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National Grid sees stormy US weather cloud earnings forecasts

The FTSE 100-listed utilities provider said the costs, totalling £140mln, are expected to be recovered by its US businesses in future periods
Lightning storm
In February, the group said it was expecting a non-cash tax credit for its full-year of around £2bn

National Grid PLC (LON:NG.) said it expects underlying earnings to be lower than original guidance as its US businesses incurred major storm remediation costs.

The FTSE 100-listed utilities provider said the costs, totalling £140mln, are expected to be recovered by its US businesses in future periods, and that the lower earnings would be “largely” offset by a finance gain and lower tax rate.

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In February, the group said it was expecting a non-cash tax credit for its full-year of around £2bn, while on 12 April, it said it expected a tax charge of 24% compared to 27% previously.

It is expecting a finance gain of approximately £60mln due to the realisation of gains on investments in its insurance captive.

National Grid shares were up 0.3% at 830.1p in mid-afternoon trading Thursday.



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