National Grid upbeat after mixed quarter
THE COUNTRY’S biggest utility firm National Grid yesterday said it was positive on the outlook for the year and posted a 1.3 per cent rise in electricity transported in the first quarter.
But the UK’s power transmission operator said gas volumes were down by 4.6 per cent in the first three months of the year, discounting the effects of the cold weather on gas use, which the firm blamed on the downturn and a new customer focus on energy efficiency.
Analysts currently expect the group to report pre-tax profit for this year of £2.2bn, up from £1.97bn last year.
“We are well positioned to deliver another year of good performance, which will underpin our targeted eight per cent dividend growth policy to 2012,” said chief executive Steve Holliday. The firm also announced the success of its £3.9bn rights issue, which raised half a million pounds more than first planned.
“Our rights issue will enable the group to fund a significant increase in UK capital investment whilst delivering attractive returns to shareholders,” said Holliday.
Repairs to the gas distribution network are on course, according to the firm, with 501km of mains replacement completed in the quarter. It aims to complete more than 2,000km of repair work this year.
In the US branch of the business, the gas division won 7,700 new customers in the quarter to aid on-target annual growth of around $50m (£32.3m).
The firm plans to sell off its New Hampshire energy businesses, which the company said “do not enable us to meet long term customer needs and earn acceptable returns”.
Shares in National Grid dipped following the announcement, but closed 1.3 per cent up at 509p.