Boston, MA 05/16/2014 (wallstreetpr) – International utility company National Grid Plc (ADR) (NYSE:NGG) experienced good business in the year ended March 31. The company noted profit improvement as a combination of favorable factors dominated the trading period. The company expects to look into new opportunities to support performance going forward.
The just reported financial results gained support from higher energy rates and cost-cutting efforts that included layoffs.
The company intends to cut energy supply to its domestic customers in efforts to reduce outages ahead of winter. The company has plans to offer incentives on power bills for customers who agree to its supply cuts. The supply cuts would be observed between 4pm and 8pm and should lead to 850-megawatt saving on electricity during weekdays.
In the move to prevail on businesses to allow a reduction in their supply hours, National Grid Plc (ADR) (NYSE:NGG) has the backing of the regular. The incentives offered to businesses that sign up for the supply cuts would be passed down to consumers.
Overall performance encouraging
National Grid Plc (ADR) (NYSE:NGG) reported total operating profit of $6.1 billion for the ended March 31. The latest profit figure indicates 1 percent increase over the profit in the previous year. About $1.9 billion of the profit in the latest year was generated from operations in the U.S. especially the utilities in New England and New York.
The U.S. operating profits were supported by about 32 percent increase in energy rates following the approval of the regulator.
However, the overall gains were attributed to continued cost reduction efforts in the company. The company trimmed jobs and undertook more aggressive cost-saving measures in the year.
Way forward
Following a strong year, National Grid Plc (ADR) (NYSE:NGG) looks to boosting its capacity while maintaining a curb on costs and expenses. The company intends to look into strategic asset acquisitions as it unlocks value in certain locations.
Shares of National Grid Plc (ADR) (NYSE:NGG) are up 4.25 percent over the past one month and 10.72 percent year-to-date.
