National Grid Invests $1.75B for 35% Stake in Joulent
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: seekingalpha
- Strategic Investment: National Grid (NGG) has agreed to invest $1.75 billion for a 35% stake in Joulent, valuing the company at $5 billion, which signifies NGG's expansion into the rapidly growing Texas power market.
- Project Advancement: This investment will facilitate the development of Joulent's foundational project, Project Kilby, a 2.67 GW gas-fired power facility that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement with Chevron (CVX).
- Power Supply Agreement: The Kilby project has secured critical equipment, including GE Vernova turbines, and is set to start delivering power by 2028, ensuring a stable electricity supply for the data center.
- Capital Investment Plan: This investment is incremental to National Grid's five-year capital investment program of at least £70 billion (～$90 billion) through 2031, reflecting the company's strong confidence in future growth, particularly in the gas-rich Texas market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NGG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NGG
Wall Street analysts forecast NGG stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 82.590
Low
85.50
Averages
85.50
High
85.50
Current: 82.590
Low
85.50
Averages
85.50
High
85.50
About NGG
National Grid plc is a United Kingdom-based energy company. The Company's principal activities involve the transmission and distribution of electricity in Great Britain and of electricity and gas in the northeastern United States. Its segments include UK Electricity Transmission, UK Electricity Distribution, New England, New York and National Grid Ventures. The UK Electricity Transmission segment includes the high-voltage electricity transmission networks in England and Wales. The UK Electricity Distribution segment includes electricity distribution networks of NGED in the East Midlands, West Midlands and South West of England and South Wales. The New England segment includes electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New England. The New York segment includes electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New York.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
National Grid Invests $1.75B for 35% Stake in Joulent
- Strategic Investment: National Grid (NGG) has agreed to invest $1.75 billion for a 35% stake in Joulent, valuing the company at $5 billion, which signifies NGG's expansion into the rapidly growing Texas power market.
- Project Advancement: This investment will facilitate the development of Joulent's foundational project, Project Kilby, a 2.67 GW gas-fired power facility that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement with Chevron (CVX).
- Power Supply Agreement: The Kilby project has secured critical equipment, including GE Vernova turbines, and is set to start delivering power by 2028, ensuring a stable electricity supply for the data center.
- Capital Investment Plan: This investment is incremental to National Grid's five-year capital investment program of at least £70 billion (~$90 billion) through 2031, reflecting the company's strong confidence in future growth, particularly in the gas-rich Texas market.
See More
National Grid Ventures Invests $1.75 Billion in Joulent Stake
- Investment Scale: National Grid Ventures is investing $1.75 billion for a 35% stake in Joulent LLC, targeting the growing electricity demand from data centers and other energy-intensive industries in the U.S., indicating the company's strategic focus on future energy markets.
- Project Collaboration: This investment will support the Kilby project, a 2.67-gigawatt power facility being developed in Texas by Joulent and Chevron, expected to start supplying power to a Microsoft data center in 2028, ensuring a long-term stable electricity supply.
- Technology Integration: Joulent's solutions include gas generation, battery storage, renewable energy integration, and specialized grid connections aimed at accelerating power availability for large-load customers, further enhancing National Grid's competitiveness in the energy market.
- Financial Strategy: National Grid stated that this investment will not affect its existing £70 billion capital investment program and will be funded using available balance sheet capacity, demonstrating its strategic decision-making capability in long-term infrastructure investments.
See More
Europe's Heatwave Sparks Investment Opportunities
- Climate Change Impact: Multiple European countries are experiencing record heatwaves with temperatures exceeding 40 degrees Celsius, disrupting power supplies and closing schools, which directly affects the economy and increases the demand for climate adaptation and energy efficiency investments.
- Insurance Sector Opportunities: Ninety One's Global Sustainable Equity Fund is focusing on insurance companies like Aon and Intact Financial, believing that climate change will drive structural growth in the insurance industry, particularly for firms offering climate risk management solutions.
- Energy Transition Trends: As temperatures rise, companies like Johnson Controls and Siemens are seeing a surge in demand for HVAC products, with modern heat pumps serving as effective cooling devices to meet heightened summer demands.
- Grid Modernization Needs: The surge in electricity demand is putting pressure on aging power infrastructure, with companies like ABB, Schneider Electric, and Siemens poised to benefit from investments in grid modernization, providing essential equipment to enhance power supply capabilities.
See More
National Grid Celebrates 17-Year Partnership with ISN
- Partnership History: Since 2009, National Grid has partnered with ISN, leveraging the ISNetworld platform to streamline contractor management processes and enhance jobsite safety across New England and New York, ensuring safe and reliable energy delivery to millions of customers.
- Safety Management Tools: Utilizing ISNetworld's RAVS 360™ tool, National Grid gains insights into the implementation of contractors' health, safety, and environmental programs, enabling them to identify strengths and areas for improvement, thereby enhancing contractor safety management capabilities.
- Continuous Improvement: National Grid shares learnings with industry peers through its membership in the Edison Electric Institute and American Gas Association, continuously improving the effectiveness of work planning and execution to ensure contractor performance in safety and sustainability.
- Strategic Significance: ISN's support allows National Grid to foster a culture of learning and collaboration in contractor management, strengthening risk identification and decision-making capabilities, which ultimately leads to higher safety standards and reliability in future energy delivery.
See More
National Grid Reports Slightly Below Expected Annual Profit
- Annual Profit Performance: National Grid (NGG) reported an adjusted operating profit of £5.68 billion (~$7.68 billion) for the year ending March 31, falling short of the company-compiled consensus estimate of £5.75 billion, reflecting increased costs from storm damage repairs, although its U.S. business profit rose 7.4% to £636 million.
- Revenue Decline: The company's total revenue was £17.6 billion, down 3.8% year-over-year, indicating revenue pressure amid a high-cost environment that could impact future investment capabilities.
- Investment Plans: National Grid is embarking on its largest investment program in history, planning to spend at least £70 billion over the next five years to modernize and expand energy infrastructure across the U.K. and Northeast U.S., demonstrating confidence in future growth.
- Debt Situation: As of the reporting period, National Grid's net debt reached £44.2 billion, exceeding market expectations of £43.3 billion, primarily due to dollar strengthening and timing effects from commodity costs, although overall results were in line with analyst expectations.
See More
National Grid Reports FY 2023 Performance
- Revenue Performance: National Grid reported a revenue of £17.69 billion for FY 2023, reflecting a 3.8% year-over-year decline, indicating challenges in the market environment while demonstrating the company's ability to maintain stable operations amid adversity.
- Record Capital Investment: The company achieved a record capital investment of £11.6 billion in FY 2023, with expectations to reach £9.8 billion in 2024/25, driving asset growth to 10.9%, showcasing the company's strong commitment to future development.
- Earnings Per Share Growth: Underlying EPS stood at 78.0p, up 8% at constant currency, despite impacts from divestments, storm costs, and an increased share count, reflecting resilience in operational performance.
- Dividend Policy: A recommended final dividend of 32.14p results in a total dividend of 48.49p, up 3.8% year-over-year, aligning with the company's policy to increase dividends in line with UK CPIH, demonstrating a commitment to shareholder returns.
See More
National Grid Invests $1.75B for 35% Stake in Joulent
- Strategic Investment: National Grid (NGG) has agreed to invest $1.75 billion for a 35% stake in Joulent, valuing the company at $5 billion, which signifies NGG's expansion into the rapidly growing Texas power market.
- Project Advancement: This investment will facilitate the development of Joulent's foundational project, Project Kilby, a 2.67 GW gas-fired power facility that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement with Chevron (CVX).
- Power Supply Agreement: The Kilby project has secured critical equipment, including GE Vernova turbines, and is set to start delivering power by 2028, ensuring a stable electricity supply for the data center.
- Capital Investment Plan: This investment is incremental to National Grid's five-year capital investment program of at least £70 billion (~$90 billion) through 2031, reflecting the company's strong confidence in future growth, particularly in the gas-rich Texas market.
See More
National Grid Ventures Invests $1.75 Billion in Joulent Stake
- Investment Scale: National Grid Ventures is investing $1.75 billion for a 35% stake in Joulent LLC, targeting the growing electricity demand from data centers and other energy-intensive industries in the U.S., indicating the company's strategic focus on future energy markets.
- Project Collaboration: This investment will support the Kilby project, a 2.67-gigawatt power facility being developed in Texas by Joulent and Chevron, expected to start supplying power to a Microsoft data center in 2028, ensuring a long-term stable electricity supply.
- Technology Integration: Joulent's solutions include gas generation, battery storage, renewable energy integration, and specialized grid connections aimed at accelerating power availability for large-load customers, further enhancing National Grid's competitiveness in the energy market.
- Financial Strategy: National Grid stated that this investment will not affect its existing £70 billion capital investment program and will be funded using available balance sheet capacity, demonstrating its strategic decision-making capability in long-term infrastructure investments.
See More
Europe's Heatwave Sparks Investment Opportunities
- Climate Change Impact: Multiple European countries are experiencing record heatwaves with temperatures exceeding 40 degrees Celsius, disrupting power supplies and closing schools, which directly affects the economy and increases the demand for climate adaptation and energy efficiency investments.
- Insurance Sector Opportunities: Ninety One's Global Sustainable Equity Fund is focusing on insurance companies like Aon and Intact Financial, believing that climate change will drive structural growth in the insurance industry, particularly for firms offering climate risk management solutions.
- Energy Transition Trends: As temperatures rise, companies like Johnson Controls and Siemens are seeing a surge in demand for HVAC products, with modern heat pumps serving as effective cooling devices to meet heightened summer demands.
- Grid Modernization Needs: The surge in electricity demand is putting pressure on aging power infrastructure, with companies like ABB, Schneider Electric, and Siemens poised to benefit from investments in grid modernization, providing essential equipment to enhance power supply capabilities.
See More
National Grid Celebrates 17-Year Partnership with ISN
- Partnership History: Since 2009, National Grid has partnered with ISN, leveraging the ISNetworld platform to streamline contractor management processes and enhance jobsite safety across New England and New York, ensuring safe and reliable energy delivery to millions of customers.
- Safety Management Tools: Utilizing ISNetworld's RAVS 360™ tool, National Grid gains insights into the implementation of contractors' health, safety, and environmental programs, enabling them to identify strengths and areas for improvement, thereby enhancing contractor safety management capabilities.
- Continuous Improvement: National Grid shares learnings with industry peers through its membership in the Edison Electric Institute and American Gas Association, continuously improving the effectiveness of work planning and execution to ensure contractor performance in safety and sustainability.
- Strategic Significance: ISN's support allows National Grid to foster a culture of learning and collaboration in contractor management, strengthening risk identification and decision-making capabilities, which ultimately leads to higher safety standards and reliability in future energy delivery.
See More
National Grid Reports Slightly Below Expected Annual Profit
- Annual Profit Performance: National Grid (NGG) reported an adjusted operating profit of £5.68 billion (~$7.68 billion) for the year ending March 31, falling short of the company-compiled consensus estimate of £5.75 billion, reflecting increased costs from storm damage repairs, although its U.S. business profit rose 7.4% to £636 million.
- Revenue Decline: The company's total revenue was £17.6 billion, down 3.8% year-over-year, indicating revenue pressure amid a high-cost environment that could impact future investment capabilities.
- Investment Plans: National Grid is embarking on its largest investment program in history, planning to spend at least £70 billion over the next five years to modernize and expand energy infrastructure across the U.K. and Northeast U.S., demonstrating confidence in future growth.
- Debt Situation: As of the reporting period, National Grid's net debt reached £44.2 billion, exceeding market expectations of £43.3 billion, primarily due to dollar strengthening and timing effects from commodity costs, although overall results were in line with analyst expectations.
See More
National Grid Reports FY 2023 Performance
- Revenue Performance: National Grid reported a revenue of £17.69 billion for FY 2023, reflecting a 3.8% year-over-year decline, indicating challenges in the market environment while demonstrating the company's ability to maintain stable operations amid adversity.
- Record Capital Investment: The company achieved a record capital investment of £11.6 billion in FY 2023, with expectations to reach £9.8 billion in 2024/25, driving asset growth to 10.9%, showcasing the company's strong commitment to future development.
- Earnings Per Share Growth: Underlying EPS stood at 78.0p, up 8% at constant currency, despite impacts from divestments, storm costs, and an increased share count, reflecting resilience in operational performance.
- Dividend Policy: A recommended final dividend of 32.14p results in a total dividend of 48.49p, up 3.8% year-over-year, aligning with the company's policy to increase dividends in line with UK CPIH, demonstrating a commitment to shareholder returns.
See More
