28th Jul 2014 07:10
LONDON (Alliance News) - National Grid PLC Monday said it is on track to meet its targets for the full financial year ending March 31, 2015, benefiting from improvements made to its UK and US businesses.
In an interim management statement for the period April 1 to date, the company said it expects capital expenditure for 2014/15 to be at a similar level to the GBP3.4 billion it invested in 2013/14, which contributed to the 5% growth in regulated assets during the period.
FTSE 100-listed National Grid said some spend in the UK may be held back by delays in the cable manufacturing process for the Western Link, an undersea high-voltage direct current circuit connecting North Wales to Scotland. However, it said at this early stage the delay is not expected to have a significant impact on overall growth.
Nonetheless National Grid said in the UK, it has made strides with its investment programme, "enhancing the overall condition of our assets and improving their environmental and safety characteristics."
The energy network operator said that in the US it is investing, as planned, at a marginally increased level, in line with its updated medium-term guidance of just over GBP2 billion a year. National Grid said investment remains focused on network reliability, including infrastructure replacement and modernisation, and gas distribution infrastructure to connect new customers.
Overall, the company said it expects to grow its regulated assets by around 5% during 2014/15, in line with previous guidance.
The company, which owns high-voltage power cables and gas pipelines, said there has been no material change to its financial position during the period.
In addition, National Grid said interest cover, gearing and other financial metrics remain within comfortable ranges to sustain its strong credit ratings in the medium term and support the policy of growing the dividend at least in line with Retail Prices Index inflation for the foreseeable future.
National Grid shares were quoted down 0.3% at 868.50 pence at the open Monday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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