3 October 2024
National
Grid plc
Pre-Close
Update ahead of 2024/25 Half Year Results
National Grid today issues a
pre-close update for the six months ended 30 September 2024 ahead
of announcing half year results on 7 November. Overall, the group's
performance is in line with our expectations and, as usual,
underlying EPS is expected to be weighted to the second half of the
year.
Contribution to operating profit is expected to be
consistent with historical periods:
· In
UK Electricity Transmission and UK Electricity
Distribution, we anticipate operating
profit to be broadly evenly split across the year. We expect an
additional c.£70 million contribution from the Electricity System
Operator compared to guidance, reflecting ownership and held
for sale accounting treatment up to 30 September 2024.
· In
our US regulated businesses, operating
profits are expected to be
weighted to the second half. This includes our New York business where operating profit weighting is expected
to be more typical of historical trends than the same period last
year (H1 of FY24 was impacted by an environmental provision charge).
· In NG
Ventures we anticipate a
roughly 40:60 weighting for
operating profit between the first and second
half.
We expect a more even split of
interest costs between the first and second half of the year and a
weighted average number of shares for the first half of 4,526
million, taking into account the effect of the rights issue on net
debt and our issued share capital.
Notes:
'Underlying' represents statutory
results from continuing operations, but excluding exceptional
items, remeasurements, major storm costs (when greater than $100
million), timing and the impact on underlying results of deferred
tax in UK Electricity Transmission and UK Electricity
Distribution.
Enquiries and contacts
Investors and Analysts:
Angela Broad
+44 (0) 7825 351 918
Tom Edwards
+44 (0) 7976 962 791
Media:
Dan Roberts,
Brunswick
+44 (0) 207
404 5959
CAUTIONARY STATEMENT
This announcement contains certain
statements that are neither reported financial results nor other
historical information. These statements are forward-looking
statements within the meaning of Section 27A of the Securities Act
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's (the Company) financial condition, its
results of operations and businesses, strategy, plans and
objectives. Words such as 'aims', 'anticipates', 'expects',
'should', 'intends', 'plans', 'believes', 'outlook', 'seeks',
'estimates', 'targets', 'may', 'will', 'continue', 'project' and
similar expressions, as well as statements in the future tense,
identify forward looking statements. This document also references
climate-related targets and climate-related risks which differ from
conventional financial risks in that they are complex, novel and
tend to involve projection over long term scenarios which are
subject to significant uncertainty and change. These
forward-looking statements are not guarantees of National Grid's
future performance and are subject to assumptions, risks and
uncertainties that could cause actual future results to differ
materially from those expressed in or implied by such
forward-looking statements or targets. Many of these assumptions,
risks and uncertainties relate to factors that are beyond National
Grid's ability to control, predict or estimate precisely, such as
changes in laws or regulations and decisions by governmental bodies
or regulators, including those relating to current and upcoming
price controls in the UK and rate cases in the US, as well as the
future of system operation in the UK; the timing of construction
and delivery by third parties of new generation projects requiring
connection; breaches of, or changes in, environmental, climate
change and health and safety laws or regulations, including
breaches or other incidents arising from the potentially harmful
nature of its activities; network failure or interruption, the
inability to carry out critical non-network operations and damage
to infrastructure, due to adverse weather conditions including the
impact of major storms as well as the results of climate change,
due to counterparties being unable to deliver physical commodities;
reliability of and access to IT systems, including or due to the
failure of or unauthorised access to or deliberate breaches of
National Grid's systems and supporting technology; failure to
adequately forecast and respond to disruptions in energy supply;
performance against regulatory targets and standards and against
National Grid's peers with the aim of delivering stakeholder
expectations regarding costs and efficiency savings, as well as
against targets and standards designed to support its role in the
energy transition; and customers and counterparties (including
financial institutions) failing to perform their obligations to the
Company. Other factors that could cause actual results to differ
materially from those described in this announcement include
fluctuations in exchange rates, interest rates and commodity price
indices; restrictions and conditions (including filing
requirements) in National Grid's borrowing and debt arrangements,
funding costs and access to financing; regulatory requirements for
the Company to maintain financial resources in certain parts of its
business and restrictions on some subsidiaries' transactions such
as paying dividends, lending or levying charges; the delayed timing
of recoveries and payments in National Grid's regulated businesses,
and whether aspects of its activities are contestable; the funding
requirements and performance of National Grid's pension schemes and
other post-retirement benefit schemes; the failure to attract,
develop and retain employees with the necessary competencies,
including leadership and business capabilities, and any significant
disputes arising with National Grid's employees or breaches of laws
or regulations by its employees; the failure to respond to market
developments, including competition for onshore transmission; the
threats and opportunities presented by emerging technology; the
failure by the Company to respond to, or meet its own commitments
as a leader in relation to, climate change development activities
relating to energy transition, including the integration of
distributed energy resources; and the need to grow the Company's
business to deliver its strategy, as well as incorrect or
unforeseen assumptions or conclusions (including unanticipated
costs and liabilities) relating to business development activity,
including the announced sale of certain of its businesses, its
strategic infrastructure projects and joint ventures and the
separation and transfer of the ESO to the public sector. For
further details regarding these and other assumptions, risks and
uncertainties that may impact National Grid, please read the
Strategic Report section and the 'Risk factors' on pages 226 to 231
of National Grid's most recent Annual Report and Accounts. In
addition, new factors emerge from time to time and National Grid
cannot assess the potential impact of any such factor on its
activities or the extent to which any factor, or combination of
factors, may cause actual future results to differ materially from
those contained in any forward-looking statement. Except as may be
required by law or regulation, the Company undertakes no obligation
to update any of its forward-looking statements, which speak only
as of the date of this announcement. This announcement is for
informational purposes only and does not constitute an offer to
sell or the solicitation of an offer to buy any
securities.