Utility giant boosts profits in “important year”

Utility giant National Grid increased its profitability in “an important year” for the Warwick-headquartered company.

Its adjusted pre-tax profits rose 13% to £3.56bn while it also returned £4bn to shareholders after the sale of a 61% stake in its UK Gas Distribution business.

National Grid is by far the region’s most valuable public company. Its market value of £40bn is seven times greater than the second biggest in the West Midlands, Severn Trent.

John Pettigrew, chief executive of National Grid, 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. Our focus on efficiency has also generated £460m of savings for customers in the first half of the 8 year RIIO framework.

“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.

Pettigrew added: “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.”