National Grid plc Plans 6% Annual Asset Growth

Published in Company Comment on 29 July 2013

National Grid plc (LON: NG) says it should invest up to £3.9bn during the year to May 2014.

The shares of National Grid (LSE: NG) (NYSE: NGG.US) gained 10p to 771p during early trade this morning after the FTSE 100 member confirmed plans to increase its regulated assets by 6% per annum during the next few years.

National Grid, which operates the country's electricity transmission system, said today that its capital expenditure during the twelve months to May 2014 would continue to be in the region of £3.6bn to £3.9bn.

The blue chip stated that capital investment within its UK operations was expected to match the amounts spent during 2012/13. Current projects include installing new cables in various London tunnels and planning a high-voltage direct current link in Scotland.

National Grid added that its investment in the States would continue at around £1.3bn to £1.4bn a year.

Steve Holliday, National Grid's chief executive, said:

"Our businesses have started the year well."

"As a result, we are maintaining our outlook for 2013/14, reflecting the expected delivery of another year of solid operating and financial performance."

Prior to today, City experts were predicting National Grid would deliver earnings of 53p per share and pay a dividend of 42p per share.

Those projections place the shares on a possible P/E of 14 and a potential yield of 5.5%.

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> Maynard does not own any share mentioned in this article.

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