National Grid Sees Trading In Line; Outlook For Year Positive

26th Jul 2010 07:40

LONDON (Dow Jones)--National Grid PLC (NG.LN) said Monday it sees trading in line with expectations and the outlook for the year remains positive. The U.K.-based utility, which owns and operates electricity and natural gas networks in the U.K. and U.S., said in a statement it expected a substantial improvement in its gas distribution business compared to last year's performance. "We are well positioned to deliver another year of good performance, which will underpin our targeted 8% dividend growth policy to 2012," Chief Executive Steve Holliday said. Net debt is expected to fall following the GBP3.2 billion rights issue and the company remains on track to deliver a GBP600 million increase in investment this year to GBP3.9 billion that will primarily be used for transmission. Group capital investment is forecast to reach around GBP22 billion over the next five years, up from GBP14 billion in the previous five-year period. National Grid shares closed 503 pence on Friday. The company's shares have fallen almost 13% since the May 20 rights issue to fund a significant increase in investment in U.K. electricity and gas networks. Company website: http://www.nationalgrid.com -By Selina Williams, Dow Jones Newswires +44 207 842 9262; [email protected] (END) Dow Jones Newswires July 26, 2010 02:40 ET (06:40 GMT)