National Grid Plc’s operating profit jumped 50% in the six months through September boosted by higher revenues from its new UK distribution network assets. The company’s US assets were buoyed by a stronger dollar.
The group’s first-half earnings per share rose to 32.4 pence, with underlying operating profit jumping to £2.1 billion. The results include a full six month of revenues following an acquisition of the largest power distribution company in the UK, as well as a contribution from the sale of a power company in Rhode Island.
The company also plans to increase its spending in the coming years, with plans to spend £40 billion by 2026 on critical infrastructure, up from a previous range of £30 billion to £35 billion.
National Grid has a crucial role in managing the UK’s energy system through the supply crisis, with its electricity interconnectors sending and receiving power from around Europe. A cold winter with gas shortages could trigger demand reductions and even power cuts to businesses and homes across the country, the group’s electricity system operator said last month.
The group also operates assets in the US northeast, giving it revenues supported by a stronger dollar. The utility now faces a higher interest rate environment across the board after years of borrowing cheaply to invest in its swathes of assets.