
Our US businesses incurred major storm remediation costs of approximately £140 million, approximately 3p on Earnings Per Share (EPS). These costs are expected to be recovered in future periods and will be reported as timing in our full-year results in May.

Financing and tax
Finance costs are expected to benefit from gains of approximately £60m or 1.5p at the EPS level relating to the realisation of gains on investments in our insurance captive. The Group's tax charge is now expected to be approximately 24% (down from the previous expectation of around 27%), in part due to changes in profit mix and the lower US corporate tax rate following changes to US tax law.

Other timing impacts
Headline full-year results are expected to include US in-year timing over recoveries (before major storm costs) of approximately £135 million. This is expected to be partially offset by a UK in-year under recovery of approximately £30m. The net benefit to headline Group EPS attributable to timing is estimated to be 2p.

National Grid will publish its preliminary results for 2017/18 on Thursday 17 May 2018.

Agreement for the potential sale of remaining 25% interest in Cadent Gas

Citigroup today reaffirms its buy investment rating on National Grid PLC (LON:NG.) and cut its price target to 966p (from 1008p).

Credit Suisse comment today:
"We still see a small risk NG cuts the dividend at the start of the next UK price controls, starting April 2021. NG must deliver interconnectors on-time to be able to sustain the dividend. We update our model and make a -6% reduction to our 2020E EPS estimate on the sale of the final 25% of Cadent. Our TP rises to 865p/sh (from 850p) driven by higher US asset base growth."

StockMarketWire.com
National Grid said it is pleased that Ofgem's decision surrounding RIIO-2 Framework provides further clarity on the length of the price control from April 2021 and continues to put consumers and other stakeholders in a central role in the process.

The company reported it looks forward to continuing to work constructively with Ofgem and other stakeholders over the coming months to achieve the best possible outcome for all stakeholders.

Separately, Ofgem also published its final decision on the delivery model for the Hinkley-Seabank project (HSB) today, in which it chose the Competition Proxy model.

National Grid announced Ofgem's decision does not affect its commitment to delivering HSB to time and to quality as per our licence obligations.

The company said it will review the detailed decision by Ofgem and consider all of its options prior to Ofgem formally implementing the proposals into the licence later in the year or early 2019.

The HSB project is expected to have a total cost of around £650m, with the majority of forecast spend by National Grid Electricity Transmission in the RIIO-T2 price control period from April 2021 onwards.

JP Morgan Cazenove today reaffirms its overweight investment rating on National Grid PLC (LON:NG.) and raised its price target to 950p (from 870p).

Report for the period ended 30 September 2018

Highlights

· Maintained strong reliability and safety across all networks

· Decided to exercise Cadent 39% options; sale completion in June 2019 providing £2bn cash proceeds

· Reached major milestone in the US with all distribution companies under refreshed rates

· Approved £850m investment to proceed with Viking interconnector

· Launched UK cost efficiency and restructuring programme

Financial performance

· Underlying operating profit down 6% to £1.3bn, primarily from expected return of Gas Transmission allowances and US tax reform, partially offset by favourable legal settlements of £94m

· Underlying EPS of 19.7p, up 1.2p, reflecting a lower tax rate and reduced share count

· Statutory EPS (continuing) of 12.7p after exceptional charges: UK cost efficiency and restructuring programme £127m; Massachusetts Gas workforce contingency plan £97m

· Interim dividend 16.08p/share, up 3.8% in line with policy

· Capital investment £2.1bn, up 7%

USA investment notice https://www.moneyam.com/action/news/showArticle?id=6209798

Bills may soar after power row

StockMarketWire.com
Power utility National Grid said it was disappointed with consultation documents published by the UK regulator, claiming certain parameters made it harder to provide fair returns to shareholders.

National Grid said it was particularly disappointed with regulator Ofgem's cost of equity range.

The range did not appropriately reflect the level of risk borne by transmission network operators, National Grid said.

'In order to deliver the major capital programme required across our networks in a rapidly changing energy market, we need to ensure the regulatory framework also provides for fair returns to shareholders and enables us to continue to deliver world class networks for consumers,' the company said.

National Grid said it would need to work through what was a very detailed consultation document.

It planned to provide a detailed response in early 2019.

The consultation was expected to conclude in the second quarter of 2019, with the RIIO 2 price control commencing in April 2021.

National Grid has reached a deal with two Massachusetts Gas unions over employment terms and conditions, ending a six-month lockout. The agreement is for a five-and-a-half-year contract for 1,250 employees in the company's Massachusetts Gas business. Workers are expected to return to work later this month.

A strategic announcement https://www.moneyam.com/action/news/showArticle?id=6295848