National Grid powers on despite profits dip
Profits at Warwickshire-based National Grid have decreased by 3%, according to its annual results published today (18 June).
Operating profits dropped by 3% to £2.8bn, with the power giant predicting that the Covid-19 pandemic will wipe a further £400m off its profits next year.
Despite this, the board has recommended a final dividend of 48.57p a share – a rise of 2.6%.
John Pettigrew, chief executive, said: “We have successfully implemented our business continuity plans in response to the Covid-19 pandemic, ensuring the well-being of our staff and customers, whilst maintaining continuity of service. I am proud of our response and contribution to help our customers and communities through these challenging times.
“National Grid made good progress in 2019/20. We maintained high levels of reliability across our networks and delivered good financial performance. Asset growth of 9% was underpinned by record investment of £5.4 billion. We achieved continued regulatory progress in the UK, responded proactively to the challenges in downstate New York, whilst further developing our interconnector and renewable portfolios.
“Looking ahead, whilst COVID-19 will impact our financial performance in FY21, we expect this to be largely recoverable over future years and therefore anticipate no material economic impact on the Group in the long-term. We continue to target asset growth of 5-7% in the near term and with an efficient balance sheet that underpins asset and dividend growth, the Group is well positioned to create value for shareholders.”
