National Grid has reported a plunge in annual profits as it felt the impact of two abandoned nuclear projects and storms throughout the year. The firm, which owns and operates the UK’s energy infrastructure, made the announcement amid calls from the Labour Party to bring it under public ownership. Shares in the company slipped after pre-tax profits sank by 31% to £1.8 billion for the year to March 2019, as it was also impacted by labour disputes in the US. Stripping out one-off costs, including the cost from major storms, the company saw underlying pre-tax profit decline 3% to £2.5 billion.
Dundee Courier 16th May 2019 read more »
National Grid has reported a fall in operating profits, partly due to writing off £137 million as a result of nuclear energy projects being shelved in the UK. The grid operator lost 31% of its profits before tax, down to £1.84 billion, while its operating profit stood at £2.8 billion after an 18% drop in the year ending March. They were partly impacted by an “exceptional charge” of £137 million for the write-off of development costs of the Moorside and Wylfa Newydd nuclear projects, which have been cancelled, along with the proposed connection agreements with National Grid. It added a labour dispute in the US also resulted in a £283 million charge while its efficiency and restructuring efforts cost the grid operator a total of £204 million in both the UK and US.
Energy Live News 16th May 2019 read more »
Utility Week 16th May 2019 read more »
Labour will face legal challenges if it seeks to nationalise Britain’s power and gas networks at a knockdown price, National Grid has warned. John Pettigrew, chief executive of the FTSE 100 utility group, said there were “a whole host of legal routes companies including National Grid, or their investors, could pursue against the government if they didn’t pay fair value”. National Grid also booked a £137 million impairment after writing off almost a decade of work on planning grid connections for Nugen’s proposed nuclear plant at Moorside in Cumbria, and Horizon’s projects at Wylfa on Anglesey and Oldbury in Gloucester. Work on all three has now been abandoned and National Grid said it had concluded there was “no realistic prospect of these schemes continuing in their present form”. National Grid spent years consulting on proposals before alighting on a £2.8 billion plan that involved burying the lines through a 14-mile stretch of the Lake District and a 13-mile tunnel under Morecambe Bay.
Times 17th May 2019 read more »
Full-year profits at National Grid fell by nearly a third as the company that owns and operates vital energy infrastructure was hit by one-off factors, including having to write off funds spent to connect two planned new nuclear power stations in the UK that were subsequently cancelled.
FT 16th May 2019 read more »