12th Nov 2020 08:56
(Alliance News) -Â UK power lines operator National Grid PLC on Thursday reported an increase in pretax profit despite taking a hit from the pandemic in the first half of its financial year.
Revenue for the six months to the end of September amounted to GBP6.54 billion, up 4.0% from GBP6.29 billion a year ago. Pretax profit increased 78% to GBP720 million from GBP404 million.
Underlying operating profit at constant currency fell 12% to GBP1.15 billion from GBP1.30 billion last year. During the half, National Grid said it estimates that the pandemic hit underlying operating profit by GBP117 million year-on-year in three areas: the first being an increase in its bad debt provision of around GBP56 million, the second a shortfall of revenue under existing regulatory agreements of GBP41 million, and "net direct costs" of GBP20 million.
"We continue to expect a full-year impact from Covid-19 of around GBP400 million to underlying operating profit given the seasonal nature of our US regulated business," said National Grid.
However, the company added, it expects to be able to recover the majority of its US Covid-19 related costs through regulatory mechanisms.
The firm declared an interim dividend of 17.0 pence per share, up 3.0% from 16.57p a year ago.
"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," said Chief Executive John Pettigrew.
Pettigrew added: "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."
Shares in National Grid were down 1.4% at 947.60 pence in London early Thursday.
By Lucy Heming;Â [email protected]
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