Electricity and gas firm National Grid has set out a new one-year dividend policy starting next year, in which it promises to deliver nominal dividend growth of 4%.
"We expect to announce a longer term policy in 2013 once we have clarity on the key regulatory outcomes and the resulting medium term growth and investment needs," said Chief Executive Steve Holliday.
Meanwhile, the firm said that it saw a continued solid operating and financial performance in the period between October and January (fiscal third quarter) and reconfirmed its positive outlook for the full-year. Investment for the full-year is still expected to be in the range of £3.2-3.3bn.
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The US restructuring programme remains on track to deliver the targeted annualised cost savings of $200m by the end of the financial year.
"Our businesses continue to make good progress toward their priorities for the year and have delivered further solid operational and financial performance," Holliday said.
In December, the firm announced that an electricity contract with the Long Island Power Authority (LIPA) would not be extended beyond the expiry date of December 31st 2013. As a result of the non-renewal of the LIPA management contract, a non-cash charge of $100m will be made to exceptional items in respect of intangible assets relating to that contract.
In a separate statement, National Grid welcomed Paul Golby to the board as a non-executive directory. Golby is the Chief Executive and Chairman of utilities firm E.ON under late last year.
BC
