Serica Energy profit surges after North Sea asset acquisition
Serica Energy PLC on Thursday said it is well-positioned to deliver its growth plans, as it reported sharp rises in profit and revenue following its purchase of North Sea exploration blocks from TotalEnergies SE in March.
With the addition of West of Shetland assets to its portfolio, as at June 30, the London-based oil and gas producer in the UK North Sea produced 44,700 barrels of oil equivalent per day, compared with 24,700 barrels of oil equivalent per day a year before, an increase of 81.0%.
The higher production levels were reflected in Serica's pretax profit, which rose to USD301 million in the first half of 2026 from USD118 million a year before, an increase of 155.1%.
Serica's revenue almost doubled, rising 99.0% to USD677 million from USD305 million.
The average Brent oil price rose to USD93 per barrel from USD70 per barrel, an increase of 27.4%. Free cash flow surged 607.7% to USD184 million from USD26 million.
Serica on Thursday proposed keeping its dividend unchanged at 6 pence per share, "reflecting the board's confidence in Serica's cash generation and financial position", the company said.
Chief executive Chris Cox said: "Serica delivered a strong first half, with robust production, material free cash flow and a significantly strengthened balance sheet. The operational work completed last year is now translating into much improved asset performance, most notably at Triton, and the addition of production from new assets has provided a further boost. Together with a supportive commodity price environment, this performance generated USD184 million of free cash flow and enabled Serica to move from net debt at year-end 2025 to a net cash position at June 30, 2026."
Cox said the company "successfully completed both the issue of a new five-year Nordic bond and refinanced our RBL facilities with a new six-year maturity USD750 million facility".
Going forward, Serica aims to establish a significant international business, with the recommended purchase of Pharos Energy, which is yet to be completed, representing the first step in delivering this strategy, Cox said.
The company said work is progressing to move from AIM to the main market of the London Stock Exchange and remains on track for completion in 2026.
Serica shares were up 3.1% at 232.00 pence per share on Thursday afternoon in London.
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