National Grid PLC (LON:NG.) reported a fall in profits for the first half of the year, but said it was making “good progress” on strategic priorities on both sides of the Atlantic, including upping its emissions reduction target to net zero by 2050.
Underlying profit before tax for the FTSE 100 electricity and gas transmission network fell 4% to £785mln.
READ: Ofgem strikes £80mln from National Grid funding for Hinkley Point
Statutory PBT slid 23% to £404mln but the interim dividend was lifted 3% to 16.57p per share, in line with RPI inflation.
Capital investment, including the £0.2bn acquisition of Geronimo in the US, increased by £592mln or 28% to £2.7bn.
Chief executive John Pettigrew felt it was a “solid financial performance”, with “organic growth” at the top end of the 5%-7% range.
On strategic developments, he highlighted the agreement of a multi-year forward rate case in Massachusetts Electric, the submission of a draft business plans for the next UK regulatory period and the Geronimo deal.
Last month, UK energy regulator Ofgem cut £80mln in funding from National Grid’s works to connect new Hinkley Point C nuclear reactor to the grid, which the company said it “welcomed”, with the “on target” to be ready for connection in 2025.
“In the second half, we are progressing our priorities across the group including addressing the gas supply constraint in downstate New York,” Pettigrew said.
Thursday saw the group announce that it is increasing its own emissions reduction target from 80% to net zero by 2050, “supported by work in other areas, such as offering further energy efficiency programmes for our US customers, proposals for renewable natural gas and hydrogen blending programmes”.
Looking ahead, the company said it expected to deliver asset growth of around 7% in the near term with annual capital investment of around £5bn.