National Grid Plc - Half year results for period ended 30 Sept 2019

National Grid Plc

Report for the period ended

30 September 2019

 

Highlights

  • Announcing today a new target to achieve net zero for own emissions by 2050
  • Regulatory progress in US and UK:
  • Multi-year agreement for Massachusetts Electric
  • Draft RIIO-2 business plans submitted
  • Welcomed Ofgem's "minded-to" position on Hinkley-Seabank to move away from Competition Proxy Model
  • Cost efficiency programme on track: £50m in the UK and $30m in the US in 2019/20
  • Construction of three interconnectors on target
  • Completed US Geronimo acquisition
  • Received £2bn proceeds for sale of final Cadent stake

Financial performance

  • Underlying operating profit up 1% to £1.3bn due to increase in US Regulated profits (statutory operating profit down 1% to £1.0bn reflecting adverse timing)
  • Underlying EPS up 2% to 20.0p, due to a US tax settlement relating to prior periods
  • Statutory EPS of 11.3p, down 11% reflecting adverse mark to market remeasurements
  • Capital investment £2.7bn up 28% driven by increase in US capital spend and £0.2bn Geronimo acquisition
  • Interim dividend 16.57p/share, in line with policy

 


 

 

Financial summary

Six months ended 30 September - continuing operations

 

 

 

Statutory results

 

Underlying[1]

 

Unaudited

 

2019

2018

% change

 

2019

2018

% change

 

Operating profit (£m)

 

1,003

1,017

(1)

 

1,301

1,285

1

 

Profit before tax (£m)

 

404

522

(23)

 

785

816

(4)

 

Earnings per share (p)

 

11.3

12.7

(11)

 

20.0

19.7

2

 

 

 

 

 

 

 

 

 

 

 

Capital investment2 (£m)

 

2,722

2,130

28

 

2,722

2,130

28

 

 

 

 

 

 

 

 

 

 

 


John Pettigrew, 
Chief Executive said:

"In the first half of this year we have delivered solid financial performance and continued to deliver strong organic growth at the top end of the 5 to 7% range. We also made good progress on our strategic priorities, including agreeing a multi-year, forward rate case in Massachusetts Electric, submitting our draft business plans for RIIO-2 in the UK and completed our acquisition of Geronimo. In the second half, we are progressing our priorities across the Group including addressing the gas supply constraint in downstate New York.

Today's announcement that we are increasing the Group's own emissions reduction target from 80% to net zero by 2050 underlines our commitment to lead the industry towards a cleaner energy future. This objective will be supported by work in other areas, such as offering further energy efficiency programmes for our US customers, proposals for renewable natural gas and hydrogen blending programmes."