National Grid Plc (LON:NG.), today announced its half year results.
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%
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Financial summary Six months ended 30 September – continuing operations (excluding Cadent)
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Statutory results |
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Underlying1 |
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Unaudited |
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2018 £m |
2017 £m |
% change |
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2018 £m |
2017 £m |
% change |
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Operating profit |
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1,017 |
1,274 |
(20) |
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1,285 |
1,368 |
(6) |
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Profit before tax |
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522 |
780 |
(33) |
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816 |
846 |
(4) |
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Earnings per share |
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12.7p |
17.7p |
(28) |
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19.7p |
18.5p |
6 |
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Capital investment |
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2,130 |
2,000 |
7 |
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2,130 |
2,000 |
7 |
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John Pettigrew
Chief Executive of National Grid
“We have continued to make strong operational progress in the first six months whilst maintaining excellent levels of safety and reliability. Investment in our networks increased to £2.1bn, including further progress on our three major interconnector projects. In the UK, we are implementing a cost efficiency and restructuring programme to ensure that we continue to drive outperformance for customers and shareholders. In the US, we have completed a full refresh of our rate plans so that all our distribution businesses are now operating under new rates, a major milestone which will support our continued growth. We continue to seek a fair settlement on union negotiations in Massachusetts.
“Strategically, we have made good progress with the decision to exercise options for the sale of our remaining 39% share in Cadent and the final investment decision on the Viking interconnector. Looking forward, National Grid is well positioned for the ongoing energy transition and we are on track to achieve asset growth at the top end of our 5-7% range in the medium term.”
