UK's grid operator National Grid posted an adjusted operating profit of ££1.851 billion, up £15m, or 1% year on year. The period on period movement in exchange rates had a £43 million positive impact on operating profit, the company said in a statement, adding that on a constant currency basis, operating profit was down £28 m, or 1% year on year.
The Group’s "other activities" contributed £136 m less to operating profit in H1 16 on a constant currency basis, standing at £157 m. This was partly due to decreased revenues in the French electricity Interconnector business “as it returns to more normal levels of profitability this year compared to the strong profits in the prior year” given “the very high power price differential between France and the UK experienced in the first half of 2015/16 which increased the revenue generated from the auctions of the Interconnector’s capacity during this period.”
During the summer, the UK Gas Transmission business “successfully managed unseasonably high flows into Scotland, at a time when critical compressors were out of service for planned maintenance” the company said.
“The business accelerated maintenance and repair work to bring an important pipeline back online a month earlier than scheduled” it explained.
“The actions taken will also provide the UK Gas Transmission network with a higher level of resilience heading into the winter.”
Moreover, in August “the US Regulated business responded effectively when its New York service territory experienced a severe storm that cut power to more than 50,000 customers, with service restored in one day” it said.
“Effective storm response process remains a focus and the Group believes it is well prepared for the challenges in the coming winter” it added.
Over the period, National Grid also received “a positive outcome for our Massachusetts rate filing” in the US and “are in the final stages of agreeing updated rates for our downstate New York gas businesses,” National Grid's CEO John Pettigrew said.
“ Once agreed, around 40% of our US business will be operating under new agreements which will enable us to improve future returns in the US” he added.
Moreover, in the UK the proposed sale of National Grid's distribution business “is on track with separation activity in the final stages” he said.
In November 2015, National Grid announced the potential sale of a majority stake in the UK Gas Distribution business. The sale is expected to be completed in early 2017.