National Grid confident of growth
MIDLAND utility National Grid has said it remains confident of delivering full year growth in addition to pressing ahead with major UK investment.
The power provider, which has revealed a 14% rise in pre-tax profits to £2.92bn (2012: £2.56bn), said its priorities for the year were to deliver the group’s investment programme to create maximum value and to drive performance against the new UK regulatory framework.
Full year revenue in the year to March 31, 2013 was £14.4bn (2012: £13.8bn).
In the United States, it said it planned to build on new rate plans and implement new processes to improve customer service and efficiencies in operations.
“Over the past two years, National Grid’s strategic priorities focused on delivering a step-change in US performance and agreeing a number of important regulatory arrangements in both the UK and US,” it said in its full year statement.
“Following the successful completion of these goals, the group will increasingly focus on maximising incentive driven performance by focusing on outputs and customer needs while delivering the significant growth opportunities set out under these new arrangements.
“Overall, the board expects the company to deliver another year of good operating performance and dividend growth.”
Steve Holliday, National Grid Chief Executive, said the year had seen the successful conclusion of several major strategic priorities.
“During the year we secured significant regulatory outcomes, covering over 80% of our asset base, creating much greater clarity for our businesses. At the same time, we delivered a record operating profit and robust cash flow performance despite another year of significant storms in the US. As a result, we have built a strong platform from which to deliver organic growth and support our new dividend policy,” he said.
During the year, the group agreed new eight-year UK price controls covering nearly £24bn of regulated assets, finalised four US rate cases with two others settled, pending approval, pledged capital investment of £3.7bn, which contributed to £2.7bn growth in regulated assets.
“In the UK, we are positioned to make a strong start to the new eight- year regulatory regime. We are focused on meeting our regulatory commitments by operating efficiently and investing in essential infrastructure, while delivering high standards of customer service, driving good returns for shareholders,” added Holliday.
“In the US, we are focused on securing the benefits of our recent rate agreements and investment in new systems while delivering enhanced customer service and network growth which will help us to build on our significant progress to date.
Overall, we expect to deliver another year of good operating performance and dividend.” growth.”
