2nd Apr 2020 08:51
(Alliance News) - National Grid PLC on Thursday guided for earnings to meet expectations, though cautioned dividends will take into account the Covid-19 health crisis.
For its year ended March 31, the power company sees underlying earnings meeting guidance given in November last year, excluding any Covid-19 impact.
National Grid has not yet seen any material financial impact from the pandemic, it said, but it is starting to see some delays and disruption to its ongoing capital programme.
In the US, National Grid has suspended debt collection and customer termination work, which will increase bad debt levels.
"In determining the final dividend for financial 2020 the board will, as always, take into account expected business performance and regulatory developments, including an assessment of the impact of Covid-19," said National Grid.
National Grid stopped short Thursday of withdrawing dividends, something many blue-chip peers including Centrica PLC have done to preserve cash amid the crisis.
National Grid does expect higher-than-guided operating costs in the US due to storms, but these will be offset by better National Grid Ventures performance and lower finance costs.
In a separate statement on Thursday, National Grid made Badar Khan's interim appointment as president of the North America business permanent.
National Grid will be releasing annual results in mid-June, delayed from the previously planned middle of May.
Shares were 3.1% lower on Thursday in early trade in London at 883.80 pence each.
By George Collard; [email protected]
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