3rd Oct 2006 07:01
National Grid PLC03 October 2006 3 October 2006 National Grid close period trading update for the six months ending 30 September 2006 Continued strong earnings growth National Grid plc is today issuing its close period trading update ahead ofannouncing its interim results on Thursday 16 November 2006. We expect to deliver strong growth in profit before tax* and earnings* comparedto the first half of last year. We anticipate delivering higher income, principally driven by higher allowedrevenues in UK electricity transmission and a continued strong performance fromLNG storage and French interconnector capacity auctions. We have also commencedrecovery from the deferral account under our New York rate plans. We anticipatethat this higher income will more than offset increases in operating costs inthe UK and US that have been mainly driven by an increased workload and highernon-controllable costs. We expect this operating performance, together with an anticipated over recoveryof US commodity costs, to offset the projected decline in US stranded costrecoveries and the adverse impact of weather. Therefore we expect operatingprofit* to be in line with the same period last year. Due to lower financing costs this period, we anticipate strong growth in profitbefore tax* with an effective tax rate in line with last year, leading to strongearnings growth*. We forecast closing net debt of around £11.7 billion, excluding certainmark-to-market effects. * Results are measured on a Business Performance basis. Business Performanceresults are the primary financial performance measures that we use, being theresults for continuing operations before exceptional items and remeasurements.Remeasurements are non-cash movements in the carrying value of financialinstruments and of certain commodity contracts, that arise from changes inmark-to-market values or in exchange rates and are reflected in the incomestatement to the extent that hedge accounting is not achieved or is not fullyeffective. CONTACTS InvestorsAlexandra Lewis +44 (0)20 7004 3170 +44 (0)7768 554879 (m)Richard Smith +44 (0)20 7004 3172 +44 (0)7747 006321 (m)James Waite +44 (0)20 7004 3171 +44 (0)7977 440902 (m) MediaClive Hawkins +44 (0)20 7004 3147 +44 (0)7836 357173 (m) Citigate Dewe Rogerson +44 (0)20 7836 9571Anthony Carlisle +44 (0)7973 611888 (m) Cautionary statement This announcement contains certain statements that are neither reportedfinancial results nor other historical information. These statements areforward-looking statements within the meaning of Section 27A of the SecuritiesAct of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,as amended. These statements include information with respect to National Grid'sfinancial condition, National Grid's results of operations and businesses,strategy, plans and objectives. Words such as "anticipates", "expects","intends", "plans", "believes", "seeks", "estimates", "may", "will", "continue","project" and similar expressions, as well as statements in the future tense,identify forward-looking statements. These forward-looking statements are notguarantees of National Grid's future performance and are subject to assumptions,risks and uncertainties that could cause actual future results to differmaterially from those expressed in or implied by the forward-looking statements.Many of these assumptions, risks and uncertainties relate to factors that arebeyond National Grid's ability to control or estimate precisely, such as delaysin obtaining, or adverse conditions contained in, regulatory approvals andcontractual consents, including those required to complete the proposedacquisition of KeySpan when or as planned, unseasonable weather affecting thedemand for electricity and gas, competition and industry restructuring, changesin economic conditions, currency fluctuations, changes in interest and taxrates, changes in energy market prices, changes in historical weather patterns,changes in laws, regulations or regulatory policies, developments in legal orpublic policy doctrines, the impact of changes to accounting standards andtechnological developments. Other factors that could cause actual results todiffer materially from those described in this announcement include the abilityto integrate the businesses relating to announced acquisitions with our existingbusiness and realise the expected synergies from such integration, theavailability of new acquisition opportunities and the timing and success offuture acquisition opportunities, the impact of the sales of businesses byNational Grid, the failure for any reason to achieve reductions in costs or toachieve operational efficiencies, the failure to retain key management, thebehaviour of UK electricity market participants on system balancing, the timingof amendments in prices to shippers in the UK gas market, the performance ofNational Grid's pension schemes and the regulatory treatment of pension costs,and any adverse consequences arising from outages on or otherwise affectingenergy networks, including gas pipelines, owned or operated by National Grid.For a more detailed description of some of these assumptions, risks anduncertainties, together with any other risk factors, please see National Grid'sfilings with and submissions to the US Securities and Exchange Commission (the"SEC") (and in particular the "Risk Factors" and "Operating and FinancialReview" sections in its most recent Annual Report on Form 20-F and the "RiskFactors" section in its Registration Statement on Form F-3 filed with the SEC on28 June 2006). Except as may be required by law or regulation, National Gridundertakes no obligation to update any of its forward-looking statements. Theeffects of these factors are difficult to predict. New factors emerge from timeto time and National Grid cannot assess the potential impact of any such factoron its activities or the extent to which any factor, or combination of factors,may cause results to differ materially from those contained in anyforward-looking statement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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