National Grid profits up 4 percent

LONDON (Reuters) - National Grid (NG.L) posted a 4 percent increase in half year profits, forecast full year results in line with its expectations and said the outlook for 2008/9 was positive.

National Grid, which runs energy networks in the UK and United States, said on Thursday that operating profit on continuing operations in the six months to September 30 rose to 1.079 billion pounds from 1.039 billion a year ago.

The results were slightly below Citigroup's forecast of 1.106 billion pounds, but above Credit Suisse's prediction of 1.070 billion.

Pretax profit on continuing operations fell 26 percent to 558 million pounds and the company increased the interim dividend by 8 percent to 12.64 pence per share.

Chief Executive Steve Holliday said first half earnings reflected the seasonality of the former Keyspan businesses in the United States, which it bought in August 2007. The group's financial position remained strong and its outlook for 2008/9 was positive, he said.

"We remain on track to deliver in line with our expectations for the full year," he said in the group's half year results statement.

(Reporting by Philip Waller)