National Grid has upgraded its full-year earnings guidance after reporting a 13% increase in underlying operating profit and accelerating investment across its UK and US energy networks.

The FTSE 100 utility company is committing £70bn over the next five years to modernise and expand energy networks in the UK and US Northeast.

Revenue increased 15% to £8.14bn in the six months to September, while underlying operating profit rose to £2.59bn. Underlying earnings per share climbed 22% to 36.5p. Statutory pre-tax profit more than doubled to £1.73bn from £826m, although this included favourable timing movements and exceptional gains.

The strongest performance came from UK electricity transmission, where underlying operating profit increased 45% to £1.23bn, reflecting higher allowed revenues under the new RIIO-T3 price control and increased network investment. The group's US regulated businesses also benefited from higher revenues.

The electricity and gas network operator expects to invest around £13.5bn during the current financial year and at least £70bn over the five years to March 2031.

Capital investment rose 32% to £6.71bn on the back of the accelerated spending on electricity transmission and distribution infrastructure. The company said it had secured supply chain and delivery arrangements for around 80% of its five-year investment programme, which is expected to support annual asset growth of around 10%.

National Grid also maintained its longer-term target of underlying earnings per share growth of 8-10% annually through to 2030/31 and increased its interim dividend by 4% to 16.97p per share. It now expects underlying earnings per share to grow by 15-16% in the year to March 2027, compared with previous guidance of growth of slightly above 13-15%.

CEO Zoë Yujnovich said: “Our results for the first half show that capital investment is accelerating – increasing by one-third, our major projects are progressing, and the changes we are making within National Grid are sharpening performance in service of better outcomes for customers and stakeholders.

"Our capital delivery will underpin economic growth, electrification, and energy security, supporting long term affordability and reliability. In the UK, our planned £40 billion capital investment will help reduce system constraint costs for the benefit of consumers, and support more than 60,000 jobs.

"This first half progress further strengthens our confidence in delivering the five-year framework we set out in March.”

Shares rose 2.5% to 1,297p in early Thursday trading.

---