National Grid expects additional £70m from ESO

(Sharecast News) - National Grid said it performed in line with expectations in its first half, though it registered an unexpected additional £70m contribution from the Electricity System Operator (ESO). The ESO, which was sold back to the government last month for £630m, put it back in public ownership for the first time in decades. It will now turn into the National ESO, or NESO.

National Grid said the additional £70m compared to guidance "reflect[ed] ownership and held for sale accounting treatment".

"Overall, the group's performance is in line with our expectations and, as usual, underlying EPS is expected to be weighted to the second half of the year," National Grid said.

The company said contributions to operating profit over the first half ended 30 September are expected to be consistent with historical periods.

In UK Electricity Transmission and UK Electricity Distribution, operating profit will be broadly evenly split across the year; in the US regulated businesses, operating profits are expected to be weighted to the second half; while in NG Ventures a roughly 40:60 weighting is predicted for operating profit between the first and second half.