UK's National Grid misses profit view as US storm damage weighs (May 14)
National Grid's Annual Profit Results and Outlook
(Corrects May 14 story to say that 636 million pounds were related to under-recoveries for the year, not storm-related costs in paragraph 3)
Profit Performance and Financial Highlights
May 14 (Reuters) - UK's National Grid missed annual profit expectations on Thursday, weighed by higher costs to repair storm-linked damage across its U.S. business, but reaffirmed its outlook and said there was limited impact from geopolitical and tariff risks.
The British electricity and gas network operator posted an adjusted operating profit of 5.68 billion pounds ($7.68 billion) for the year ended March 31, below a company-compiled consensus estimate of 5.75 billion pounds.
Revenue Under-Recoveries
It reported 636 million pounds of timing under-recoveries for the year, reflecting the difference between allowed and collected revenues across its regulated businesses.
Strategic Initiatives and Portfolio Reshaping
National Grid has been reshaping its portfolio to focus on regulated electricity and gas networks, including selling its U.S. onshore renewables arm as it ramps up investment in grid infrastructure.
Supply Chain and Tariff Impact
It does not expect major supply chain disruption from tensions in the Middle East, with growth plans unchanged, and has had limited impact from U.S. tariffs as about 90% of procurement for its U.S. business comes from local suppliers, CEO Zoe Yujnovich told Reuters in an interview on Thursday.
Future Earnings Guidance
The company reaffirmed its 2027 adjusted earnings per share forecast of 13% to 15% growth.
Market Reaction
Its shares were up 2.3% at 1,305 pence by 0846 GMT.
($1 = 0.7398 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Sherry Jacob-Phillips and Janane Venkatraman)
