- Strong operating performance *
- £802m operating profit up 36% including £206m first full period contribution from the New York operation, formerly Niagara Mohawk.
- £339m profit before tax up 24%.
- £1,197m operating cash flow up 42%.
Key strategic steps
- Merger of National Grid and Lattice completed – on track to deliver in excess of £100m annualised synergy savings by March 2004.
- UK businesses set to outperform regulatory targets.
- Integration of New York operation ahead of schedule.
- US on track to deliver the further 20% reduction in controllable costs by March 2005.
- Exit from altnet investments nearing completion.
Dividend
- Interim dividend of 6.86p per ordinary share for half year, up 6.2% in line with aim of 5% per year real growth as expressed in sterling until 2006.
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National Grid Transco
(on a pro forma basis)
Six months ended
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Six months ended
30 September 2001 |
National Grid Group
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30 September 2002 |
Lattice Group
Six months ended
30 September 2002 |
| Turnover */** |
£4,309m |
£3,221m |
£3,029m |
£1,302m |
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Operating profit/(loss) */**
Electricity & Gas £823m £606m £645m £178m
Other £(21)m £(16)m £(17)m £(4)m
Total £802m £590m £628m £174m
Net interest * £463m £317m £282m £181m
Pre-tax profit/(loss) * £339m £273m £346m £(7)m
Profit/(loss) after tax and minority interests * £244m £232m £248m £(4)m
Earnings per share * 7.9p 8.3p 14.1p (0.1)p
Operating cashflow * £1,197m £845m £841m £356m
NGT dividend per share 6.86p 6.46p***
* Before exceptional items, additional NTS auction income last year and goodwill amortisation as appropriate.
** 40% of Transco revenue and about 20% of operating profit typically fall in the first half of the financial year.
*** National Grid Group plc actual 2001 interim dividend.
Sir John Parker, Chairman of National Grid Transco, said:
“This is a strong set of results fully in line with expectations.
“We are making excellent progress in the UK and the US. In the UK, both our electricity and gas businesses are outperforming against targets for reducing controllable costs, and we will exceed the annualised £100m merger savings by March 2004. In the US, we are ahead of schedule delivering integration savings from our New York operation, and overall are confident of achieving a further 20% reduction in US controllable costs. None of this has deflected us from delivering efficient, safe and reliable energy.
“Reflecting the strength and prospects of our business, we will pay an interim dividend of 6.86p, in line with our aim to increase dividends per share by 5% a year in real terms until 2006. Looking ahead, we are confident that the skills, market position and resources of National Grid Transco will enable us to continue to deliver shareholder value.”
Contacts
National Grid Transco:
Investors
Marcy Reed +44 (0)20 7004 3170 +44 (0)7768 490807(m)
Terry McCormick +44 (0)20 7004 3171 +44 (0)7768 045139(m)
Louise Clamp +44 (0)20 7004 3172 +44 (0)7768 555641(m)
Gary Rawlinson +44 (0)20 7004 3173 +44 (0)7768 536750(m)
Bob Seega (US) +1 508 389 2598
Media
Gillian Home +44 (0)20 7004 3150
Clive Hawkins +44 (0)20 7004 3147
Jim Willison +44 (0)20 7004 3149
Pager +44 (0)7659 117841 (out of hours)
Citigate Dewe Rogerson +44 (0)20 7638 9571
Anthony Carlisle +44 (0)7973 611888(m)
The Maitland Consultancy
Angus Maitland +44 (0) 20 7379 5151
To view the full press release in PDF format click here.