National Grid shares were flat at 1,183p in early morning trading on Thursday, after the group projected moderately above-expected profit returns in its pre-close trading update ahead of its financial results for the last year.
The company confirmed that its New England, New York and National Grid Ventures business units were on track to deliver underlying operating profits in line with management guidance.
However, the firm anticipated a boost in underlying profit in its UK Electricity Distribution business units, with rising inflation driving projected profits above expectations.
The National Grid added that it expects to take on a 25% underlying effective tax rate due to an additional tax charge of approximately £100 million, reflecting the impact in its income statement of deferred tax reversing at a higher rate in future company statements.
The company projected its average expected underlying effective tax rate at a reduced level of 23% for FY 2023.
The group mentioned that it currently expects its 2022 earnings per share to deliver slightly above management guidance.
The National Grid also highlighted a selection of sales and acquisitions across its financial year, including its acquisition of Western Power Distribution on 14 June 2021.
The company confirmed that the contribution from its acquisition had been included in its financial results for the year.
The group noted that it continued to hold its UK Gas Transmission and legacy Metering businesses as discontinued operations since the sale of a majority stake in National Grid Gas on 27 March 2022, and will reportedly continue to hold the entities until the transaction closes later this year.
The National Grid also listed the ongoing sales of its Rhode Island business to PPL, with the transaction projected to close in the first quarter of the firm’s FY 2023.
The company is set to report the asset under its New England business unit until the agreement closes.
The National Grid added that it was currently working with the UK Government to manage a smooth transition as part of the administration’s plan to create a Future System Operator to shoulder the existing Electricity System Operator roles, alongside the longer-term aspects of the Gas System Operator.
The company confirmed that the transition is scheduled for completion by 2024.