National Grid profits fall as US turnover stumbles

National Grid reported a drop in interim profits on Thursday, after a decline in US revenue, although the company remained confident of continued outperformance from its UK business.

The energy transmission and distribution firm booked a statutory profit before tax of £404m for the six month period ended 30 September - a drop of 23% compared to the same period last year, after revenue edged 1% lower to £6.29bn.

National Grid proposed an interim dividend of 16.57p per share, 3% higher than last year's.

That slight reduction in turnover was driven by a 4% drop in sales from the FTSE 100-listed company's US operations to £3.89bn, leading operating profit from the other side of the Atlantic to fall by 41% to £259m.

UK revenue climbed 5% to £2.40bn, with a strong performance from the UK electricity transmission segment driving operating profit up by 9% to £829m.

Capital investment, including £209m relating to its acquisition of renewables specialist Geronimo, increased 28% to £2.72bn due to costs related to the development and maintenance of gas and electricity infrastructure.

The company said it expected a good full year performance from its US business following the agreement of a number of regulatory filings, while its operations in the UK business remained on track to deliver continued outperformance.

Meanwhile, National Grid also announced plans to target net zero emissions by 2050, which it claimed would be supported by offers of energy efficiency programmes for its US customers, renewable natural gas proposals and hydrogen-blending programmes.

Chief executive John Pettigrew said the company had made good progress on its strategic priorities and will now focus on develop its objectives across the group, including addressing gas supply constraints currently being faced in downstate New York.

National Grid shares were up by 0.24% at 893.80p at 0805 GMT.