Profits surge at National Grid after year of record capex

Caitlin Morrison
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Deputy First Minister John Swinney Visits Longannet Power Station
National Grid supplies electricity across the UK (Source: Getty)

National Grid grew profits by 14 per cent in the year to 31 March, with earnings also increasing.

The figures

Operating profit was up 14 per cent to £4.7bn from £4.1bn, while profit before tax went up 13 per cent to £3.6bn from £3.1bn.

Earnings per share rose 16 per cent to 73p from 63.2p.

Shares in the group inched up by 0.25 per cent.

Why it's interesting

National Grid is halfway through an eight year regulated price control (RIIO) framework, and today the company said it had made £460m in savings so far.

The group also said it had made a "significant capital investment of £4.5bn" last year, an annual increase of five per cent on a constant currency basis - and a record, according to the firm.

Meanwhile, National Grid highlighted the fact it had returned £4bn to shareholders after the sale of a 61 per cent stake in its UK gas distribution business to a consortium called the Quad Gas Group.

What National Grid said

Chief executive John Pettigrew said: "Last year was an important year for National Grid. We invested record capex of £4.5bn delivering a safe and reliable service for customers.

"We made significant progress in the year, with the successful completion of the UK gas distribution transaction, a good outcome on the rate filings in the US and a positive conclusion to important regulatory reviews in the UK.

"National Grid is well positioned for the future with a rebalanced, higher-growth portfolio, and we are actively taking steps to evolve the business to meet the changing needs of our customers."

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