National Grid eyes US expansion

Investors will find out more about National Grid's plans for international expansion on Tuesday.

The company is expected to report half year pre-tax profits before one-off costs of between £212m and £260m.

This compares with £260m in the same period last year.

The company is nearing completion of its acquisition of Niagara Mohawk and should already be demonstrating progress on its existing US business.

Analysts at Deutsche Bank say the acquisition is progressing well, with completion expected in early 2002.

The UK business is expected to remain steady.

Andrew Fisher of Gerrard says: "This is essentially a year of consolidation for National Grid, as it awaits US regulatory approval for its next phase of US expansion.

"News will also be sought on the proposed formation of the Alliance Regional Transmission Organisation (RTO), which is expected to manage the electricity transmission systems of 11 US companies in 10 states."

National Grid will take a lead role in a proposed independent transmission company , Alliance Transco, which is being set up to operate the RTO.

An interim dividend of 6.5p is expected, against 6.05p the year before.