National Grid’s half-year revenue fell by 6% to £8.0bn, with the biggest fall being seen at the UK Electricity System Operator, which has since been disposed of to the UK Government for around £0.6bn.
Underlying operating profit increased by 15% to £2.0bn, ignoring currency impacts. National Grid Ventures was the only division where profit fell. This was offset by gains elsewhere with increased rates in New York and higher revenues in UK Electricity Transmission being amongst the largest drivers.
Free cash outflows increased from £0.3bn to £1.4bn reflecting a deterioration in cash generated from operations and increased capital investment.
Net debt fell by £5.1bn over the first six months to £38.5bn, benefitting from a £6.8bn equity fundraise.
National Grid expects operating profit growth of around 10% for the full year. In terms of earnings per share (EPS) growth, the additional share count from the Rights Issue is now anticipated to largely offset this improvement. Over the following four years, EPS is expected to grow at an average annual rate of 6-8%.
The interim dividend has been reduced from 19.40p to 15.84p.
The shares were broadly flat in early trading.
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National Grid key facts
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