18th Jun 2020 08:46
(Alliance News) - National Grid PLC on Thursday reported annual results below market expectations and said it expects earnings in the year ahead to be hurt by the coronavirus pandemic.
The power transmission and distribution company reported revenue in the year to March 31 down 2.6% to GBP14.54 billion from GBP14.93 billion, while pretax profit fell 5% to GBP1.75 billion from GBP1.84 billion.
The firm took a GBP117 million provision for bad debts in the period, and said it expects a "slightly bigger" impact in the financial year due ahead to the weaker economic backdrop.
Underlying pretax profit, meanwhile, was 1% higher year-on-year, at GBP2.49 billion versus GBP2.47 billion a year prior. The market had expected National Grid to report underlying pretax profit of GBP2.55 billion.
National Grid will payout a full-year dividend of 48.57 pence, up 2.6% on the year before, but less than the 48.70p that the market had expected.
Looking out, National Grid expects Covid-19 to hit underlying operating profit by GBP400 million in the year ahead amid additional costs in the UK and higher bad debt charges in the US.
For the recently-ended financial year, underlying operating profit came in 1% higher at GBP3.45 billion versus GBP3.43 billion a year ago. Company-compiled consensus figures pointed to underlying operating profit of GBP3.62 billion.
"Whilst Covid-19 will impact our financial performance in financial 2021, we expect this to be largely recoverable over future years and therefore anticipate no material economic impact on the group in the long-term. We continue to target asset growth of 5% to 7% in the near term and with an efficient balance sheet that underpins asset and dividend growth, the group is well positioned to create value for shareholders," said Chief Executive John Pettigrew.
National Grid shares were trading 1.3% lower in London on Thursday morning at 939.00p each.
By Evelina Grecenko; [email protected]
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