REG - National Grid PLC - Half Year Results 2017/18 <Origin Href="QuoteRef">NG.L</Origin> - Part 2
09/11/2017 07:08
- Part 2: For the preceding part double click ID:nRSI9912Va
targeting 90% of the allowed Return on Equity, with the increase driven by updated
rate plans and a continued focus on operating efficiently.
US JURISDICTION UPDATE
New York
KEDNY and KEDLI are currently operating under the first year of three-year rate plans that came into effect on 1 January
2017. Under the plans, bill increases are phased over the three years to help mitigate customer bill impacts. IFRS revenues
are more closely aligned with this phased profile. KEDNY bill increases were $174m in calendar year 2017 and will increase
a further $135m in 2018. KEDLI bill increases were $84m in calendar year 2017 and will increase a further $49m in 2018. The
allowed Return on Equity is 9.0% and the plan includes opportunities to earn performance incentives.
Importantly, the KEDNY/KEDLI rate plan allows for significant capital investment of $3bn over the three year period,
enabling the Company to make critical investments in infrastructure on behalf of its customers.
Niagara Mohawk is currently operating under a rate plan that began in April 2013 and provided revenue increases through
March 2016. A subsequent extension of the capital investment plan was made to fund $1.3bn of capital investment over
2016/17 and 2017/18.
On 28 April 2017, National Grid filed a full rate case for Niagara Mohawk Electric and Gas to modernise the electricity and
gas networks to enhance reliability and resilience, to continue to provide a high level of customer service and assist the
most vulnerable customers and to develop the energy infrastructure and technologies that support the State of New York's
energy vision. The filing was a one-year plan; however, National Grid filed two additional years of data to provide the
opportunity for a multi-year plan that could phase in customer bill increases to mitigate the impact.
The rate case process is on track and progressing as expected. Settlement discussions are underway and the Company remains
confident that a multi-year settlement can be reached. New rates are expected to become effective 1 April 2018.
For the first half of 2017/18, investment in the New York companies increased compared to the first half of 2016/17
reflecting increased allowances. In downstate New York, KEDNY has begun the five-year Metropolitan Reliability
Infrastructure project to meet the growing long-term system demands in Brooklyn and KEDLI has begun the six-year Northwest
Nassau Gas Transmission Reliability project to increase operational reliability on Long Island. Together, these projects
are expected to account for over $500m of new investment over six years.
In upstate New York, construction is underway on the Gardenville project, which is expected to be an investment of over
$100m to rebuild certain substation and transmission line assets. In addition to improving asset conditions, the project
enables capacity to accommodate load growth and enhance reliability.
In line with the rate allowances, the New York Jurisdiction is on track to exceed 2016/17 investment levels this year.
National Grid continues to develop and implement projects to progress New York State's Reforming the Energy Vision (REV)
programme and currently has eight projects underway. These projects are designed to test the feasibility of the programmes
with potential larger scale investments in the future. Further funding for the downstate projects was received through the
KEDNY/KEDLI rate plan and additional funding for upstate projects has been requested in the recent Niagara Mohawk rate
filing.
Massachusetts
Massachusetts Electric is operating under new rates that became effective from 1 October 2016, increasing allowed revenues
for the 12 months from 1 October 2016 by $101m, as well as providing an allowed Return on Equity of 9.9%. As Massachusetts
uses historical test years the rate plan is not for a fixed term but resets rates moving forward. The current fiscal year
is the first full year under these refreshed rates.
Importantly, the approved plan also included a $79m increase in funded annual capital investment of up to $249m.
Massachusetts Gas is currently operating under rates that became effective November 2010. For 2017, National Grid agreed an
investment plan of up to $241m with the regulator, allowing the business to earn a return on the increased level of
investment needed for leak prone pipe replacement work. The company expects to file a new rate plan in November 2017.
Investment in the Massachusetts companies increased compared to the first half of 2016/17. The majority of the capital
investment being made in Massachusetts is within the gas businesses, primarily driven by the Gas System Enhancement
programme which allows for the replacement of ageing infrastructure on a 20-year cycle. The Company is also making good
progress with its major projects including the $120m modernisation of the Commercial Point LNG site. This project will
ensure compliance with modern industry codes and standards while improving safety, reliability, and operability.
National Grid's Massachusetts business has a number of initiatives underway to help the state meet its low carbon
objectives. This year, the Company has commenced Phase 3 of its utility-scale solar programme, which will provide a further
14 MW of capacity alongside a 7 MW battery storage solution.
Last year, National Grid filed a proposal with Massachusetts to develop 1,200 electric vehicle charging stations, including
80 fast charging stations, across the state. Massachusetts DPU does not have a timeframe for responding to this proposal.
National Grid awaits a decision on its grid modernisation filing made in 2015. The filing included four proposals to
modernise the electric network ranging from approximately $200m to approximately $900m over a five-year period.
Rhode Island
Both the Rhode Island gas and electric businesses are recovering base operating costs under one-year rate plans that became
effective in February 2013. Other costs, including capital, pension and property taxes, are recovered through annual
trackers. These include gas and electric Infrastructure Safety and Reliability (ISR) capital trackers that allow National
Grid to agree to a level of investment for each coming year and concurrently recover the full costs associated with
investment in year.
National Grid expects to file a new rate plan for its Rhode Island Electric and Gas utilities in November 2017.
Investment in the Rhode Island companies is at a similar level to the first half of 2016/17. The investment programme to
replace ageing gas pipe and maintain safe and reliable electric service is on track. This year, the Company is making
significant progress on the South Street substation re-build project which is critical in serving Providence and a
cornerstone for the redevelopment that is underway in this area of the city.
In response to the Governor's Power Sector Transformation initiative launched in April 2017, the three Rhode Island Utility
State Agencies have published a series of proposals that reflect six months of public consultation and significant
collaboration with the Company. The proposals refine the existing regulatory framework, seeking to promote a flexible grid
and enable Rhode Islanders to take full advantage of new, clean energy technologies. The Company will include a number of
the proposals in its upcoming rate case, including foundational investment in advanced meter functionality and grid
modernisation, a series of distributed energy resource (DER) programmes, and new upside only performance incentives.
FERC
Investment in the FERC companies for the first six months of the year is down from the first half of the prior year.
Investment has been focused on improving the reliability of the transmission network and the generation assets, as well as
upgrades for compliance with North American Electric Reliability Corporation Critical Infrastructure Protection to advance
the physical security and cybersecurity of the Company's assets.
In April, the U.S. Court of Appeals for the District of Columbia Circuit found that FERC failed to articulate a
satisfactory explanation for its actions in lowering the base return on equity for the New England transmission owners from
11.14% to 10.57%. In October 2017, FERC issued an order on remand rejecting the New England transmission owners filing to
return to the original level of return on equity of 11.14%. The Commission will review the issue and make an eventual just
and reasonable Return on Equity effective for the refund period. There are three further FERC RoE complaints and there is
no timeframe for resolutions.
The FERC Jurisdiction continues to identify and develop innovative clean energy solutions for our customers. The island of
Nantucket, Massachusetts is currently served by two submarine cables. Due to growing electricity demand, National Grid is
developing its first large scale battery storage system which will maintain reliability, reduce emissions and provide an
alternate supply in the event of a cable failure. The 48 megawatt hour battery energy storage system will work in tandem
with a higher-capacity new diesel generator to replace the ageing system. National Grid's costs will be recovered through
FERC transmission rates.
Additionally, the FERC Jurisdiction is undertaking a programme to deploy new technology to improve digital communication
within its transmission substations. This will standardise communications within substations which is expected to improve
safety, increase system availability and reduce operating costs.
NATIONAL GRID VENTURES AND OTHER ACTIVITIES
Six months ended 30 September Adjustedoperating profit Capital investment
(£m) 2017 2016 2017 2016
Metering 83 86 24 16
Grain LNG 37 35 3 2
French Interconnector 34 35 11 5
North Sea Link - - 15 21
Other (22) (17) 19 -
Total National Grid Ventures 132 139 72 44
Property 53 44 5 5
Corporate and other activities (27) (31) 48 35
Total Other 26 13 53 40
Total National Grid Ventures and other 158 152 125 84
'Adjusted results' and a number of other terms and performance measures are not defined within accounting standards and may
be applied differently by other organisations. For clarity, we have provided definitions of these terms and, where
relevant, reconciliations on pages 43 - 46.
Joint ventures and associates Share of post-tax results Capital investment*
(£m) 2017 2016 2017 2016
BritNed 18 28 - -
Nemo Link (1) - 64 10
Millennium 6 6 3 2
Other 1 - 41 29
Total National Grid Ventures 24 34 108 41
St. William (4) (3)
Cadent 55 -
Total Other 51 (3)
Total Joint Ventures and Associates 75 31
* excludes £8m and £5m equity contribution to St William property joint venture for 2017 and 2016, respectively.
'Adjusted results' and a number of other terms and performance measures are not defined within accounting standards and may
be applied differently by other organisations. For clarity, we have provided definitions of these terms and, where
relevant, reconciliations on pages 43 - 46.
National Grid Ventures
National Grid Ventures was created to explore growth opportunities, reinforce our technological expertise and strengthen
our commercial capabilities as we continue to evolve for the future. National Grid Ventures includes the metering business,
the Grain LNG facility and the French Interconnector. It also includes our new interconnector projects, North Sea Link and
IFA2, as well as National Grid's share in joint ventures and associates including the BritNed and Nemo Link
interconnectors, our investment in Sunrun and a 26% interest in the Millennium natural gas pipeline in New York State.
Adjusted operating profit for the first six months was £132m, down £7m compared to last year. Capital investment was £72m
for the period to 30 September 2017, up £28m versus the prior period, mainly due to seabed survey and development costs for
North Sea Link and IFA2.
In June, National Grid Ventures was awarded preferred bid status for the Shetland new energy solution. This joint project
with Aggreko will be a 260 kilometer, 60MW HVDC interconnector connecting the Shetland Islands to the Scottish mainland,
with back-up on-island generators. Contracts for the project are expected to be signed in December with operations
beginning in 2021.
National Grid Ventures' partnership with Sunrun, which was announced earlier this year, is progressing well. The Company is
gaining valuable first-hand experience about the residential solar market, and in particular, co-marketing and grid
services pilots. The partnership is currently exploring the potential for customer-sited storage.
In June NG Ventures signed power purchase agreements with the Long Island Power Authority to build and operate battery
storage energy systems. This project includes two 5 MW, 8 hour lithium-ion battery systems located on Long Island's South
Fork and will help customers avoid the cost of new transmission or traditional generation. The business also won a
competitive 20MW solar project in Suffolk County Long Island.
The post-tax share of joint ventures and associates that are included in National Grid Ventures for the first six months
was £24m, down £10m compared to last year at constant currency. This was driven by lower auction revenue in BritNed in the
current period due to lower arbitrage between the UK and Netherlands. Capital investment for the six months to 30 September
2017 increased significantly compared with the prior period, due to the ongoing construction of Nemo Link and our
investment in Sunrun.
Other activities
Other activities consist of the Property business, US and UK corporate costs and other items. Other joint ventures and
associates include the St. William and Cadent investments.
Adjusted operating profit for the six months ended 30 September 2017 was £26m, up £13m compared to last year, due to
additional property site sales in the period versus the prior year.
The post-tax share of the joint ventures and associates for the first six months was £51m, up £54m compared to last year.
This was due to the inclusion of National Grid's 39% share of Cadent in the current period.
The St. William partnership is progressing well, with National Grid entering into contracts for the sale of an additional
site in the period. Construction is progressing on track at Battersea and Rickmansworth and is also planned to start at
Borehamwood and Highbury in the second half of this year.
Following the sale of the majority stake in Cadent, the business performed in line with expectations for the first half of
the year. Timing was adverse to expectations due to lower commodity and capacity income, along with RPI true ups, resulting
in an under-recovery versus the comparative period for the 39% stake in Gas Distribution.
Capital investment in the first six months of the year was £53m, an increase of £11m compared with the prior period on a
constant currency basis, driven primarily by increased IT system spend in the US.
APPENDIX: BASIS OF PRESENTATION, DEFINITIONS AND METRIC CALCULATIONS
BASIS OF PRESENTATION
Adjusted and Statutory Results
Unless otherwise stated, all financial commentaries in this release are given on an adjusted basis at actual exchange
rates.
In considering the financial performance of our businesses and segments, we analyse each of our primary financial measures
of adjusted operating profit, profit before tax, profit for the year attributable to equity shareholders and EPS into two
components. The first of these components is referred to as an adjusted profit measure, also known as a business
performance measure. This is the principal measure used by management to assess the performance of the underlying business.
Adjusted results exclude exceptional items and remeasurements. These items are reported collectively as the second
component of the financial measures. Note 3 on page 34 explains in detail the items which are excluded from our adjusted
profit measures.As a matter of course, management also considers earnings performance by segment, excluding the effect of
timing (see page 44).
Adjusted profit measures have limitations in their usefulness compared with the comparable total profit measures as they
exclude important elements of our financial performance. However, we believe that by presenting our financial performance
in two components it is easier to read and interpret financial performance between periods, as adjusted profit measures are
more comparable having removed the distorting effect of the excluded items. Those items are more clearly understood if
separately identified and analysed.
DEFINITIONS
Annual asset growth
'Annual asset growth' measures the increase in 'total regulatory value and other investments', defined below.
Capital investment
'Capital investment' or 'investment' refer to additions to property, plant and equipment and intangible assets (capital
expenditure), and equity contributions and financing to joint ventures and associates, other than the St. William joint
venture during the period. St. William is excluded based on the nature of this joint venture arrangement.
Constant currency
'Constant currency basis' refers to the reporting of the actual results against the results for the same period last year
which, in respect of any US$ currency denominated activity, have been translated using the average US$ exchange rate for
the six months ended 30 September 2017, which was $1.31 to £1.00. The average rate for the six months ended 30 September
2016, was $1.39 to £1.00. Assets and liabilities as at 30 September 2016 have been retranslated at the closing rate at 30
September 2017 of $1.34 to £1.00. The closing rate for the balance sheet date 30 September 2016 was $1.30 to £1.00.
Load related spend
'Load related spend' is capital expenditure that relates to the installation of new assets to accommodate changes in the
level or pattern of energy supply and demand.
Net revenue
'Net revenue' is revenue less pass-through costs, such as payments to other UK network owners, system balancing costs, and
gas and electricity commodity costs in the US. Pass-through costs are fully recoverable from our customers and are
recovered through separate charges that are designed to recover those costs with no profit. Any over- or under-recovery of
these costs is returned to, or recovered from, our customers.
Non-load related spend
'Non-load related spend' is capital expenditure that relates to the replacement or refurbishment of assets which are either
at the end of their useful life due to their age or condition, or need to be replaced on safety or environmental grounds.
Return on equity
'Return on equity' 'RoE' or 'returns' is a performance metric measuring returns from the investment of shareholders' funds.
It is a financial ratio of a measure of earnings divided by an equity base.
Timing
Under the Group's regulatory frameworks, the majority of the revenues that National Grid is allowed to collect each year
are governed by a regulatory price control or rate plan. If a company collects more than this allowed level of revenue, the
balance must be returned to customers in subsequent years, and if it collects less than this level of revenue it may
recover the balance from customers in subsequent years. These variances between allowed and collected revenues give rise to
"over and under recoveries". In addition, a number of costs in both the UK and the US are pass-through costs (including
substantial commodity and energy efficiency costs in the US), and are fully recoverable from customers. Any timing
differences between costs of this type being incurred and their recovery through revenues are also included in over and
under-recoveries. In the UK, timing differences also include an estimation of the difference between revenues earned under
revenue incentive mechanisms and any associated revenues collected. UK timing balances and movements exclude any
adjustments associated with changes to controllable cost (totex) allowances or adjustments under the totex incentive
mechanism.
Identification of these timing differences enables a better comparison of performance from one period to another. Opening
balances of under and over-recoveries have been restated where appropriate to correspond with regulatory filings and
calculations.
Total regulatory value and other investments
The sum of: the regulatory asset value of the UK regulated businesses determined under the methodology set out in Ofgem's
Price Control Financial Model; the rate bases applicable to each US regulated entity calculated according to the
methodology used by each respective utility regulator; the value of assets held by the Group's other activities; together
with investments in joint ventures and associates. National Grid Ventures and other activities primarily relate to
non-network businesses and other commercial operations including: UK gas metering activities; the Great Britain-France
Interconnector; UK commercial property; and a UK LNG import terminal.
Totex
Under the UK RIIO regulatory arrangements the Company is incentivised to deliver efficiencies against cost targets set by
the regulator. In total, these targets are set in terms of a regulatory definition of combined total operating and capital
expenditure, also termed "totex". The definition of totex differs from the total combined regulated controllable operating
costs and regulated capital expenditure as reported in this statement according to IFRS accounting principles. Key
differences are capitalised interest, capital contributions, exceptional costs, costs covered by other regulatory
arrangements and unregulated costs.
PROVISIONAL FINANCIAL TIMETABLE
22 November 2017 ADRs go ex-dividend
23 November 2017 Ordinary shares go ex-dividend
24 November 2017 Record date for 2017/18 interim dividend
30 November 2017 Scrip reference price announced
8 December 2017 Scrip election date for 2017/18 interim dividend (5pm)
10 January 2018 2017/18 interim dividend paid to qualifying shareholders
17 May 2018 2017/18 preliminary results
31 May 2018 Ordinary shares and ADRs go ex-dividend
1 June 2018 Record date for 2017/18 final dividend
7 June 2018 Scrip reference price announced
28 June 2018 Scrip election date for 2017/18 final dividend (5pm)
30 July 2018 Annual General Meeting, ICC, Birmingham
15 August 2018 2017/18 final dividend paid to qualifying shareholders
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 (the Company) 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, predict 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; 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 the Company'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 plc's most
recent Annual Report and Accounts. 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.
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Consolidated income statement
for the six months ended 30 September
2017 Notes Before exceptional items and remeasurements Exceptional items and remeasurements Total
£m
Continuing operationsRevenue 2(a) 6,684 - 6,684
Operating costs (5,425) 15 (5,410)
Operating profit 2(b)/3 1,259 15 1,274
Finance income 4 39 - 39
Finance costs 4/3 (566) 28 (538)
Share of post-tax results of joint ventures and associates 2(b) 75 (3) 72
Profit before tax 2(b)/3 807 40 847
Tax 6/3 (152) (4) (156)
Profit after tax from continuing operations 3 655 36 691
Loss after tax from discontinued operations 5 - (14) (14)
Total profit for the period (continuing and discontinued) 655 22 677
Attributable to:
Equity shareholders of the parent 654 22 676
Non-controlling interests1 1 - 1
Earnings per share (pence)
Basic earnings per share (continuing) 7 19.5
Diluted earnings per share (continuing) 7 19.4
Basic earnings per share (continuing and discontinued) 7 19.1
Diluted earnings per share (continuing and discontinued) 7 19.0
2016 re-presented3 Notes Before exceptional items and remeasurements Exceptional items and remeasurements Total
£m
Continuing operationsRevenue 2(a) 6,280 - 6,280
Operating costs (4,837) 29 (4,808)
Operating profit 2(b)/3 1,443 29 1,472
Finance income 4 39 - 39
Finance costs 4/3 (483) (94) (577)
Share of post-tax results of joint ventures and associates 2(b) 31 - 31
Profit before tax 2(b)/3 1,030 (65) 965
Tax 6/3 (228) 96 (132)
Profit after tax from continuing operations 3 802 31 833
Profit/(loss) after tax from discontinued operations 5 262 (589) (327)
Total profit/(loss) for the period (continuing and discontinued) 1,064 (558) 506
Attributable to:
Equity shareholders of the parent 1,062 (558) 504
Non-controlling interests2 2 - 2
Earnings per share (pence)
Basic earnings per share (continuing) 7 22.1
Diluted earnings per share (continuing) 7 22.0
Basic earnings per share (continuing and discontinued) 7 13.4
Diluted earnings per share (continuing and discontinued) 7 13.3
1. The non-controlling interests for the six month period ended 30 September 2017 relate to continuing operations.
2. The non-controlling interests for the six month period ended 30 September 2016 relate to discontinued operations.
3. Comparatives have been re-presented to reflect the classification of the UK Gas Distribution business as a
discontinued operation (see note 5) and for the change to a columnar format (see note 1).
Consolidated statement of comprehensive incomefor the six months ended 30 September
2017 2016Re-presented1
£m £m
Profit after tax from continuing operations 691 833
Other comprehensive income/(loss) from continuing operations
Items from continuing operations that will never be reclassified to profit or loss:
Remeasurement gains/(losses) on pension assets and post-retirement benefit obligations 594 (813)
Tax on items that will never be reclassified to profit or loss (106) 167
Share of other comprehensive income of associates, net of tax2 60 -
Total items from continuing operations that will never be reclassified to profit or loss 548 (646)
Items from continuing operations that may be reclassified subsequently to profit or loss:
Exchange adjustments (262) 243
Net gains in respect of cash flow hedges 16 74
Transferred to profit or loss in respect of cash flow hedges 6 2
Net gains on available-for-sale investments 10 9
Tax on items that may be reclassified subsequently to profit or loss (3) (14)
Share of other comprehensive income of associates, net of tax2 4 -
Total items from continuing operations that may be reclassified subsequently to profit or loss (229) 314
Other comprehensive income/(loss) for the period, net of tax, from continuing operations 319 (332)
Other comprehensive loss for the period, net of tax, from discontinued operations - (258)
Other comprehensive income/(loss) for the period, net of tax 319 (590)
Total comprehensive income for the period from continuing operations 1,010 501
Total comprehensive loss for the period from discontinued operations (14) (585)
Total comprehensive income/(loss) for the period 996 (84)
Attributable to:
Equity shareholders of the parent 996 (87)
Non-controlling interests3 - 3
1. Comparatives have been re-presented to reflect the classification of the UK Gas Distribution business as a
discontinued operation (see note 5).
2. The share of other comprehensive income of associates relates to items of other comprehensive income of Cadent
(investment held through Quadgas Holdco Limited), comprising £60m remeasurement gains on pension assets and post-retirement
benefit obligations, and a £4m net gain in respect of cash flow hedges. Both items are shown net of tax.
3. The non-controlling interests for the six month period ended 30 September 2016 relate to both continuing and
discontinued operations.
Consolidated statement of changes in equityfor the six
months ended 30 September Share capital Share premium
account Retained earnings Other equity reserves Total
share-holders' equity Non-controlling interests Total
equity Notes £m £m £m £m £m £m £m At 1 April 2017 449
1,324 22,582 (3,987) 20,368 16 20,384 Profit for the
period - - 676 - 676 1 677 Other comprehensive
income/(loss) for the period - - 548 (228) 320 (1) 319
Total comprehensive income/(loss) for the period - -
1,224 (228) 996 - 996 Equity dividends 8 - - (4,141) -
(4,141) - (4,141) Scrip dividend related share issue 1
(1) - - - - - Issue of treasury shares - - 28 - 28 28
Purchase of treasury shares - - (413) - (413) - (413)
Purchase of own shares - - (5) - (5) - (5) Share-based
payment - - 23 - 23 - 23 At 30 September 20171 450 1,323
19,298 (4,215) 16,856 16 16,872 1. Refer to note 7
for the effect of the share consolidation and the
special dividend.
Share capital Share premium account Retained earnings Other equity reserves Total share-holders' equity Non-controlling interests Total equity
Notes £m £m £m £m £m £m £m
At 1 April 2016 447 1,326 16,305 (4,523) 13,555 10 13,565
Profit for the period - - 504 - 504 2 506
Other comprehensive (loss)/income for the period - - (843) 252 (591) 1 (590)
Total comprehensive (loss)/income for the period - - (339) 252 (87) 3 (84)
Equity dividends 8 - - (923) - (923) - (923)
Scrip dividend related share issue 2 (2) - - - - -
Issue of treasury shares - - 17 - 17 - 17
Purchase of treasury shares - - (12) - (12) - (12)
Purchase of own shares - - (6) - (6) - (6)
Share-based payment - - 13 - 13 - 13
At 30 September 2016 449 1,324 15,055 (4,271) 12,557 13 12,570
Other equity reserves
Total share-holders' equity
Non-controlling interests
Total equity
Notes
£m
£m
£m
£m
£m
£m
£m
At 1 April 2016
447
1,326
16,305
(4,523)
13,555
10
13,565
Profit for the period
-
-
504
-
504
2
506
Other comprehensive (loss)/income for the period
-
-
(843)
252
(591)
1
(590)
Total comprehensive (loss)/income for the period
-
-
(339)
252
(87)
3
(84)
Equity dividends
8
-
-
(923)
-
(923)
-
(923)
Scrip dividend related share issue
2
(2)
-
-
-
-
-
Issue of treasury shares
-
-
17
-
17
-
17
Purchase of treasury shares
-
-
(12)
-
(12)
-
(12)
Purchase of own shares
-
-
(6)
-
(6)
-
(6)
Share-based payment
-
-
13
-
13
-
13
At 30 September 2016
449
1,324
15,055
(4,271)
12,557
13
12,570
Consolidated statement of financial position 30 September 2017 31 March 2017
Notes £m £m
Non-current assets
Goodwill 5,699 6,096
Other intangible assets 2(c) 893 923
Property, plant and equipment 2(c) 39,485 39,825
Other non-current assets 119 121
Pension assets 12 903 603
Financial and other investments 1,119 1,100
Investments in joint ventures and associates 2,268 2,083
Derivative financial assets 9 1,251 1,515
Total non-current assets 51,737 52,266
Current assets
Inventories and current intangible assets 469 403
Trade and other receivables 2,025 2,782
Current tax assets 162 317
Financial and other investments 11 2,573 8,741
Derivative financial assets 9 600 192
Cash and cash equivalents 11 39 1,139
Total current assets 5,868 13,574
Total assets 57,605 65,840
Current liabilities
Borrowings 11 (3,864) (5,496)
Derivative financial liabilities 9 (516) (1,054)
Trade and other payables (2,882) (3,438)
Current tax liabilities (83) (107)
Provisions (289) (416)
Total current liabilities (7,634) (10,511)
Non-current liabilities
Borrowings 11 (22,245) (23,142)
Derivative financial liabilities 9 (913) (1,169)
Other non-current liabilities (1,441) (1,447)
Deferred tax liabilities (4,464) (4,479)
Pensions and other post-retirement benefit obligations 12 (2,035) (2,536)
Provisions (2,001) (2,172)
Total non-current liabilities (33,099) (34,945)
Total liabilities (40,733) (45,456)
Net assets 16,872 20,384
Equity
Share capital 450 449
Share premium account 1,323 1,324
Retained earnings 19,298 22,582
Other equity reserves (4,215) (3,987)
Total shareholders' equity 16,856 20,368
Non-controlling interests 16 16
Total equity 16,872 20,384
Consolidated cash flow statementfor the six months ended 30 September
2017 2016
Re-presented1
Notes £m £m
Cash flows from operating activities
Total operating profit from continuing operations 2(b) 1,274 1,472
Adjustments for:
Exceptional items and remeasurements 3 (15) (29)
Depreciation and amortisation 2(c) 762 707
Share-based payment charge 23 11
Changes in working capital 153 94
Changes in provisions (51) (64)
Changes in pensions and other post-retirement benefit obligations (124) (357)
Cash flows relating to exceptional items - (10)
Cash generated from continuing operations 2,022 1,824
Tax received/(paid) 46 (86)
Net cash flow from operating activities - continuing operations 2,068 1,738
Net cash flow (used in)/from operating activities - discontinued operations2 (126) 350
Cash flows from investing activities
Acquisition of investments (1) (4)
Investments in joint ventures and associates (77) (39)
Loans to joint ventures and associates (38) (6)
Purchases of intangible assets (73) (82)
Purchases of property, plant and equipment (1,768) (1,547)
Disposals of property, plant and equipment 2 1
Dividends received from joint ventures and associates 29 49
Interest received 35 12
Net movements in short-term financial investments 6,130 (137)
- More to follow, for following part double click ID:nRSI9912VcRecent news on National Grid
See all newsREG - National Grid PLC - Director/PDMR Shareholding
AnnouncementREG - National Grid PLC - Director/PDMR Shareholding
AnnouncementREG - Societe Generale SA Nat.Grid N.America - Stabilisation Notice - NATIONAL GRID
AnnouncementREG - Allianz Global Invs - Top 10 Holdings
AnnouncementREG - National Grid PLC - Director/PDMR Shareholding
Announcement