Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

National Grid shares: What to expect from its 20/21 full year results

The National Grid share price is back under the microscope this week as its 2020/21 full year results are due to be published on 20 May. What is the latest consensus among analysts and what does the future hold for National Grid?

  • Closing net debt estimated at £30.9bn
  • Pre-tax profit of £2.3bn forecast
  • £7.8bn deal for Western Power Distribution to complete by Q1 2022
  • Ready to trade the National Grid share price? Open an account today

What do analysts anticipate for National Grid’s 2020/21 full year results?

National Grid will be publishing its 2020/21 full year results on 20 May. In anticipation of this, National Grid published its analyst consensus on 17 May. The consensus, based on projected earnings made by various research analysts who cover National Grid, anticipates a £2.3bn pre-tax profit for 2020/21 and a net profit of £1.835bn.

Almost half of its underlying income during the Covid-19 pandemic is thought to have been derived from the US regulated market, totalling an estimated £1.522bn. That’s followed by £1.092bn from the UK electricity transmission marketplace and £430m from the UK gas transmission marketplace.

Has National Grid’s looming acquisition of Western Power Distribution strengthened its hand?

Its gas assets generate over 13% of National Grid’s estimated overall income. It’s no surprise to see that the firm plans to sell its key gas assets following its impending £7.8bn acquisition of the UK’s biggest electricity distributor, Western Power Distribution (WPD).

National Grid confirmed that its purchase of the US-owned WPD is part of its intention to focus exclusively on electricity. Its majority stake in National Grid Gas PLC, the owner of the UK’s gas transmission system, looks set to be sold in the coming months.

The deal to acquire WPD alone will see National Grid assets shift from 60% to 70% electricity-focused. This is something the company has needed to adopt given the UK’s shift to greener, more sustainable power sources.

John Pettigrew, CEO, National Grid, described the deal for WPD as a ‘one-off opportunity to acquire a significant scale position in UK electricity distribution’.

How have National Grid shares reacted to its Ofgem Penalty Notice?

On 12 May, Ofgem revealed its final decision on its Penalty Notice issued to National Grid for inaccurate and unbiased electricity demand forecasts covering the period April-July and October 2017.

Ofgem confirmed National Grid will be fined £1.5m having been found in breach of Standard Condition C16 of its transmission license. Although Ofgem revealed it did not believe National Grid had deliberately contravened its obligations, it was criticised for its lack of compliance controls.

Given that Ofgem’s findings suggested the breach was unintentional, the Penalty Notice has not had a negative impact on National Grid shares. Since 12 May, the National Grid share price has risen from £9.19 to highs of £9.36 on 14 May, before contracting to £9.21 during this morning’s trading session – still 0.2% up since Ofgem’s final decision.

Go long or short with the National Grid share price today

Take your position on UK shares for just a small initial deposit with spread bets or CFDs. Spread bets are completely tax-free, while CFDs are free from stamp duty.1 You can also buy and take ownership of UK shares for just £3 with us.2

Open an account to start trading or investing in UK shares.

1 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

2 Deal three times or more in the previous month to qualify for our best rate.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false"> liveprices.javascriptrequired


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.