National Grid earnings fail to spark in first half

Electricity infrastructure operator National Grid posted its half-year report on Thursday, with adjusted earnings per share of 28.2p, flat compared to the same period last year, and operating profit of £1.9bn, up 1% including favourable timing and the effect of foreign exchange.

The FTSE 100 company made capital investment of £2.2bn during the period, up 12% - or 6% at constant currency.

It declared an interim dividend of 15.17p per share, in line with the board’s dividend policy.

National Grid’s board said new rates for Massachusetts Electric allowed a return on equity of 9.9%, and a three year joint proposal was filed for the downstate New York gas businesses.

It also claimed solid operational performance in the UK, generating savings for customers, with the UK Gas Distribution majority sale on track.

“We have delivered good results and made significant progress on key priorities while continuing to deliver a safe and reliable service to our customers in the UK and the US,” said chief executive John Pettigrew.

“First half earnings per share were in line with a strong prior year, with our regulated businesses delivering a solid performance.”

Pettigrew said in the US, the company received a positive outcome for its Massachusetts rate filing and was in the final stages of agreeing updated rates for its downstate New York gas businesses.

“Once agreed, around 40% of our US business will be operating under new agreements which will enable us to improve future returns in the US.”

In the UK, Pettigrew said the proposed sale of its gas distribution business was on track with separation activity in the final stages.

“Looking further out we are focused on evolving National Grid to enable us to play a leading role in shaping the future of energy networks.”