UK National Grid Profits Rise in 2017-18

Britain’s and northeast US energy transmission system operator National Grid said its underlying profits increased in the year to March.

It announced May 17 that net profit, after tax, for the 12 months ending March 2018 reached £3.592bn ($4.85bn), up 98% year on year. Its headline net profit -- based on continuing business (so netting out the effect of its sale of 61% stake in UK distributor Cadent) –was down 4% at £2.061bn. Most of the multi-billion Cadent divestment proceeds were returned to NGrid shareholders.

Underlying operating results, however, grew by 4% to £3.495bn  in 2017/18 (year before: £3.375bn), based on an NGrid holding of 39% in UK distributor Cadent for both years; the company has indicated the likely sale of its remaining 39% Cadent stake in two phases by October 2019. 

Of that £3.495bn, its UK gas transmission business achieved earnings of £505mn, up 12%, whereas its UK power transmission saw earnings decline by 15% to £1.055bn. Other segmental earnings increased: US regulated business by 20% to £1.704bn ($2.3bn), and ventures by 28% to £231mn.

Among the latter, NGrid said its UK LNG import terminal on the Isle of Grain (banner photo courtesy of NGrid) continued to deliver consistent operating profits - £76mn in the year to March 2018, versus year-ago £74mn - backed by long-term 'take or pay' capacity contracts with suppliers. Also among ventures, NGrid said new 1GW subsea power connectors being laid to Belgium (Nemo Link, 140km) and France (IFA2, 240km) would be operational by March 2019 and March 2021 respectively, whilst a 1.4GW, 720km one to Norway (North Sea Link) would be operational by March 2022.