UK’s National Grid Earnings Jumps 8% After Equity Raise

Wedoany.com Report-Nov 7, National Grid Plc earnings for the six months through September jumped 8% beating analyst expectations.

The utility posted earnings per share of 28.1 pence in the first half, up from 25.9 pence in the previous period and higher than the 26.9 pence forecast by analysts tracked by Bloomberg. National Grid successfully raised £7 billion ($9.1 billion) which it previously said was the largest in Europe outside the banking sector in 15 years.

National Grid builds and operates large parts of Britain’s electricity network. Expanding this infrastructure is key to the UK reaching it’s renewable goals and decarbonizing it’s energy system. The equity raise will help support a £60 billion investment program for networks in the UK and US over the next five years.

The company maintained its full year guidance expecting  “strong operational performance” and profit growth of around 10%, along with lower financing costs due to lower average net debt.

The company welcomed planning reform which was set out in the King’s Speech earlier this year. Large parts of National Grid’s upgrade program will see pylons built across the British countryside which has caused uproar and opposition in some communities. The government wants to make it harder for these projects to be blocked as it works towards it’s 2030 clean power goals of which grid upgrades are essential.