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GMB On National Grid Profits

Thursday, November 21, 2013

Consumers Will Be “Flabbergasted” At Profits Levels At National Grid Sourcing Components Overseas At Expense Of Jobs In UK

National Grid workers have seen their incomes cut and they are facing cuts to pension provision too, whilst the company is posting these massive returns says GMB.

GMB, the union for energy workers, commented on the half year results for National Grid published on 21st November 2013. See notes to editors for main headlines from company website.

Gary Smith, GMB National Secretary for Energy, said “Energy consumers are going to be flabbergasted by these results from National Grid at a time when people are quite literally freezing to death.

Nobody should be any under illusions that ordinary workers are benefiting either. Many National Grid workers have seen their incomes cut and they are facing cuts to pension provision too, whilst the company is posting these massive returns.

On top of this National Grid is also sourcing most of the components and cables they are using from countries like China. National Grid is a monopoly with an 8 year order book of work under their funding formula from OFGEM. It is disgraceful that a hugely profitable UK monopoly is looking to source components from abroad rather than support the UK manufacturing supply chain.

The government has given us a load of rhetoric about jobs from the Energy Bill and the investment in energy creating jobs in the UK. People in the UK would expect companies like National Grid to be supporting jobs in the UK and it isn't happening.”

End

Contact Gary Smith 07710 618 909  or GMB press office 07974 251 823 or 07921 289880

Notes to Editors

National Grid results for half year 2013/14 published 21 November – from company website

Solid first half performance: National Grid on track for good full year result

UK: delivering good incentive performance under the new RIIO price controls

US: new rates in place; investing in enhanced capabilities to drive further improvements

Operating profit (1) 1% lower (2) at £1,572m, (3% lower at constant currency (3) excluding impact of timing (4) reflecting the expected end of Niagara Mohawk deferral income recoveries and higher SAP costs

Profit before tax (1) £979m, 7% lower reflecting the temporary additional cost of pre-financing asset growth at attractive interest rates

Earnings per share1 1% lower (5) at 20.4p, (down 3% excluding the impact of timing)

Interim dividend of 14.49p per share as announced in March 2013

No interim scrip dividend option given high level of take-up on August dividend payment

Maintaining outlook for operating performance, asset growth and earnings

2013/14 capital expenditure of around £3.5bn, net of efficiency savings, expected to drive regulated asset growth of around 6%

Overall performance in the first six months consistent with Group expectations for the full year

Conclusion and outlook

Solid start to the year

Confident of delivering returns and growth

Notes
1 Excluding exceptional items, remeasurements and stranded cost recoveries
2 Prior year numbers adjusted for the impact of changes to financial accounting standard IAS 19 (‘Employee benefits’)
3 ‘Constant currency’ comparison uses recalculated results for the first 6 months of 2012/13 using the average US$ exchange rate for the first 6 months of 2013/14
4 Timing contributed £32m to the period on period movement in operating profit at constant currency
5 Prior year EPS adjusted to reflect the additional shares issued as scrip dividends

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