Year has started well, says National Grid

25th Jul 2011 07:19

Power and gas grid operator National Grid's operational and financial performance since the beginning of April was described as 'solid' by chief executive, Steve Holiday."We reconfirm our positive outlook for 2011/12 - we expect to deliver another year of good operating performance, although, as previously highlighted, comparative financial results will show some impact from the timing differences that benefited 2010/11," Holiday said.The new organisation model announced in January 2011 is now embedded in the group's UK and US operations, with the businesses retaining their focus on implementing new information systems, including the next release of the Gas Distribution Front Office systems in the UK and integration of multiple information system platforms in the US. The US restructuring programme remains on track to deliver targeted annualised cost savings of $200m by the end of the current financial year, the company said. "We have completed the review of our structure and identified an organisational framework that can meet the needs of customers whilst operating with approximately 1,150 fewer positions. This drives a significant portion of the anticipated cost savings," the company said.The group is planning to invest around £3.6bn in its businesses in fiscal 2011/12, the bulk of which is represented by the construction programme in the UK, which the company said is progressing well. In the US, investment continues at a steady level, focused on the improvement and renewal of existing infrastructure, the delivery of improved customer service and the addition of new customers.Regarding the group's preparations for Ofgem's RIIO (Revenue=Incentives+Innovation+Outputs) model, extracts from National Grid's business plans will be published in August, with the group hosting a conference call on 4 August to provide a National Grid context to the plans and to highlight some of the key considerations in the submission.On the financial side, interest cover, gearing and other credit metrics remain within comfortable ranges to sustain appropriate credit ratings in the medium term, the group said. --jh