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(Sharecast News) - National Grid shares rose on Thursday after the energy infrastructure group reported a sharp increase in first-half profits and upgraded its full-year earnings guidance, supported by higher regulated revenues and record investment in its networks.
The FTSE 100 company said it now expects underlying earnings per share to increase by 15-16% in the year to March 2027, compared with previous guidance of growth slightly above 13-15%.
Revenues rose 15% year-on-year to £8.14bn in the six months to 30 September, helping underlying operating profit increase 13% to £2.59bn and underlying earnings per share rise 22% to 36.5p. Statutory pre-tax profit more than doubled to £1.73bn from £826m.
The strongest growth came from UK Electricity Transmission, where underlying operating profit surged 45% to £1.23bn, reflecting higher allowed revenues under the new RIIO-T3 regulatory price control and increased investment in the network.
Capital investment jumped 33% to £6.71bn from £5.05bn due to accelerated spending on its UK and US networks.
National Grid increased its interim dividend by 4% to 16.97p per share from 16.35p.
Chief executive Zoë Yujnovich said: "Our results for the first half show that capital investment is accelerating - increasing by one-third, our major projects are progressing, and the changes we are making within National Grid are sharpening performance in service of better outcomes for customers and stakeholders."
The company expects capital investment of around £13.5bn for the current financial year, representing growth of more than 15%, with the group targeting investment of at least £70bn over the five years to 2031.
Meanwhile, National Grid maintained its longer-term target for annual underlying earnings per share growth of 8-10% through 2030/31.
The stock was up 2.5% at 1,297p by 0910 GMT.
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