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Centrica still a good Venture

TIP UPDATE: Harsh winter and lower input costs boost Centrica
July 28, 2010

Centrica reported a whopping 55 per cent increase in operating profits to £1.45bn, on flat revenues, after a number of factors swung in the utility company's favour in the first half of the year.

IC TIP: Buy at 301p

The owner of British Gas witnessed a 78 per cent increase in downstream operating profits, as higher volumes due to the harsh winter, and lower commodity costs, were only slightly offset by higher transmission costs and weakened retail tariffs. The Upstream division's results included the first time contributions from the acquisitions of Venture and British Energy, so producing higher gas and power volumes. And encouragingly, the group's North American business saw operating profits rise 25 per cent. Overall, full-year results are expected to be 'heavily weighted' towards the first-half of the year.

What we said:

When: 17/03/10

Price: 232p

Performance: +30%