National Grid sees dip in operating profit

30/09/2004 07:49

LONDON (Reuters) - National Grid Transco says it is trading in line with expectations, although operating profits are set to fall from last year’s level.

Britain’s main gas and power network operator said on Thursday money spent on replacing UK gas mains, and the effects of a weak U.S. dollar, would affect operating profits.

"Hence overall group operating profit (excluding exceptional items and goodwill amortisation) will be marginally lower than the same period last year," National Grid said in a statement ahead of interim results in November.

In August, National Grid agreed to sell half its gas distribution assets for 5.8 billion pounds, raising money to return to shareholders and invest in growing U.S. markets. The sale is expected to complete in April.

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said it would return 2 billion pounds to shareholders, and set a more generous dividend policy.

National Grid shares closed at 467 pence on Wednesday. The stock has gained around 19 percent in value since the start of 2004 and has outperformed the FTSE 100 <.FTSE> by about 13 percent in that period.

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