19th May 2016 06:34
LONDON (Alliance News) - National Grid PLC on Thursday said its pretax profit rose by 16% in its recently completed financial year, as the FTSE 100 company posted results that beat market expectations and confirmed its dividend has increased in line with its policy.
The gas and electric utility firm said its pretax profit rose to GBP3.03 billion in the financial year ended in March from the GBP2.62 billion reported a year earlier, whilst pretax profit before exceptional items rose by 9.0% to GBP3.14 billion from GBP2.87 billion.
The adjusted pretax profit came in ahead of analyst forecasts of GBP3.07 billion.
Earnings and profit rose in the year despite National Grid posting a slip in revenue to GBP15.11 billion from GBP15.20 billion, showing its operating margin significantly improved in the year.
Adjusted earnings before interest and tax rose to GBP4.09 billion from GBP3.83 billion. Once exceptional items are taken into account, that Ebit increased to GBP4.08 billion from GBP3.78 billion.
Analysts were expecting adjusted Ebit of GBP4.07 billion.
Exceptional items in the year totalled GBP110.0 million, falling from GBP248.0 million last year.
As expected, National Grid increased its dividend for the year in line with inflation, increasing it by 1.1% to 43.34 pence from the 42.87 pence paid last year.
"In 2015/16, alongside the strong performance, we also made good progress with important rate filings in the US, and the start of a process to sell a majority interest in the UK Gas Distribution business, which is expected to complete in early 2017," said Chief Executive John Pettigrew.
"We are well positioned to deliver asset growth in 2016/17 and beyond. We will continue to enhance efficiency across the Group to deliver an outstanding and affordable service to our customers. At the same time, National Grid will continue to adapt to the new trends in the energy sector, to ensure we keep delivering value for shareholders," he added.
National Grid said it expects it performance to remain broadly flat this year, stating earnings from its growing US business will be "maintained" but said its performance in "other activities" will not be as good due to lower auction revenues in the French interconnector and domestic metering business.
"Overall group performance [in the current year] is expected to remain in line with the group's expectations," the company said.
By Joshua Warner; [email protected]; @JoshAlliance
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