'Solid' performance for National Grid in H1 2019 results

Multinational electrics and gas company National Grid has reported a ‘solid’ financial performance for the first six months of 2019.

This is said to have been underpinned by good operational progress in the UK and US, while the company has supposedly continued to focus on safety campaigns to reduce injury rates.

Capital investment (including the Geronimo acquisition) increased by £592m at actual exchange rates to £2,722m, reflecting investment in developing and maintaining gas and electricity infrastructure for customers.

Underlying operating profit at actual exchange rates increased £16m (one per cent) versus the prior period to £1,301m.

This is said to reflect the impact of new US rate case revenues, lower storm costs partially offset by the non-recurrence of £94m favourable legal settlements in 2018.

National Grid is also said to be making progress on regulatory rate filings, having completed the rate filing for Massachusetts Electric with new rates in effect on October 1.

It has also invested £1.6bn into its US networks - a step-up from £1.2bn in the first six months of 2018. Around 80 per cent of this capital investment is driven by the need to maintain the safety and reliability of its networks.