Boston, MA 05/20/2014 (wallstreetpr) – National Grid plc (ADR) (NYSE:NGG) reported its results for the fiscal 2014 ended March 31, 2014 with solid financial performance across the UK and the U.S. operations.
Operational efficiency
During the fiscal 2014 (FY2014), the consolidated revenues were £14.8 billion compared to £14.4 billion in the past year (FY2013). The improvement was due to increasing revenues from the UK Electricity transmission, UK Gas distribution and the US regulated business that offset the declining revenue from the UK transmission business.
Factors like higher UK revenues, lower US storm costs and year on year timing recovery of £59 million increased the overall operating profit by 2% (at constant currency) to £3.7 billion. As a result, adjusted earnings during FY2014 were £2 billion or 54.0p per share, up by 5% compared to FY2013.
Financial position
Adjusted operating cash flow during FY2014 was £4.6 billion due to a change in working as a result of major storms, weather impacts and volatility in commodity price in the U.S. National Grid plc (ADR) (NYSE:NGG) reported lower capital expenditure compared to last year that improved the overall free cash flow. But, the Group delivered strong results in transmission and distribution in the UK and the U.S. with a total investment of £3.4 billion.
But, higher debt repayments (£2.2 billion) and dividend distributions (£1 billion) compressed the net cash to £339 million. As a result, net debt as of March 31, 2014 was £21.2 billion (2013: £21.4bn). The Group has strong balance sheet with regulated financial position that includes total assets of £52.4 billion and shareholder’s equity of £11.9 billion. The Group’s return on equity was 11.4% compared to 11.7% in FY2013.
Business outlook
National Grid plc (ADR) (NYSE:NGG) continues to focus on additional opportunities including transmission projects, interconnection and other regulated investments. The investments will further enhance the business efficiency across the UK and the U.S. while providing organic growth and creating value for customers as well as shareholders.
