National Grid plans dividend increase with trading strong in quarter three
NATIONAL Grid, Britain’s biggest energy distributor, said the outlook for the year remained positive after a strong operational performance in the third quarter, as it announced plans to increase dividend.
“Under our new one year dividend policy, we plan to deliver nominal dividend growth of four per cent for the 2012-13 financial year, which represents real growth in the dividend based on forecast inflation of around three per cent,” chief executive Steve Holliday said.
“We expect to announce a longer term policy in 2013 once we have clarity on the key regulatory outcomes and the resulting medium term growth and investment needs.”
The Grid has already submitted its business plan to Ofgem for the five-year regulatory period, it said.
The 2011-12 financial year is the last year of National Grid’s current dividend policy, in place since January 2008, and it plans to pay a dividend of 39.28p for the year.
The gas and electricity transmission company said it still expected to invest £3.2bn to £3.3bn this year, and added its US restructuring programme remained on track to deliver savings.
The utility company also announced the appointment of Dr Paul Golby as a non-executive director of the group. Golby’s most recent role was as chairman of E.ON UK.
Shares closed up three per cent at 632p yesterday.