National Grid increases 2012 full year dividend by 4%

Good financial results led by solid operational performance in 2012/13

Operating profit up 4% before currency movements, timing and major US storms

Profit before tax up 6%

Earnings per share up 12% to 56.1p, up 13% excluding timing and major storm impacts

Continued strong UK performance. Improved US regulated return on equity: up 40bp to 9.2%

Recommended full year dividend up 4% to 40.85p in line with one year policy

Significant strategic and regulatory progress

Agreed new eight year UK price controls covering nearly £24bn of regulated assets

Finalised four US rate cases with two others settled, pending approval: covering approximately 55% of US rate base

Capital investment of £3.7bn, contributing to £2.7bn growth in regulated assets

Strong financial position: issued £2bn of very competitively priced hybrid bonds

Outlook for 2013/14

Continued growth driven by efficient investment, strong operating cash flows and attractive returns

New dividend policy to apply from 1 April 2013 - aim to grow the ordinary dividend at least in line with the rate of RPI inflation each year for the foreseeable future

Financial results for continuing operations

Commenting on the outlook for 2013/14, Steve Holliday added: "In the UK, we are positioned to make a strong start to the new eight year regulatory regime. We are focused on meeting our regulatory commitments by operating efficiently and investing in essential infrastructure, while delivering high standards of customer service, driving good returns for shareholders.

In the US, we are focused on securing the benefits of our recent rate agreements and investment in new systems while delivering enhanced customer service and network growth which will help us to build on our significant progress to date.

Overall, we expect to deliver another year of good operating performance and dividend growth."