(Bloomberg) -- National Grid Plc doesn’t expect any major changes to its US business from Trump’s presidency as the firm forges ahead with a £28 billion ($36 billion) investment plan in the country.
Chief Executive Officer John Pettigrew is “looking forward” to working with the new administration, and said most operations wouldn’t be affected as they’re among the regulated assets decided at state level.
The US division contributes about a quarter of overall profit. It’s made up of regulated networks as well as offshore wind ventures. The company expects to invest £17 billion in New York and £11 billion in New England in the five years through 2029.
“For us, the vast majority of our capital program is determined at the state level, with the state regulators and the governor’s office,” Pettigrew said in an interview.
However, the company is also involved in a joint venture with RWE AG for a giant offshore wind site in New York, which was submitted to state authorities in October. The future of the project now looks less certain after Donald Trump vowed to issue an executive order targeting offshore wind development.
“We’re in that joint venture for the transmission that can be built, and we will only take those projects forward if they make economic sense for our investors,” Pettigrew said. “So for us, it’s about networks predominantly, rather than offshore wind.”
Higher Earnings
The utility earlier Thursday posted first-half earnings per share of 28.1 pence, up from 25.9 pence in the previous period and higher than the 26.9 pence forecast by analysts.
National Grid maintained full-year guidance, expecting “strong operational performance” and profit growth of around 10%, along with lower financing costs due to lower average net debt.
In Britain, the company builds and operates large parts of the electricity network. Expanding this infrastructure is key to the UK reaching renewable goals and decarbonizing its energy system. National Grid recently raised £7 billion, which will help support a £60 billion investment program for networks in the UK and US over the next five years.
The company also welcomed planning reform, which was set out in the King’s Speech earlier this year. Large parts of National Grid’s upgrade program will see transmission towers built across the British countryside, which has caused uproar and opposition in some communities. The government wants to make it harder for these projects to be blocked as it works toward 2030 clean-power goals — to which grid upgrades are essential.
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