National Grid sees earnings rising

LONDON (Reuters) - Gas and power network operator National Grid Transco says it expects full-year earnings to rise in line with forecasts, due partly to cost savings.

"The group’s financial performance for the year ended 31 March 2004 has been particularly strong, and we expect that earnings per share (excluding exceptional items and goodwill amortisation) will be substantially ahead of last year and in line with expectations," it said in a statement on Friday.

National Grid reported in November a rise in first-half profits and raised its dividend payout. The company is also planning to sell some of its UK local gas networks.

The company added that, along with the expected rise in EPS, it also hoped to enjoy higher profits.

Advertisement starts

Advertisement ends

"A combination of lower effective interest rates and a weaker U.S. dollar is expected to lead to a reduction in interest costs and contribute to strong growth in profit before tax," National Grid said.

National Grid shares closed at 430 pence on Wednesday. The stock has outperformed the benchmark FTSE 100 index <.FTSE> by about nine percent since the start of 2004 and gained nearly 10 percent in value over that period.

2009 Reuters Click for restrictions