National Grid full-year pre-tax profit up 15%

Electricity and gas network operator National Grid posted a jump in pre-tax profit for the year to the end of March, with a particularly strong performance at the interconnectors business.

Pre-tax profit rose 15% from the same period in 2015 to £3.03bn. Adjusted earnings per share were up 10% to 63.5p, while adjusted operating profit increased 6% to £4.1bn and the company recommended a full year dividend of 43.34p compared with 42.87p the previous year.

The company said its growing portfolio of "other" activities delivered a strong year, particularly the interconnectors business, which benefited from increased auction revenues.

"Other" activities contributed £183m more to operating profit than last year at constant currency, led by increased revenues in the French interconnector business due in part to higher price arbitrage between the UK and mainland Europe.

Chief executive John Pettigrew said: “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.

“The needs of our customers remain at the centre of our business, demonstrated by the significant investment in critical infrastructure in the UK and the US, and over £330 million of savings generated for customers in the UK in the last three years.”

In terms of the outlook, the company said it expects to maintain performance broadly at last year’s level in the UK.

In the US, returns will likely be maintained, ahead of rate revisions in Massachusetts and New York, which are expected to come into effect in late 2016 and early 2017.

National Grid said it does does not expect to repeat the level of performance seen in its "other" activities in 2015/16.

Overall, the performance is expected to remain in line with the group's expectations.