energy news

Huge Proffits from National Grid


9th December, 2009

The National Grid posted a 16.3% rise in its underlying pre-tax profit for the six months to the end of September. This is good news for the company, which will be pleased that its profits are in line with expectations for the year.

The rise in pre-tax profits came despite a large fall in energy use over the past year. Across the country, the demand for home and business electricity dropped by about 6.5% compared to the previous year, and demand for gas also fell. This was mostly in response to the huge rises in energy bills over the period.

The pre-tax profit came in at £649 million for the six months up to September, which compares to £558 million for the same period last year. Net profit was also up 64.5% to £696 million, compared to just £423 million last year. This also means that the company is on track to deliver on its £3.4 billion investment programme.

The National Grid also announced that its borrowing costs were low for the first half of the fiscal year. The fall in interest rates has also helped the company because a third of its total debt of £22 billion is at floating rates.

However, despite the good figures, the company's total revenue went down from £6.07 billion last year to £6.04, a drop of £28 million.

According to the company, the overall positive results are evidence of its low-risk business model. Steve Holliday, the chief executive, said in a statement that the company had "made good operational and financial progress against our priorities for this year."



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