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Report for the period ended |
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30 September 2020 |
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Highlights
• Delivered safe, reliable networks throughout the COVID-19 pandemic
• Submitted comprehensive response to Ofgem RIIO-2 draft determination consultation
• Progressed a way forward on addressing downstate New York gas supply constraints
• Published our first Responsible Business Charter, setting updated ESG targets for 2030
• Continued positive discussions with NY PSC on new rates for KEDNY-KEDLI
• Filed for new rates for Niagara Mohawk
• Filing for Massachusetts Gas on 13 November
• Construction of three interconnectors remains on track
Financial Performance
• Underlying operating profit down 12% to £1.1bn
• Statutory operating profit up 13% to £1.1bn
• Underlying EPS down 14% to 17.2p reflecting higher COVID-19 related costs including US bad debts, storm costs, partly offset by improved UK Gas Transmission and US revenues
• Statutory EPS of 17.1p, up 51% reflecting mark-to-market remeasurement gains
• Capital investment of £2.6bn down 6%; stronger investment offset by the non-recurrence of Geronimo acquisition
• Interim dividend 17.0p/share in line with policy (16.57p/share in prior period)
• FY21 outlook: assumed COVID-19 underlying operating profit impact of approximately £400m
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Financial Summary Six months ended 30 September – continuing operations |
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Statutory results |
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Underlying1 |
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Unaudited |
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2020 |
2019 |
% change |
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2020 |
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2019 |
% change |
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Operating profit (£m) |
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1,135 |
1,003 |
13 |
% |
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1,147 |
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1,301 |
(12) |
% |
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Profit before tax (£m) |
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720 |
404 |
78 |
% |
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717 |
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785 |
(9) |
% |
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Earnings per share (p) |
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17.1 |
11.3 |
51 |
% |
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17.2 |
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20.0 |
(14) |
% |
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Capital investment (£m)2 |
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2,560 |
2,722 |
(6) |
% |
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2,560 |
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2,722 |
(6) |
% |
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1 'Underlying' represents statutory results excluding exceptional items, remeasurements and timing. Further detail and definitions for all alternative performance measures are provided on page 44.
2 Includes additions to PP&E, intangibles, contributions to joint ventures and associates (excluding St William), investment in National Grid Partners and total consideration for the National Grid Renewables LLC (previously known as Geronimo) acquisition.
John Pettigrew
Chief Executive
“In the first half of this year we delivered strong operational performance whilst managing the impact of COVID-19 costs on our financial results. We have continued to ensure safe, reliable networks and have delivered on our investment programme through the pandemic. With the launch of our Responsible Business Charter, we have underlined our commitment to our environmental goals, whilst supporting employees and communities across our jurisdictions.
In the US, we have progressed a way forward on addressing gas constraints in downstate New York, and we continue positive discussions with the PSC on new rates for KEDNY and KEDLI. In the UK, we submitted a robust response to Ofgem's draft determinations, and have continued to work closely with the regulator to provide further evidence in support of our RIIO-2 business plans.
Looking ahead, the group is well positioned to manage the ongoing COVID-19 uncertainty, and our full-year financial guidance is unchanged. Our focus remains on agreeing regulatory settlements, and to help shape the energy transition as we look to enable decarbonisation of power, transport and heat.”