National Grid, the operator of the UKÔÇÖs power and gas networks, has reported a 12 per cent rise in annual profits to ┬ú2.2 billion.
The company has also said it plans to raise £3.2 billion pounds in a rights issue to boost its credit rating and fund increased investment, which it has said will be in the region of £22 billion over the next five years.
The rights issue will allow the firm to fund capital investment, maintain single A credit ratings for its UK operating companies and strengthen its long-term competitive position.
Profits at National Grid rose following strong results from its transmission and electricity distribution and generation businesses.
Commenting on the results, Steve Holliday, chief executive, said: ÔÇ£I am particularly pleased with our reliability performance in the UK and US. We are delivering improvements in customer satisfaction in all of our businesses. We continue to make progress in our priority areas: ensuring appropriate regulatory arrangements, delivering investments and making further efficiencies.ÔÇØ
He continued: ÔÇ£These excellent results clearly demonstrate that National GridÔÇÖs strategy continues to deliver. Our performance in the first weeks of 2010/11 is encouraging and we are confident that this will be another year of growth. We believe that the rights issue announced today will give us the scope and appropriate financial flexibility to deliver the GroupÔÇÖs strategy.ÔÇØ
National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across the UK. It also owns and operates the high pressure gas transmission system in Britain. Its distribution business delivers gas to 11 million homes and businesses.
The company also delivers electricity to approximately 3.3 million customers in the US, in Massachusetts, New Hampshire, New York and Rhode Island. It manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA).
National Grid is the largest distributor of natural gas in the north-eastern US, serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island.
The company is also involved with a number of related businesses such as liquefied natural gas (LNG) importation and storage, land remediation and metering.
Headquartered in London, UK, the company employs around 28,000 people.
