UK's National Grid lifts outlook as Norway power link provides boost

Britain's National Grid said on Thursday it is expecting its annual earnings growth to beat its forecasts, as the company benefits from an early commissioning of the North Sea Link electricity interconnector between Britain and Norway. Annual underlying earnings per share growth would come in "significantly above" the top end of its 5%-7% outlook range, National Grid said.

Britain's National Grid said on Thursday it is expecting its annual earnings growth to beat its forecasts, as the company benefits from an early commissioning of the North Sea Link electricity interconnector between Britain and Norway.

Annual underlying earnings per share growth would come in "significantly above" the top end of its 5%-7% outlook range, National Grid said. The forecast was also driven by higher auction prices across its electricity interconnector portfolio. The North Sea Link power cable worth 1.6 billion euros ($1.8 billion) began commercial operations early last month and is expected to improve the UK's energy security as the country grapples with soaring energy costs.

The link will be able to channel up to 1.4 gigawatts of electricity between the two countries when it reaches full capacity, enough to power around 1.4 million homes. Record high energy prices in Britain have resulted in around 20 energy suppliers going bust and also caused some industrial firms to cut output amid warnings of food shortages this winter.

European wholesale gas and power prices have rocketed this year due to lower-than-usual gas stocks this summer, reduced supply from Russia, the onset of colder temperatures and infrastructure outages. National Grid, which operates two gas franchisees in the United States and runs Britain's energy system, said underlying operating profit from continuing operations jumped 47% to 1.41 billion pounds in the six months ended Sept. 30.

The FTSE 100 firm also declared an interim dividend of 17.21 pence per share, slightly higher than the 17 pence it paid a year earlier. ($1 = 0.7409 pounds)

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