National Grid PLC National Grid Update to 2017/18 Technical Guidance (6477K)
April 12 2018 - 2:00AM
UK Regulatory
TIDMNG.
RNS Number : 6477K
National Grid PLC
12 April 2018
12 April 2018
National Grid Pre-Close Update to 2017/18 Technical Guidance
National Grid updates its 2017/18 technical guidance ahead of
entering close period on 17 April 2018.
Underlying Group EBIT is expected to be in line with original
guidance. Headline Group EBIT is expected to be lower due to the
impact of major storms in on our US businesses. This is largely
offset at the earnings level by benefits to finance costs and a
lower effective tax rate.
US Storms
Our US businesses incurred major storm remediation costs of
approximately GBP140 million, approximately 3p on Earnings Per
Share (EPS). These costs are expected to be recovered in future
periods and will be reported as timing in our full-year results in
May.
Financing and tax
Finance costs are expected to benefit from gains of
approximately GBP60m or 1.5p at the EPS level relating to the
realisation of gains on investments in our insurance captive. The
Group's tax charge is now expected to be approximately 24% (down
from the previous expectation of around 27%), in part due to
changes in profit mix and the lower US corporate tax rate following
changes to US tax law.
Other timing impacts
Headline full-year results are expected to include US in-year
timing over recoveries (before major storm costs) of approximately
GBP135 million. This is expected to be partially offset by a UK
in-year under recovery of approximately GBP30m. The net benefit to
headline Group EPS attributable to timing is estimated to be
2p.
National Grid will publish its preliminary results for 2017/18
on Thursday 17 May 2018.
Notes:
For 2017/18 the weighted average number of shares was
approximately 3,460m and the average exchange rate was
approximately 1.36 Dollars to the Pound.
Underlying EBIT is adjusted earnings before interest and tax
excluding the in-year impact of timing and major storms costs.
Headline EBIT is adjusted earnings before interest and tax
including the in-year impact of timing and major storms.
CONTACTS
Investors:
+44 (0)20
Aarti Singhal 7004 3170
+44 (0)20
Tom Edwards 7004 3460
Media
+44 (0)20
Sean Kemp 7004 3149
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
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. 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. Many of these assumptions, risks and
uncertainties relate to factors that are beyond National Grid's
ability to control or estimate precisely, such as changes in laws
or regulations, including any arising as a result of the United
Kingdom's exit from the European Union, announcements from and
decisions by governmental bodies or regulators including those
relating to the role of the UK electricity system operator; 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, or due to the failure of or
unauthorised access to or deliberate breaches of National Grid's IT
systems and supporting technology; performance against regulatory
targets and standards and against National Grid's peers with the
aim of delivering stakeholder expectations regarding costs and
efficiency savings, including those related to investment
programmes and internal transformation and remediation plans; 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; inflation or deflation; 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, train or retain employees with the
necessary competencies, including leadership skills, and any
significant disputes arising with the National Grid's employees or
the breach of laws or regulations by its employees; and the failure
to respond to market developments, including competition for
onshore transmission, the threats and opportunities presented by
emerging technology, development activities relating to changes in
the energy mix and 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 assumptions in
connection with National Grid's sale of a majority stake in its gas
distribution business and with joint ventures. 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 180 to 183 of National Grid's most
recent Annual Report and Accounts, as updated by National Grid's
unaudited half-year financial information for the six months ended
30 September 2017 published on 9 November 2017. 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 information is provided by RNS
The company news service from the London Stock Exchange
END
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