National Grid H1 Pre-tax Profit Up Despite Lower Revenues

(RTTNews) - Electricity and gas utility National Grid Plc. (NG.L, NGG) Friday reported a rise in pre-tax profit for the first half, reflecting lower operating costs, despite decline in revenue. The firm said its overall performance for the full year is in line with its expectations.

Steve Holliday, chief executive of the company said, "After the first six months of 2014/15 National Grid remains on track to deliver another year of strong overall returns and asset growth."

For the first half, the company's pre-tax profit increased to 1.18 billion pounds from 1.05 billion pounds in the previous year. On an adjusted basis, pre tax profit was 1.14 billion pounds, up from 979 million pounds in the year-ago period.

Profit attributable to equity shareholders of the parent decreased to 908 million pounds or 24.0 pence per share from 1.24 billion pounds or 32.8 pence per share a year ago.

Adjusted earnings per share were 23.3 pence, while the firm posted 20.1 pence last year.

Revenue for the six month period declined to 6.36 billion pounds from 6.72 billion pounds in the previous year.

Operating costs fell to 4.73 billion pounds from 5.19 billion pounds last year.

The board has also approved an interim dividend of 14.71 pence per share or $1.1718 per American Depositary Share. The interim dividend is expected to be paid on January 7, 2015, to shareholders of record on November 21, 2014.

Looking ahead, the firm said capital expenditure of 3.1 billion pounds to 3.3 billion pounds is expected to drive regulated asset growth of around 5 percent this year.

Holliday added, "Our UK businesses continue to deliver strong performance within their clear, long-term, regulatory arrangements. We expect to deliver overall improvements in both totex and revenue incentive outcomes this year compared to 2013/14. In the US, the outlook for additional asset growth is increasingly positive..."

The Group announced a joint venture with Berkeley Group to develop a number of its sites in London and the surrounding area. NG.L is currently trading at 921.50, up 0.49 percent.