National Grid to hike dividend as profits surge
NATIONAL Grid yesterday reported a five per cent increase in full-year profits, in line with estimates, and said it was positive on its outlook for next year.
Pre-tax profits in the year to the end of March rose five per cent to £2.59bn, in line with analysts’ estimates, Britain’s biggest power supplier said.
National Grid increased its full-year dividend by eight per cent to 39.28 pence, in line with its policy.
The company said in a statement: “The restructuring of our US business is now complete and is delivering operational and financial benefits to underpin our progress on further improving US returns.
“Our existing price controls in the UK continue to deliver attractive returns and we are working to ensure that this can continue,” the gas and electricity transmission company added.
It said that net debt levels had jumped by £1bn to £19.6bn.
National Grid, which currently plans to increase its 2012-13 dividend by four per cent, expects to announce a new dividend policy for the period from April 2013 during the course of the next year. National Grid is in the throes of modernising its infrastructure to make it more eco-friendly.
Chief executive Steve Holliday said: “On the back of a solid all round performance in 2011-12, and reflecting the revenue growth that our regulatory arrangements provide, we maintain a positive outlook for 2012-13, and expect to deliver another year of good operating and financial performance.” The company also revealed that it had taken a £116m hit from bad weather hitting its US business.