National Grid profit rises in US

UK utility National Grid has reported a 4% rise in half-year profit and gave a positive forecast for future results.

The firm said its operating profit in the six months to the end of September increased to £1.08bn ($1.63bn), in line with analysts' expectations.

National Grid boss Steve Holliday said it was "on track" to deliver full-year profits in line with expectations.

The firm's profits were boosted by acquisitions in the US, where it has large electricity and gas businesses.

Profiting on gas

National Grid is the largest distributor of natural gas in the north-eastern US, serving 3.4 million customers in New York, Massachusetts, New Hampshire and Rhode Island.

It said its gas distribution business's operating profit rose by 65% to £274m.

The size of the business almost doubled after National Grid bought US gas distributor Keyspan for $7.3bn in a deal finalised last year.

National Grid also delivers electricity to millions of customers in New York and New England.

It manages the electricity network on Long Island under an agreement with the Long Island Power Authority.

It says it remains the largest investor-owned power producer in New York.

National Grid's pre-tax profit on continuing operations, however, dropped 26% to £558m.

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