National Grid 1st Half 2021 Profit Boosted by One-Offs; Adjusted EBIT Fell

By Jaime Llinares Taboada

National Grid PLC on Thursday posted significantly higher profit for the first half of its fiscal 2021, but underlying earnings declined amid Covid-19 related costs.

The energy networks company made a pretax profit of 720 million pounds ($952.3 million) in the six months to Sept. 30, up from GBP404 million a year earlier. The increase was driven by exceptional income such as mark-to-market remeasurements gains.

Underlying operating profit--one of the company's preferred metrics--which strips out exceptional items and remeasurements--fell to GBP1.15 billion from GBP1.30 billion. It missed the market consensus of GBP1.19 billion, taken from the company's website and based on 12 analysts' forecasts.

National Grid estimates that the coronavirus pandemic reduced its underlying operating profit by GBP117 million in the first half of the year, mainly as a result of higher bad debt and a shortfall of revenue under existing regulatory agreements. The group continues to expect a full-year impact of GBP400 million.

The company declared an interim dividend of 17.0 pence a share, up from 16.57 pence a year earlier. The proposed payment is slightly below market expectations of 17.05 pence, taken from the company's website and based on 10 forecasts.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

November 12, 2020 02:40 ET (07:40 GMT)

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