Grid gains bring dividend pledge
NATIONAL Grid Transco is cranking up its dividend by 15% this year and promising to push up the dividend by 7% each year until 2008.
The good news from the privatised nationwide electricity pylons and gas pipes giant came on the back of underlying pre-tax profits of £405 million for the six months to the end of September, growth of 19% year-on-year.
Chairman Sir John Parker said the results were a vindication of the cost-savings available from the merger of the Grid's electricity business with the Transco gas distribution business, formerly part of the old British Gas empire.
The results also represented a better performance from its US electricity business, Niagara Mohawk, he said.
The dividend increase, up 7.91p at the half-year stage, was, he said, a result of 'the confidence in future prospects from our existing businesses'.
The company, £13.5bn in debt, expects to bring in £6bn from next year when it starts to sell off the regional gas distribution businesses inherited from Transco. While it will keep the London gas network, up to five other regions will be put up for sale.
