Utility company National Grid Plc (NGG, NG.L) Monday said that it continues to trade in line with its expectations of delivering a strong performance in fiscal 2010 across its businesses.
The company also said that it expects a substantial improvement in profitability in its Electricity Distribution and Generation business and continued good momentum in its Transmission business.
According to the company, its GBP 3.4 billion investment programme for the current year remains on target. The majority of this year's GBP 2.5 billion funding requirement has already been raised, with funding for around a further GBP 400 million required in the current year.
The company expects its effective interest rate to continue to fall in the current year. On July 20, Moody's reaffirmed its credit ratings for the company and changed its outlook from negative to stable, National Grid noted.
The company also said that its strong performance will continue to underpin its 8% dividend growth policy through to March 2012.
Further, National Grid said that it continues to work with regulators and policy makers to deliver improved regulatory frameworks. The company also welcomed the recent UK Low Carbon Transition Plan White Paper, saying it is looking forward to working with all parties to reduce UK carbon emissions by a third by 2020.
Additionally, National Grid said that it has made further progress with its rate case filings in the US. The company's NiMo gas rate case, recommended by New York Public Service Commission staff, was approved in full on May 14 with a base return on equity of 10.2%. The company's New Hampshire gas rate case was approved on May 29.
According to the company, it was disappointed with the allowed return on equity of 9.54% in the New Hampshire gas rate case. On June 29, the company has submitted a request to the New Hampshire Public Utilities Commission for them to reconsider the decision.
National Grid also said that it has filed electric rate cases in Massachusetts and Rhode Island on May 15 and June 1, respectively. The company expects a conclusion to be reached around the end of the year in Massachusetts and early next year in Rhode Island.
The company's Rhode Island gas rate case was approved last year with a return on equity of 10.5%.
NGG closed Friday's trading at $46.85, down $0.65, on a volume of 105,800 shares.
NG.L is trading at 569.50 pence on the LSE, down 5 pence, on a volume of 857,226 shares.
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