National Grid Plc posted strong full-year profit as the UK utility’s networks business grew in Britain and the US.

The sprawling London-based company reported adjusted earnings per share of 69.7 pence (87 US cents), just beating the 69.5-pence estimate of analysts. Underlying operating profit jumped to £4.6 billion.

National Grid is a central pillar of the UK’s transition to net zero emissions and forms the backbone of its power system. Its distribution and transmission units deliver electricity to millions of homes and businesses, while its ventures arm trades power internationally and invests in new technologies.

The group faces strict cost controls in the UK after regulator Ofgem said in November that it would allow the utility to invest less than it hoped to until 2028. The company can still make more profit by beating performance targets set for it and working more efficiently.

National Grid warned in April that earnings might be hit after a UK budget measure on tax expenses was seen crimping revenue from transmission and distribution. The company’s cross-border interconnectors benefited last year from new commissions and power price volatility, which is now subsiding.

“For 2023/24, we expect underlying EPS to be modestly below 2022/23 levels following the UK government’s change to the capital allowance regime,” National Grid said Thursday in a statement.

The company also welcomed US President Joe Biden’s Inflation Reduction Act, saying it’s “a major step forward for our zero fossil strategy” and has the potential to lower the cost of hydrogen and renewable natural gas. National Grid’s American arm runs pipelines in the northeast US in which it’s preparing to use greener fuels.

The company confirmed a final dividend of 37.6 pence. It also said it expects net debt to rise by £4.5 billion in the next year from £41 billion. A stable debt ratio is crucial to give investors confidence that its liabilities aren’t too high compared to the value of its assets.