Nov 8, 2018
National Grid profit hit by US tax reform, storms and shelved project
Profits National Grid edged down in the first half of the year, hit by storms in the US and the country's recent tax reforms as well as the return of funds it had been allowed to collect for a project that did not go ahead. The network operator said on Thursday underlying pre-tax profit for the period slipped 4 per cent to £816m compared to last year. It said the reduction in the federal tax rate in the US, from 35 per cent to 21 per cent, would be economically neutral for utilities but would reduce cash flows in the near term. The group reported underlying earnings per share rose 1.2p to 19.7p, which it said reflected a lower tax rate and reduced share count. He added that National Grid was "Well positioned for the ongoing energy transition" and said the company was "On track to achieve asset growth at the top end of our 5-7 per cent range in the medium term." The company said it would exercise options for the sale of its remaining 39 per cent share in Cadent, its former gas distribution business.
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