Steve Holliday, Chief Executive, said: "National Grid delivered another successful year. Overall, our businesses achieved a strong operating performance and we developed new strategic growth opportunities in transmission and interconnection. We invested around £3.5bn in essential infrastructure during another year of strong network reliability, safety and resilience. Effective regulation continues to drive efficient investment. In the UK, for example, savings generated in the first two years of the RIIO price controls will reduce future customer bills by around £200m."
Good operational and strategic progress led by efficiencies and investment
UK regulated: Ongoing benefit from 2013 restructuring, improved efficiency and incentive performance
RIIO incentive performance contributed 270bp (2013/14: 180bp) to UK Return on Equity with pre-determined additional allowances contributing a further 90bp (2013/14: 80bp)
Capital investment of £1.8bn with regulated asset value up 2% to £25.4bn.
US regulated: Profits maintained, supported by additional revenues from existing rate plans
Return on Equity 8.4% (2013: 9.0%) reflecting increased rate base and additional winter costs
Record capital investment of $2.4bn; $0.9bn total (7% underlying) growth in rate base to $17.2bn
Completed financial systems upgrade and now preparing for important rate filings in 2015/16
New business activities: Good strategic progress with new investments approved
€1.4bn planned investments approved for Norway and Belgium interconnector projects
London property joint venture agreed; first site transfer expected during 2015/16
Continued progress developing multiple US transmission investment opportunities
Strong overall financial performance maintaining robust financial position
Group Return on Equity 11.8% (2013/14: 11.4%); Value Added of £1.7bn or 44.7p per share
Adj. operating profit, excl. timing, up 5% to £3,927m (2013/14: £3,731m) at constant currency
Adj. EPS, excl. timing, up 10% to 59.6p (2013/14: 54.4p)
Strong balance sheet and cash flows; sustained financial metrics consistent with A- credit rating
Recommended final dividend of 28.16p/share (2013/14: 27.54p); full year dividend up 2.0% to 42.87p (2013/14: 42.03p), in line with inflation and policy
