First-half profits of National Grid increased by 16%
December 2009
The first half profits of National Grid, the operator of Britain’s high-voltage electricity transmission and gas distribution networks, have been reported to be increased by 16 per cent and this trend is expected to be continued. The company, which has borrowings of £22 billion, said it was fully-funded for the year and was on track to deliver its investment programme of £3.4 billion.
Steve Holliday agreed that recession had led to lower demand for energy from consumers and industrial users and had “marginally affected their distribution businesses, especially in the US,” but said that changes in energy supply from renewable sources and new nuclear power stations “creates a number of organic growth opportunities” for the company.
Analysts expect National Grid to report full-year pre-tax profits of £2.1 billion, up from £1.8 billion last year. For the six months to September 30, it reported pre-tax profits of £649 million, up from £558 million last year, and increased the interim dividend by 8 per cent to 13.65p from 12.64p.
In the past one year, shares in the company have fallen 7 per cent underperforming the FTSE all share index by 32 per cent.
Michelle Williams from Artemis Solutions Group who specialise in recruiting for the Utility sector comments “The first half profit of National Grid show an increase of 16 percent in spite of recession and low demand. The good news is that this increasing profit is expected to continue”.
