Shares in British Gas owner Centrica (CNA) have risen by
150% in value since October 2022. Those gains increase to 420% if you go back to April 2020.‘Centrica’s share price recovery since Covid lows has been meteoric, as the company successfully navigated volatile market conditions, culminating in increased buybacks and dividend growth,’ says Berenberg analyst Marc Ip Tat Kuen.

While impressive, the strong gains should be seen against a miserable longer-term backdrop for shareholders which saw the shares sink from around 400p a decade ago to lows of around 33p as the pandemic struck. Now trading at 172p, they still have a long way to go to return to those giddy heights.

Strong energy prices have played their part in Centrica’s revival with analysts finding it hard to keep pace. For instance, earnings forecasts have doubled over the last year according to LSEG data.

In the first half of 2023 operating profit surged to a record £969 million from £98 million last year but the company is clear this level of profit will not be sustained longer term.

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