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National Grid has reported an underlying pre-tax profit of £2.4billion for the year ended 31 March 2021, down 3% when compared with the year before, due to the impact of Covid-19 restrictions over the past 12 months.
The dividend per share for the period has risen 1% to 49.16p when compared to FY20.
National Grid had previously guided that the impact of COVID-19 on 2020/21 underlying operating profit was expected to be around £400 million. Having worked to mitigate Covid-19 related costs throughout the year, the estimated out-turn is £355 million (before cost recoveries), below the expected impact.
In addition, the company has recognised £59 million as revenue recovery for the commodity portion of some of its COVID-19 bad debts.
Across the Group, capital investment decreased by £210 million at constant currency to £5,047 million, a decrease of 4% (or 7% at actual exchanges rates).
This decrease was principally driven by lower UK Gas Transmission spend (completion of the River Humber Gas Pipeline Replacement Project); lower interconnector capex and non-recurrence of the National Grid Renewables (formerly Geronimo) acquisition for NGV; partially offset by higher US spend on network repairs following increased storm activity, increased US transmission project spend, and higher capital spend on UK Electricity Transmission projects (Hinkley-Seabank and London Power Tunnels 2).
National Grid also guided a cash flow impact from COVID-19 of up to £1 billion. The estimated cash impact for the full year is around £600 million.