National Power Announces Operating Results.LONDON--(BUSINESS WIRE)--Nov. 25, 1998-- FREEPHONE - CONFERENCE CALL FOR INTERIMS: 1 - 888 689 9351 National Power today an nounced its interim results for the half year ended 30 September September: see month. 1998. Please find attached the main statement, which includes announcement of two major UK developments. National Power would like to invite you to participate in a conference call. We will be holding the call at 10.00am Eastern Time on 25 November November: see month. 1998. After a short presentation by Roger Witcomb (CFO See Chief Financial Officer. ) you will have the opportunity to ask questions. We will be sending the presentation material by fax on 25th November 1998. If you wish to participate, please phone the freephone number about 5 minutes before the call commences. Additionally, for the first time, National Power is also offering an internet-based presentation in conjunction with our conference all. If you would like to participate in the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the presentation, please follow the following instructions. 1. To participate in the Internet presentation, you need a computer, a telephone and an Internet connection. 2. Go to number, follow the download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. instructions to add the mshsetup 3. Double click on the mshsetup.exe icon to add the M.Show icon to your desktop. 4. To ensure your ability to join the show, double click the M.Show icon on your desktop. Complete the required registration information. Look for the screen that says "connection test completed, you are ready to participate in a live M.Show" 5. If you see the "connection test completed, you are ready to participate in a live M.Show" screen, then disconnect disconnect - SCSI reconnect and join the M.Show by repeating step 4 approximately ten minutes before the start time of the conference call. Once you have joined the M.Show, please remember to dial the teleconference to join the audio portion of the show as well (number is listed above). If your connection test was unsuccessful, or if you have any questions please call 888 457 7469 (from the US) or 303 749 5049 any time Monday Monday: see week. to Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant . Key Points -- Major UK developments announced today - acquisition of Midlands Electricity The Midlands Electricity Board was formed in 1947, under the Electricity Act of that year. The counterpart of the East Midlands board, it served southern, and western parts of Warwickshire, as well as the counties of Worcestershire, Herefordshire, Shropshire, and Staffordshire, as supply business. - intended sale of Drax Drax could refer to:
coal-burning fueled - heated, driven, or produced by burning fuel power station. -- Strong UK performance - output up by 16%. - operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. up as a result of increased sales. -- Continuing international development - major new investments in the USA and Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. . - consolidation of position in Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. . -- Group earnings down, due to lower overseas contribution. -- Interim Dividend of 9.4p per share, enhanced by 0.2p to 9.6p to reflect payment in April 1999.
Half year to Year to
30 September 31 March
Summary results 1998 1997 1998
(Restated) (Restated)
Pounds m pounds m Pounds m
Group profit before tax
and prior year exceptional
items 217 260 728
Tax on ordinary activities (37) (48) (138)
Minority interests - (4) -
--- --- ---
Profit after taxation and
minority interests but
before exceptional items 180 208 590
___ ___ ___
Earnings per share before
prior year exceptional
items 14.7p 17.1p 48.5p
Underlying dividend per
share 9.4p 9.0p 27.0p
Gearing ratio, excluding
non-recourse debt 51% 55% 50%
Segmental analysis
International business 37 67 130
UK business 223 222 661
Corporate costs, development
and interest (80) (81) (201)
___ ___ ____
Profit after taxation and
minority interests but before
exceptional items 180 208 590
___ ___ ____
KEITH Keith may refer to: People with the given name Keith:
Our announcement today of two major developments designed to transform National Power's UK business into a leading, integrated energy business represents a major step forward in our overall strategy. We intend to remain one of the world's leading international power companies, with a stronger, more broadly-based UK energy business. We expect that completion of the acquisition of Midlands Electricity's retail supply business and the sale of Drax 4,000MW power station will address regulatory uncertainty by increasing competition to the benefit of the customer, and fulfilling the requirement to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. further coal-fired plant. The Interim Results reflect a strong performance in the UK, and the impact on international returns of recent developments in certain overseas markets. In the UK, sales volume was up, reflecting good operational performance by our power stations, lower competitor plant availability and the effect of unseasonal weather conditions during the summer months. Further good progress has been made by our Cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. and Wind businesses. They are both now market leaders. International earnings were disappointing following the major increases in their contribution over the last two years. Returns were significantly affected by the impact of actions taken by WAPDA WAPDA Water And Power Development Authority (Pakistan) and the Government of Pakistan Government of Pakistan (Urdu: حکومتِ پاکستان), The Constitution of Pakistan provides for a Federal Parliamentary System of government, with a President as the Head of State and an indirectly-elected Prime , which have called into question the contract tariffs This is a list of tariffs and trade legislation:
See: International Monetary Fund IMF See International Monetary Fund (IMF). are similarly concerned to resolve the current situation. We have announced further investments in a range of international projects, primarily in developed markets. These include, most notably, plans to build a 1,100MW CCGT CCGT Combined Cycle Gas Turbine CCGT Chicago Center for Green Technology CCGT Combined-Cycle Generating Technology CCGT catalytic combustion gas turbine in Texas, as part of a US $1.6 billion investment programme, and announcement of a strategic alliance with Union Electrica Fenosa S.A. of Spain, together with our 25% equity investment in their new 8,200MW generation subsidiary. During the period we have also built upon our initial 1997 investment in the Czech company, Elektrarny Opatovice, and have initiated an investment programme of up to US $78 million in Kazakhstan Kazakhstan or Kazakstan (kä'zäkstän`), officially Republic of Kazakhstan, republic (2005 est. pop. 15,186,000), c.1,050,000 sq mi (2,719,500 sq km), central Asia. . In total our committed overseas investments now amount to over 2 billion pounds with interests in some 20,000MW of generation capacity in 11 countries other than the UK. The UK developments announced today are described more fully in the Appendix to this statement, and our continuing success in winning new business overseas should provide us with a strong competitive platform for growth worldwide. DIVIDENDS The directors are declaring an underlying interim dividend of 9.4p net per share. Following the announcement earlier this year by the Chancellor of the Exchequer Chan·cel·lor of the Exchequer n. The senior finance minister in the British government and a member of the prime minister's cabinet. Chancellor of the Exchequer Noun Brit that Advance Corporation Tax will be abolished with effect from 6 April 1999, the directors have decided to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. the payment of the interim dividend until that date. The benefit to the company is a saving of approximately 29 million pounds of ACT which would otherwise be charged against profit in 1998/99. The Board has also decided to pay an enhancement of 0.2p net per share on the underlying 9.4p interim dividend, to reflect the delay in payment. The enhancement equates to interest at about 8.5% per annum Per annum Yearly. . The Board does not intend to offer a scrip dividend scrip dividend An unusual type of dividend involving the distribution of promissory notes that call for some type of payment at a future date. Scrip dividends generally signal that a firm is short of cash. Compare liability dividend. alternative on the interim dividend. The Directors will consider further limited reductions in dividend cover, allowing continuing real dividend growth to be maintained. CURRENT TRADING For the full year, international earnings are expected to be lower than in 1997/98. However, our expected UK output is covered by contracts and our continued good performance in the UK gives us confidence that Group earnings overall will be satisfactory. BUSINESS REVIEW UK UK operating profit was up by 14 million pounds, to 326 million pounds. Sales through the Pool of 31.4TWh were some 16% higher than for the equivalent period in 1997/98. The increase in output was attributable to unseasonal weather conditions, lower competitor plant availability and high performance of our plant, including output from our newly commissioned 1,370MW Didcot B CCGT power station. Average gross margins fell, following the ending of the coal-backed electricity sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. on 31 March 1998, in line with our expectations announced earlier this year. Following the temporary withdrawal from service of FGD FGD Fire & Gas Detection FGD Flue Gas Desulfurization FGD Focus Group Discussion FGD Feature Group D FGD Forged FGD Familial Glucocorticoid Deficiency plant at Drax power station Drax is a large coal-fired power station located near Selby in North Yorkshire in Northern England. due to the discovery of structural faults towards the end of 1997/98, the Environment Agency has allowed an increase in sulphur dioxide sulphur dioxide Noun Chem a strong-smelling colourless soluble gas, used in the manufacture of sulphuric acid and in the preservation of foodstuffs Noun 1. emission limits, thereby securing continued generation plant availability. All of the six FGD units have now been returned to service. Scheduled maintenance on outages of plant during the summer months has been completed, ahead of the winter period. The programme has demonstrated the value of the company's technical alliance with Mitsui Mitsui: see zaibatsu. Babcock Babcock is a surname that can refer to: People
Adj. 1. oil-fired - fueled by burning oil; "an oil-fired furnace" fueled - heated, driven, or produced by burning fuel oil-fired boiler boiler, device for generating steam. It consists of two principal parts: the furnace, which provides heat, usually by burning a fuel, and the boiler proper, a device in which the heat changes water into steam. maintenance. Construction work on our advanced design (1,500MW) CCGT at Staythorpe, which will in due course increase our UK CCGT portfolio to around With regard to the proposed new electricity trading arrangements, we support the need for changes to the current system. We will play our part in assisting the Department of Trade and Industry The Department of Trade and Industry was a United Kingdom government department which was disbanded with the announcement of the creation of the Department for Business, Enterprise and Regulatory Reform on 28 June 2007[1]. and the Electricity Regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. in the development and implementation of the new arrangements. INTERNATIONAL Existing Operations Our international assets performed well. However, their earnings contribution of 37 million pounds was disappointing, when compared with 67 million pounds for the equivalent period last year. The fall in earnings was largely attributable to developments in Pakistan which have affected the contribution from our Hub and Kot Addu power station assets. We have made provision for debts still outstanding from WAPDA in respect of income earned by both stations up to 30 September 1998, with a consequential con·se·quen·tial adj. 1. Following as an effect, result, or conclusion; consequent. 2. Having important consequences; significant: reduction in their equity earnings for the period. While we are hoping for an early resolution of the issues which have affected our interests in Pakistan, it is expected that the events of the first half will have an adverse impact on our full year international earnings profile. It is however too early to quantify Quantify - A performance analysis tool from Pure Software. the full year effect. We believe that we have high quality overseas plant, capable of performing strongly in the future and of contributing positively to Group earnings. We aim to achieve a balance in our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and over 80% of our committed investments are in the developed markets. In this regard our risk profile has been significantly enhanced in recent months through our committed major investments in America and in Spain, and the consolidation of our position in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. . Earnings from the 1,600MW Hazelwood plant in Australia were up for the period. This plant has performed well both operationally and commercially during the first half. Construction is continuing on National Power's first project in Turkey, the greenfield Greenfield, town (1990 pop. 18,666), seat of Franklin co., NW Mass., at the confluence of the Deerfield and Green rivers, near their junction with the Connecticut; settled 1686, set off from Deerfield and inc. 1753. 480MW CCGT at Marmara, in which we have a one third stake. The station is expected to be operational in the first quarter of 1999. New Investments and Development Projects America We are building a 1,100MW combined cycle A combined cycle is characteristic of a power producing engine or plant that employs more than one thermodynamic cycle. Heat engines are only able to use a portion of the energy their fuel generates (usually less than 50%). The remaining heat from combustion is generally wasted. gas turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. plant at Midlothian, Texas Parameter not given Error... ''Template needs its first parameter as beg[in], mid[dle], or end. Parameter not given Error... , the first in a series of major new gas-fired power stations in National Power's planned US $1.6 billion investment programme over the next three years. The Midlothian Plant will be our first US greenfield development. Project costs will be more than US $350 million and will be 100% funded by National Power. Construction work by ABB n. 1. Among weavers, yarn for the warp. Hence, Noun 1. ABB - an urban hit squad and guerrilla group of the Communist Party in the Philippines; formed in the 1980s has begun and the power station is scheduled to be operational in the summer of 2000. An initial two year power purchase agreement has been signed with Texas Utilities for 1,000MW of the plant's output. The station's high efficiency and environmental performance are expected to prove very competitive in the mature Texas electricity market. Through our subsidiary company, American National Power (ANP ANP atrial natriuretic peptide. ANP atrial natriuretic peptide. ANP Atrial natriuretic peptide, see there ), our committed US power station portfolio now totals 2,643MW. A further range of developments is underway via ANP which should enable National Power to progress its strategy for increased plant ownership in the US. Europe Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. Following our acquisition in October 1997 of a 48% stake in Elektrarny Opatovice (EOP EOP Educational Opportunity Program (California State University) EOP Executive Office of the President EOP Equity Office Properties Trust (ticker) EOP Emergency Operations Plan EOP Earth Orientation Parameters ) for 92 million pounds, we have demonstrated our confidence in this company and consolidated our stake with a further acquisition of shares. We now hold a 96% interest in EOP, representing a total investment of 140 million pounds. EOP's assets are performing well. International earnings for the period reflect the seasonal nature of EOP's business; the company's earnings will be strongly positive in the second half. Poland We have been awarded exclusive negotiating rights for the 2,700MW lignite lignite (lĭg`nīt) or brown coal, carbonaceous fuel intermediate between coal and peat, brown or yellowish in color and woody in texture. fired station company, Zespol Elektrowni Patnow- Adamow-Konin S.A. (PAK PAK, n.pr See pyridoxal-alpha-ketoglutarate. ), whose assets are located 200km west of Warsaw Warsaw (wôr`sô), Pol. Warszawa, city (1993 est. pop. 1,655,700), capital of Poland and of Mazowieckie prov., central Poland, on both banks of the Vistula River. in Poland. The deal would involve National Power acquiring a 20% equity stake in PAK from the State Treasury Ministry, with a commitment to increase this to a 38.5% stake. The sale will be the first privatisation Noun 1. privatisation - changing something from state to private ownership or control denationalisation, denationalization, privatization social control - control exerted (actively or passively) by group action of a system power generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. within the Polish electricity industry as it moves towards a competitive and liberalised market. National Power's investment would enable us, as a strategic investor with management control, to participate in the operation, refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur and renewal of the stations. The company supplies 11% of Poland's electricity and our participation would further extend our interests in Europe and our expertise in the operation of 'brown coal' plant. Spain National Power has reached agreement to invest around 410 million pounds in a new company that will own the generation assets of Union Electrica Fenosa S.A. (UEF UEF United Earth Federation (Gundam Wing anime) UEF Union Europäischer Föderalisten (German) UEF Uninsured Employers' Fund UEF United Engineering Foundation ), Spain's third largest generator with a 13% share of its home market. Under the agreement we will take a 25% stake in Union Fenosa Generacion S.A. (UFG UFG Universidade Federal de Goiás UFG United Financial Group UFG Up for Grabs UFG United Freight Global UFG United Food Group Inc (Elgin, IL) UFG Unravel Flow-Graph ), which will own UEF's interests in around 8,200MW of capacity in Spain. We are also to form an international strategic alliance jointly to develop power projects in selected world markets. This will be run by an international committee comprising representatives of both companies. The final consideration, which will be 100% funded by the company, includes an element which is conditional on the securitisation of 'stranded cost payments' to be paid by the Spanish Government
The Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. electricity market is one of the most attractive in Europe, with a stable, growing economy, and the transaction will give us a material stake in a large existing generator, where we can add value through our liberalised market skills and experience in global power markets. The alliance will enable UEF and National Power to take advantage of common geographical areas of interest and of our complementary strengths. We believe that this long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. co-operation will provide shareholder value for both companies. Turkey Our plans to invest in three further power station projects in Turkey, for which we have exclusive negotiating rights, are also progressing. Of this programme, our planned investment for a 42.5% stake in 1,680MW of existing lignite-fired plants with associated mines is unlikely to reach financial close until after the year end, later than originally planned. Progress through the Turkish authorities has been slower than expected, but an earnings contribution from this plant is now being forecast for 1999/2000. Other Countries Kazakhstan National Power has entered into a partnership with Ormat, an Israeli and US based engineering and manufacturing company to purchase, operate and develop generating plant, district heating District heating (less commonly called teleheating) is a system for distributing heat generated in a centralized location for residential and commercial heating requirements. and distribution systems supplying Kazakhstan's second largest city, Karaganda. The transaction has involved the purchase for US $20 million of a 50% stake in the Karaganda Power Company (KPC "Keeping parents clueless." See digispeak. ) which has a capacity of some 635MWe and 1,500MWth and a 35% stake in Karaganda Regional Electricity Company (KREC KREC Karnataka Regional Engineering College (India) KREC Karnataka Regional Engineering College ) which supplies some 400,000 customers. Under the partnership arrangements we are investing up to a further US $58 million, including the progressive refurbishment and extension of the KPC and KREC assets over the next three years. A National Power management team has now joined its Ormat counterparts in Karaganda and is embarked on its planned programme to achieve maximum value from these assets. Malaysia We have now completed our planned acquisition of around 15% of the equity shares in Malakoff Berhad, the leading Malaysian independent power company with interests in around 1,700MW of power plant in Malaysia. National Power has invested 73 million pounds in Malakoff and has entered into an alliance as their exclusive foreign partner and investor in future Malaysian energy projects. Our country management team is now working actively with Malakoff to develop further initiatives and to build positively on their proven management capabilities in the region. We have around 30 international projects under various stages of development or assessment, representing some 25,000MW (gross) of assets. COGENERATION AND WIND POWER Our Cogeneration and Wind Power businesses have made excellent progress. Their combined sales revenue has increased from 26 million pounds to 40 million pounds. During the period, National Power Cogen announced fifteen year contracts with two new customers, AM Paper Cellufibre Ltd and Bridgewater Paper Company Limited to supply electricity and steam from combined heat and power (CHP CHP Chapter CHP Combined Heat and Power CHP California Highway Patrol CHP Cumhuriyet Halk Partisi (Turkish: Republican People's Party) CHP Chemical Hygiene Plan (OSHA) CHP Community Health Plan ) plant on their sites at, respectively, Skelmersdale in Lancashire Lancashire (lăng`kəshĭr, –shər), county (1991 pop. 1,365,100), 1,878 sq mi (4,864 sq km), N England, on the Irish Sea. The county town is Lancaster. and Ellesmere Port Ellesmere Port, town and district (1991 pop. 78,800), Cheshire, W central England. Ellesmere Port, located on the Manchester Ship Canal near its junction with the Shropshire Union Canal and the entrance into the Mersey estuary, is the principal town of the district. in Cheshire. At the period end our committed Cogeneration investments totalled some 310 million pounds comprising 15 contracts to date, totalling 545MW electrical and 1175MW thermal capacity thermal capacity: see heat capacity. . National Wind Power Limited (NWPL NWPL Naval Warfare Publications Library ) has acquired the development rights to a site in Texas, USA with the potential for 250MW of capacity. The first 30MW phase of this project is expected to be completed by mid 1999. In the UK, NWPL now operates 132MW of commercial wind capacity and has a further 8MW under construction. This makes us the market leader, our operational portfolio representing over 40% of the UK market share for wind farms built or under construction. In addition we won contracts representing some 350MW of installed capacity in the government's latest round of bidding for support for the development of renewable technologies. FINANCIAL RESULTS Comparisons are based on results before the exceptional items : comparative figures have been restated to reflect the adoption of changes in accounting policies set out in the Notes to the Accounts. Group Profits Operating profits were down by 17 million pounds to 272 million pounds. Profit before tax and exceptional items was 217 million pounds compared with 260 million pounds in the previous half year. The period showed a reduced contribution from the international business and an increase in interest and costs reflecting our growing international business development activities. UK Earnings UK operating profits were up 14 million pounds to 326 million pounds. Output was up 16% at 31.4TWh and market share was up from 20.5% to 23.3% but gross margins fell, as expected, by 55 million pounds following the end of the five year coal-backed contracts. A 59 million pounds benefit, due to a reduction in the impact of provisions, and 10 million pounds of lower power station running costs running costs npl [of business] → gastos mpl corrientes [of car] → gastos mpl de mantenimiento running costs npl [of business more than offset the lost margin. Operating costs operating costs npl → gastos mpl operacionales fell by 119 million pounds to 907 million pounds. The contract to supply fuel to the power stations divested in 1996 ceased during the period, giving rise to a saving of 93 million pounds. While the cost of fuel for power generation rose by 17 million pounds, reflecting our increased output, this was net of a 47 million pounds saving achieved through a 10% fall in fuel cost per unit generated. Gas trading costs Trading costs Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, slippage, and the bid/ask spread. See: Transactions costs. increased by 21 million pounds as a result of purchases made under take or pay agreements, in excess of our generation requirements. International Earnings Our operational assets overseas delivered profit after tax and minorities of 37 million pounds for the period compared to 67 million pounds achieved for the same period last year, largely as a result of a lower contribution from our investments in Pakistan. Corporate and Development Costs The net cost of providing corporate and development activities of 89 million pounds was up from 82 million pounds in the corresponding period before exceptional items due to an 11 million pounds increase in development costs, mainly relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc international investments. Interest Net interest costs increased marginally from 55 million pounds to 59 million pounds. Taxation The effective rate of taxation, which fell from 19% to 17%, benefits substantially from the structure of the 1996 plant divestment divestment to strip one's investment from an entity. transaction. As a result, the tax charge on ordinary activities fell from 48 million pounds to 37 million pounds. The company increased Advance Corporation Tax efficiency to the value of some 22 million pounds as a result of the enhanced scrip dividend alternative to the 1998 final cash dividend offered to shareholders during the period. Exceptional items There are no exceptional items relating to the first half of the 1998/99 financial year. Earnings per share Earnings per share fell from 17.1p to 14.7p reflecting a fall in profit after taxation and an increase in the average number of shares in issue, largely attributable to the issue of New Shares under the company's 1998 enhanced scrip dividend alternative. Dividends An enhanced scrip dividend alternative was offered to shareholders in respect of the 1998 final cash dividend of 18 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, per share paid on 18 August 1998. Holders of 40.3% of National Power's issued share capital elected to receive the New Shares under the enhanced scrip dividend alternative. The relevant price for calculating the basis of allotment A portion, share, or division. The proportionate distribution of shares of stock in a corporation. The partition and distribution of land. ALLOTMENT. Distribution by lot; partition. Merl. Rep. h.t. in respect of the enhanced scrip dividend alternative, was 516.333 pence. For the information of shareholders who elected to receive the New Shares, the Cash Equivalent Value of the New Shares on 18 August 1998, for the purpose of calculating income tax in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Inland Revenue Inland Revenue Noun (in Britain and New Zealand) a government department that collects major direct taxes, such as income tax Noun 1. rules, was 578.75 pence. An interim dividend of 9.6p net per share will be paid on 6 April 1999. This comprises an underlying dividend of 9.4p, and an enhancement of 0.2p, in recognition of the later payment date. No scrip dividend alternative will be offered on this interim dividend. Manpower Staff numbers at the half year were 4,419 compared with 4,321 at 31 March 1998. Of these 1,193 (27%) were employed on our international operations. Capital Investments Capital investment (excluding that financed by non-recourse debt Non-Recourse Debt A loan that is secured by some sort of collateral, usually property. The issuer can seize the collateral if the borrower defaults. Notes: These types of projects are characterized by high capital expenditures, long loan periods, and uncertain revenue ) on a cumulative basis since the establishment of the company amounted to 5 billion pounds, of which 290 million pounds was incurred during the period. This comprised some 75 million pounds investment in 'cleaner' UK plant, including Cogeneration projects and 171 million pounds on international assets, most notably 48 million pounds on EOP in the Czech Republic, 73 million pounds on Malakoff in Malaysia, and 12 million pounds on Karaganda in Kazakhstan. Debt:Equity Net debt at 30 September, excluding non- non- word element [L.]not . non- pref. Not: noninvasive. recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. project debt of 453 million pounds relating to the Hazelwood project, was 1,293 million pounds, up from 1,210 million pounds at 31 March 1998. As a result, the gearing ratio Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. increased marginally to 51%. It is currently expected that the gearing ratio will be broadly unchanged at the year end. The gearing ratio, inclusive of inclusive of prep. Taking into consideration or account; including. the non-recourse debt, was 69%. Shareholder Funds Shareholders' funds increased from 2,271 million pounds to 2,415 million pounds due to the effect of the take-up of the 1998 enhanced scrip dividend of 89 million pounds and retained profits of 61 million pounds. 19,211,010 new shares were allotted al·lot tr.v. al·lot·ted, al·lot·ting, al·lots 1. To parcel out; distribute or apportion: allotting land to homesteaders; allot blame. 2. during the period. Prior year adjustments Prior year adjustments of 320 million pounds arise following the adoption of FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 12 on provisions and the capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper of interest on project expenditure during the course of construction. A full explanation of these changes is provided in the Notes to the Accounts. Two major UK developments National Power today announced two major developments designed to transform the Company's UK operations into a leading, integrated energy business, well positioned for the fully competitive market, whilst also addressing regulatory uncertainty. National Power is: -- acquiring Midlands Electricity's retail supply business, including its customers, employees, power purchase agreements, and use of brand names, for 180 million pounds -- announcing its intention to sell Drax 4,000MW coal-fired power station. The acquisition will involve the first separation of ownership of a regional electricity company's electricity distribution and supply businesses. This represents a major step forward, consistent with the Company's strategy to acquire electricity supply business customers without the low-return distribution operation, and in line with Government policy. These developments will result in National Power's UK operations being a strong, more broadly-based energy business, and provide a firm foundation for the Company to continue to be a leading international power business. They are expected to provide a competitive platform for growth in the UK, as the domestic market opens up to competition, and new electricity trading arrangements are introduced. The Company is also exploring other opportunities, in line with its objective to be the UK's leading energy supplier. Acquisition of Midlands' supply business National Power has reached agreement with Midlands to acquire its 2.2 million customer supply business. The unification (programming) unification - The generalisation of pattern matching that is the logic programming equivalent of instantiation in logic. When two terms are to be unified, they are compared. of National Power's UK generation and Energy Direct supply operations with Midlands' supply business will enable the Company to create a leading force as an energy business, and to participate fully in the liberalisation n. 1. Same as liberalization. Noun 1. liberalisation - the act of making less strict liberalization, relaxation alleviation, easement, easing, relief - the act of reducing something unpleasant (as pain or annoyance); "he asked the nurse of domestic markets. It will establish an innovative energy business: - delivering vigorous competition and improved standards of service for electricity customers - with a balanced and flexible portfolio of generating plant - with synergies between the two supply operations and scope for further efficiency improvements - offering a combination of generation and supply expertise that will provide wider opportunities for international expansion. The combined businesses of National Power's Energy Direct and Midlands' supply operations will represent around 2% of the total electricity supply market in England and Wales England and Wales are both constituent countries of the United Kingdom, that together share a single legal system: English law. Legislatively, England and Wales are treated as a single unit (see State (law)) for the conflict of laws. . Energy Direct's national business of very large industrial and commercial customers will be a good fit with Midlands' supply business which primarily has small industrial and domestic customers. Midlands' marketing brands will continue to be used in its regional area. Under the agreement, Midlands will continue to hold the Public Electricity Supply Licence. National Power will own the supply business, and be responsible for supplying the tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic customers as Midlands' agent. Regulatory clearance of the arrangements is expected to be forthcoming. National Power will pay to Midlands a cash consideration of 180 million pounds, subject to adjustment based on the level of working capital at completion, funded from existing resources. The agreement is subject to conditions relating to regulatory clearance. Completion is expected in the Spring of 1999. For the year ended 31 March 1998, as extracted from the Midlands Electricity regulatory accounts, and adjusted where appropriate, Midlands' supply business had a turnover of 1.14 billion pounds, generated a profit before tax of 19 million pounds and had net liabilities of 24 million pounds at that date. Intended sale of Drax Power Station National Power believes the sale of Drax Power Station will meet the Government and Electricity Regulator's requirement for the practical disposal of plant to increase competition. The disposal is expected to involve a straight sale on a competitive basis. Drax, in North Yorkshire North Yorkshire, county (1991 pop. 698,800), 3,209 sq mi (8,313 sq km), N England. The county comprises the districts of Craven, Hambleton, Harrogate, Richmondshire, Ryedale, Scarborough, Selby, and York. , is a 4,000MW modern coal-fired power station, and meets the Government's preference that plant to be disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of should be `good quality'. The station is fitted with a 640 million pounds flue gas Flue gas is gas that exits to the atmosphere via a flue, which is a pipe or channel for conveying exhaust gases from a fireplace, oven, furnace, boiler or steam generator. Quite often, it refers to the combustion exhaust gas produced at power plants. desulphurisation (FGD) plant, and special burners to reduce emissions of oxides of nitrogen. Its six, 660MW units are the UK's most efficient and cleanest coal-fired plant. Drax produced 24.7TWh of the Company's total UK output of 60.3TWh in 1997/98. The station sale and continuing new entry in generation will result in a significant reduction in National Power's market share. This might be expected to fall from 21% in 1997/98 to 15% if Drax is sold in September, 1999, and would be equivalent to 12% on a full year basis, in 1999/2000. National Power believes the sale of Drax, its highest load factor coal-fired plant, will achieve `full value' for shareholders. The sale, which will be subject to shareholder approval, is expected to be completed during 1999. The sale of Drax will create a better balance in the Company's UK portfolio and be a good fit with its supply strategy. Its generating portfolio will include a mix of highly efficient gas- fired plant, coal and oil stations capable of providing electricity for base load (continuous running), mid-merit and peak demands. Around 80% of the Company's UK output in the future will be provided by gas-fired plant. This mix of plant will enable the Company to meet its environmental obligations. Keith Henry, National Power's Chief Executive, said: "These developments will position us as a market-led energy business in the UK, well equipped to succeed in the developing domestic energy markets, while increasing the range of overseas opportunities open to us. "We are delighted to be leading the way in the separation of electricity distribution and supply, which is, of course, in line with Government policy. "We confidently expect these developments will increase competition to the benefit of the customer, and meet the Government and Regulator's requirement for divestment. At the same time, the sale of Drax will raise a substantial sum of cash for the Company. "The transformation of our UK business presents us with exciting opportunities and challenges. We are particularly pleased to have reached agreement to acquire Midlands' supply business. We have been very impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: by the way its management and staff have developed one of the energy industry's most competitive supply operations. We very much look forward to them joining National Power and helping us to seize seize v. To exhibit symptoms of seizure activity, usually with convulsions. the new opportunities and to meet the challenges successfully." "These major UK developments and our continuing success in winning new business overseas will provide us with a strong, competitive platform for growth worldwide." Mike Hughes Mike Hughes (b. November 17, 1974) is an Canadian professional wrestler who has competed on the North American independent promotions throughout the late 1990s and early 2000s as a co-founder and mainstay of Real Action Wrestling [1] , Chief Executive of Midlands Electricity, said: "We are very pleased with this deal. We have developed our supply operation into a strong, highly competitive and efficient business but this is a tremendous opportunity for it to become part of a major British-based international company which is determined to win a big share of the UK market. "At the same time, successfully separating supply from distribution enables us to concentrate on developing our other businesses."
National Power PLC
CONSOLIDATED UNAUDITED ACCOUNTS
for the half year ended 30 September 1998
PROFIT AND LOSS ACCOUNT Note Half Half
year year Year
1998/9 1997/8 1997/8
(restated) (restated)
pounds m pounds m pounds m
Turnover 1,353 1,458 3,354
Operating costs (including (1,081) (1,169) (2,571)
exceptional operating items)
------- ------- -------
Operating profit 272 289 783
Net interest (59) (55) (116)
Share of profit before tax of 4 37 72
associates and joint ventures
Profit on ordinary activities before
taxation and exceptional items 217 260 728
Exceptional operating item 4 - 11 11
Profit on ordinary activities 217 271 739
before taxation
Tax on profit on ordinary activities (37) (48) (138)
Windfall tax - exceptional item 4 - (266) (266)
------- ------- -------
Profit/(loss) after taxation 180 (43) 335
Minority interests - (4) -
------- ------- -------
Profit/(loss) for the period 180 (47) 335
Ordinary dividends 5 (119) (109) (329)
------- ------- -------
Retained profit/(deficit) 61 (156) 6
======= ======= =======
Basic earnings per share 6 14.7p 17.1p 48.5p
before exceptional items
Attributable to exceptional items - (21.0)p (21.0)p
------- ------- -------
Basic earnings per share 6 14.7p (3.9)p 27.5p
after exceptional items
Diluted earnings per share after 14.6p (3.9)p 27.4p
exceptional items
Ordinary dividend per share 9.6p 9.0p 27.0p
(including 0.2p enhancement in
1998/99)
BALANCE SHEET 30 Sept 30 Sept 31 March
1998 1997 1998
(restated)(restated)
pounds m pounds m pounds m
Tangible fixed assets 4,251 4,497 4,278
Intangible asset (1) - (5)
Fixed asset investments 605 488 577
------- ------- -------
Total fixed assets 4,855 4,985 4,850
------- ------- -------
Stocks 125 230 167
Debtors 669 780 665
Investments, cash and short term 866 641 1,069
deposits
Creditors: amounts falling due (1,115) (1,425) (1,335)
within one year
------- ------- -------
Net current assets 545 226 566
------- ------- -------
Total assets less current liabilities 5,400 5,211 5,416
Creditors: amounts falling due (2,667) (2,623) (2,824)
after more than one year
Provisions for liabilities and
charges (188) (225) (186)
------- ------- -------
Net assets employed 2,545 2,363 2,406
======= ======= =======
Shareholders' funds 2,415 2,106 2,271
Minority interests 130 257 135
------- ------- -------
Total equity 2,545 2,363 2,406
======= ======= =======
Comparative figures have been restated following changes in
accounting policies - Note 1
MOVEMENT IN SHAREHOLDERS' FUNDS
Note Half Half
year year Year
1998/9 1997/8 1997/8
pounds m pounds m pounds m
Profit/(loss) for the period 180 (47) 335
Scrip dividend share issue 89 - -
Ordinary dividends (119) (109) (329)
Other share issues 4 15 24
Goodwill written off (6) (3) -
Exchange differences (4) 3 (6)
------ ------ ------
Net increase/(decrease) in 144 (141) 24
shareholders' funds
Shareholders' funds at 31 March 1998 2,271 2,247 2,247
------ ------ ------
Shareholders' funds at 30 Sept. 1998 2,415 2,106 2,271
====== ====== ======
CASH FLOW STATEMENT
Net cash inflow from operating 7 422 146 819
activities
Returns on investment and servicing (45) (77) (138)
of finance
Tax (paid)/recovered (20) 224 -
Capital expenditure and financial (119) (84) (140)
investment
Acquisitions and disposals (197) (58) (232)
Equity dividends paid (126) (230) (341)
------- ------ ------
Net cash outflow before liquid (85) (79) (32)
resources & financing
Management of liquid resources 42 (195) (447)
Financing (118) 266 665
------- ------ ------
(Decrease)/increase in cash (161) (8) 186
======= ====== ======
NET DEBT
Decrease/(increase) in cash 161 8 (186)
Decrease/(increase) in liquid 42 (195) (447)
resources
(Decrease)/Increase in financing debt (121) 239 625
Non-cash movements (57) (73) (183)
------- ------ ------
Net increase/(decrease) in debt 25 (21) (191)
Net debt at 31 March 1998 1,721 1,912 1,912
------- ------ ------
Net debt at 30 September 1998 1,746 1,891 1,721
======= ====== ======
Debt/equity ratio (excluding 51% 55% 50%
non-recourse debt)
Debt/equity ratio (including 69% 80% 72%
non-recourse debt)
NOTES TO THE ACCOUNTS 1. Accounting policies Except as disclosed below, the accounts for the half year ended 30 September 1998 have been prepared using the same accounting policies as those adopted in the accounts for the financial year ended 31 March 1998. For the purposes of the interim accounts, major repair costs are charged to operating profit by reference to energy output in the half year as a proportion of the projected output for the full year. In the comparative figures for the previous half year, the proportion of contracted electricity receipts which relate to capacity were allocated evenly over the year. In the period ended 30 September 1998 capacity related income was received broadly in line with the associated fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . The comparative figures have been restated to reflect the adoption of the following changes to accounting policies: The group has adopted Financial Reporting Standard 12 (FRS12) which requires provisions to be made for losses only where obligations exist. This has resulted in net releases of provisions made in prior periods, principally relating to liability and damage claims and major plant repair costs as set out below. Prior to the adoption of FRS12, major plant repair costs were charged to the profit and loss account on the basis of the long term trend underlying the actual incidence of major repairs, with the difference between the amount so charged and the actual expenditure being dealt with through provisions. Following the adoption of FRS 12, hot gas path turbine blades, which represent a large proportion of major plant repair costs, are capitalised and depreciated Depreciated may refer to:
Given the increasing level of project development expenditure in the Group and in view of accepted international accounting practice, the directors consider that it is appropriate to adopt a policy of capitalising interest on project expenditure during the course of construction, giving rise to a prior year adjustment of 295 million pounds. The impact of these accounting policy changes on the interim figures and their comparatives are as follows:
Adjustment
Adjustment to Profit to Balance
Half Year Half Year Year to Sheet at
to 30.9.98 to 30.9.97 31.3.98 31.3.98
pounds m pounds m pounds m pounds m
Reduction in Provisions:
Rationalisation & - 6 2 (5)
Restructuring
Liability and damage claims - - - 29
Major plant repair costs 5 (5) (4) 15
---- ---- ---- -----
5 1 (2) 39
Depreciation of hot gas (5) (4) (7) (14)
turbine blades
Capitalisation of interest 2 9 17 295
---- ---- ---- -----
Total adjustments 2 6 8 320
==== ==== ==== =====
2. Abridged accounts The accounts for the year ended 31 March 1998 are abridged. This interim report should be read in conjunction with the full accounts for that year, on which the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together have made an unqualified report, and which have been delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . 3. Segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. Analysis
Int'l UK Corp. &
Half year - 1998/99 Bus. Bus. Develop. Total
(pounds m)
Sales of electricity - 88 884 - 972
wholesale
Sales of electricity - retail, - 224 - 224
cogeneration and renewables
Divestment income - 100 - 100
Gas sales - 21 - 21
Miscellaneous income 25 4 7 36
----- ------ ----- -----
Turnover 113 1,233 7 1,353
----- ------ ----- -----
Fuel consumed for power station (16) (382) - (398)
generation
Cost of sales - retail, - (200) - (200)
cogeneration and renewables
Cost of divested fuel sales - (8) - (8)
Gas purchased for resale - (31) - (31)
Other direct costs 1 - - 1
----- ------ ----- -----
Total direct costs (15) (621) - (636)
Depreciation (23) (111) (23) (157)
Staff costs (13) (35) (33) (81)
Power station and property costs (16) (152) - (168)
Provisions (2) 17 (2) 13
Other costs (9) (5) (38) (52)
Exceptional items - - - -
----- ------ ----- ------
Total operating costs (78) (907) (96) (1,081)
----- ------ ----- ------
Operating profit/(loss) 35 326 (89) 272
Share of profit before tax of 5 (1) - 4
associates and joint ventures
Other net interest (22) - (37) (59)
----- ------ ----- ------
Profit/(loss) on ordinary 18 325 (126) 217
activities before taxation
Taxation on profit on ordinary 19 (102) 46 (37)
activities
Windfall tax - exceptional item - - - -
----- ------ ----- ------
Profit/(loss) after taxation 37 223 (80) 180
Minority interests - - - -
----- ------ ----- ------
Profit/(loss) for the period 37 223 (80) 180
===== ====== ===== ======
Half year - 1997/98
(pounds m)
Sales of electricity - 98 921 - 1,019
wholesale
Sales of electricity - retail, - 204 - 204
cogeneration and renewables
Divestment income - 191 - 191
Gas sales - 13 - 13
Miscellaneous income 15 9 7 31
----- ------ ----- -----
Turnover 113 1,338 7 1,458
----- ------ ----- -----
Fuel consumed for power station (24) (365) - (389)
generation
Cost of sales - retail, - (193) - (193)
cogeneration and renewables
Cost of divested fuel sales - (101) - (101)
Gas purchased for resale - (10) - (10)
Other direct costs (1) (2) - (3)
----- ------ ----- -----
Total direct costs (25) (671) - (696)
Depreciation (17) (110) (27) (154)
Staff costs (12) (38) (31) (81)
Power station and property costs (7) (162) - (169)
Provisions (1) (42) 10 (33)
Other costs (3) (3) (41) (47)
Exceptional item - - 11 11
----- ------ ----- ------
Total operating costs (65) (1,026) (78) (1,169)
Operating profit/(loss) before
exceptional items 48 312 (82) 278
Exceptional item - - 11 11
Operating profit/(loss) 48 312 (71) 289
Share of profit before tax of 37 - - 37
associates and joint ventures
Other net interest (23) - (32) (55)
----- ------ ----- ------
Profit/(loss) on ordinary 62 312 (103) 271
activities before taxation
Taxation on profit on ordinary 9 (90) 33 (48)
activities
Windfall tax - exceptional item - - (266) (266)
----- ------ ----- ------
Profit/(loss) after taxation 71 222 (336) (43)
Minority interests (4) - - (4)
----- ------ ----- ------
Profit/(loss) for the period 67 222 (336) (47)
===== ====== ===== ======
4. Exceptional Items The exceptional item in the corporate figures of 11 million pounds is the profit on disposal of the Group's interest in Southern Electric plc. An exceptional charge of 266 million pounds was made last year for the Windfall Tax windfall tax Noun a tax levied on profits made from the privatization of public utilities payable in equal instalments, in December 1997 and December 1998.
Half Half
year year Year
5. Dividends 1998/99 1997/98 1997/98
(pounds m)
Per ordinary share:
Interim dividend of 9.6p (1997: 9.0p) 119 109 109
Final dividend of 18.0p - - 220
---- ---- ----
Ordinary dividends 119 109 329
==== ==== ====
The final dividend was paid on 18 August 1998. The interim dividend will be paid on 6 April 1999 to shareholders on the register on 11 December 1998. The shares will go ex-dividend Ex-Dividend The trading of shares when a declared dividend belongs to the seller rather than the buyer. Notes: A stock trades ex-dividend on or after the ex-dividend date (ex-date). on 7 December 1998. 6. Earnings per share Earnings per share before exceptional items is based on profit after taxation and after minority interests but before exceptional items of 180 million pounds (1997:208 million pounds) attributable to ordinary shareholders divided by the weighted average of 1,226 million (1997: 1,215 million) ordinary shares in issue for the six months ended 30 September 1998. The comparative figures for earnings per share after exceptional items is based on a loss after taxation of 47 million pounds. On a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, weighted average number of shares was 1,230 million (1997: 1,222 million). 7. Reconciliation of operating profit to net cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. from operating activities Half Half year year Year 1998/99 1997/98 1997/98 pounds m pounds m pounds m Operating profit 272 289 783 Tangible fixed asset depreciation 200 152 309 charged to profit and loss Other non-cash fixed asset movements 9 10 23 Other fixed asset investments 8 1 9 amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. Profit on disposal of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → (9) (4) (13) Movement in working capital: Decrease/(increase) in stocks 38 (48) 14 Increase in debtors (16) (106) (45) Decrease in creditors (72) (159) (246) Provisions utilised (7) (12) (22) Provisions charged/(credited) to (1) 34 7 profit and loss Exceptional item: sale of shares in - (11) - Southern Electric plc ----- ----- ----- Net cash inflow from operating 422 146 819 activities ===== ===== ===== 8. Additional information for US shareholders Half Half year year Year 1998/99 1997/98 1997/98 $m $m $m International business 63 108 218 UK business 379 356 1,107 Corporate costs, development (136) (130) (336) and interest ----- ----- ----- Profit after taxation and minority interests but before exceptional 306 334 988 items Earnings per share US$0.25 US$0.27 US$0.81 Underlying dividend per share US$0.16 US$0.14 US$0.45 Underlying dividend per ADR ADR - Astra Digital Radio US$0.64 US$0.57 US$1.80 The above represent UK GAAP UK GAAP United Kingdom Generally Accepted Accounting Principles sterling figures which have been translated into US dollars at the following rates 1.6981 1.6058 1.6740 REVIEW REPORT BY KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen AUDIT PLC TO NATIONAL POWER PLC We have reviewed the interim financial information for the six months ended 30 September 1998 set out above which is the responsibility of, and has been approved by, the Directors. Our responsibility is to report on the results of our review. Our review was carried out having regard to the Bulletin, "Review of Interim Financial Information", issued by the Auditing Practices Board. This review consisted principally of applying analytical procedures Analytical Procedures is one of financial audit skill which help an auditor understand the client's business and changes in the business, to identify potential risk areas and to plan other audit procedures. to the underlying financial data assessing whether accounting policies have been consistently applied, and making enquiries of Group management responsible for financial and accounting matters. The review was substantially less in scope than an audit performed in accordance with Auditing Standards and accordingly we do not express an audit opinion on the interim financial information. On the basis of our review: - in our opinion the interim financial information has been prepared using accounting policies consistent with those adopted by National Power PLC in its financial statements for the year ended 31 March 1998 other than where changes are necessary to implement the new accounting standard and policy as described in note 1. - we are not aware of any material modifications that should be made to the interim financial information as presented. KPMG Audit Plc London Chartered Accountants char·tered accountant n. Chiefly British Abbr. CA A member of one of the institutes of accountants granted a royal charter. 24 November 1998 |
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