National Grid, the U.K. electricity-transmission network operator, has announced a decrease in pretax profit for the first half of the fiscal year. The company cites lower-than-expected adjusted operating profit and the anticipated impact of new U.K. legislation on underlying earnings per share.
According to National Grid, pretax profit for the six months ending in September amounted to £1.25 billion, down from £1.67 billion from the previous year. The company’s underlying operating profit, which excludes exceptional items, remeasurements, and timing effects, experienced a 15% decline to £1.8 billion. This figure fell short of the consensus estimate of £4.48 billion compiled by the company. The decrease is attributed to non-recurring items reported in fiscal 2023.
Revenue also witnessed a decline from £9.44 billion to £8.49 billion during the same period.
Despite these challenges, National Grid declared an interim dividend of 19.40 pence per share, marking an increase from the previous year’s 17.84 pence.
National Grid acknowledges that the new capital allowances legislation will impact adjusted earnings per share by 6 pence to 7 pence. However, the company remains confident that there will be no long-term economic implications.
Looking ahead, National Grid has adjusted its financial outlook for the five-year period leading up to 2026. The company now plans to increase its total cumulative capital investment to up to £42 billion, up from the previous guidance of £40 billion.
