First Read: UK Utilities "Thoughts given potential changes" Freshney

研报英文原文证据摘录

First Read: UK Utilities "Thoughts given potential changes" Freshney

e supply chain is a risk. Prolonged outages and subsequent

power buybacks are other risks that the company faces.

National Grid:

National Grid runs regulated energy delivery networks in both the US and the UK. The UK is

electricity transmission and distribution. The US is electricity and gas distribution, and

electricity transmission. A key risk is from the actions of regulators in either country, which can

impact prices, returns and valuations. National Grid is responsible for delivering essential

energy services, so is at risk from operational failings, which can have a financial or

reputational impact. Our PT is based on a SOTP approach including a separate EV-RAB

premium for the US and the UK based upon a DCF analysis.

The main drivers of the Utilities sector include: commodities, generation margins, demand

evolution, regulatory changes, M&A, regulation, government policy, credit conditions and

currency movements. Any adverse change in these would modify our view on these stocks.

Orsted A/S:

There are several key uncertainties that may affect the future earnings growth and returns of

the company, which could also drive our valuation, including: (1) Interest rates; (2) Operating

and technology risk; (3) Growth opportunities; (4) Political risk; (5) Commodities; and (6)

Other operating and commercial factors. Our PT is based on a SOTP approach using a DCF

with 6.3% WACC.

Utilities face a wide range of commercial, technical, operating, regulatory and political or

policy risks which can be hard to assess completely, including the risk of adverse

developments in the framework for regulated utility network as well as commodity and

regulatory risk in power generation, retail and other areas.