15th May 2014 08:51
LONDON (Alliance News) - National Grid PLC Thursday said pretax profit increased in its recent full year as new price control systems in the UK and operational improvements in the US led to an increase in revenues, and it announced that its UK Executive Director Nick Winser will be stepping down at its upcoming annual general meeting.
The company, which owns the electricity transmission system in England and Wales, said its pretax profit increased 1.5% to GBP2.75 billion for the twelve months ended March 31 from GBP2.71 billion the year before, as revenues increased 3.1% to GBP14.81 billion from GBP14.36 billion.
The company said its results improved after setting up new price control mechanisms in the UK and consolidating a range of operational improvements in its US operations despite difficult weather conditions during the period.
National Grid added that operating profit at its UK Gas Distribution operations increased 14% to GBP904 million from GBP794 million and operating profit at its UK Electricity Transmission operations increased 4% to GBP1.09 billion from GBP1.05 billion, offsetting falls in its UK Gas Transmission and US Regulated operations.
The company said that it has made a range of savings in its UK operations after a review of structures and processes in 2013, and that around GBP70 million of the total savings generated in the year will now be used to help reduce its consumers' electricity and gas bills from 2015/16.
In January, the company announced that it had made good progress since October 1, 2013 as its networks performed well, demonstrating strong resilience during some difficult weather conditions in both the US and UK.
At the time, National Grid said its outlook remains unchanged from that stated in its half-year results, while it was well positioned to deliver another year of good operating performance and sustainable dividend growth.
It said on Thursday that it sees further opportunity to drive efficiency and operational excellence across the UK and US businesses and expects to deliver healthy returns and good organic growth moving forward in order to support its commitment to sustainable dividend growth.
As such, National Grid recommended a final dividend of 27.54 pence per share, which would bring its full-year dividend to 42.03 pence per share, an increase of 2.9% over its 40.85 pence per share payment the previous year.
On Thursday, the company announced Executive Director Winser will step down from its board after its annual general meeting in July.
The company said Winser will continue with his roles as president of the European Network of Transmission System Operators for Electricity and as chairman of National Grid Electricity Transmission PLC and National Grid Gas PLC, the two principal regulated operating subsidiaries of National Grid in the UK, through to July 2015 before retiring from the company.
National Grid shares were down 0.4% to 857.5 pence during early trading on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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