Serica Energy PLC
LSE:SQZ
Serica Energy PLC
Serica Energy Plc engages in the exploration, development, and production of oil and gas. The principal activity of the Company is to identify, acquire and exploit oil and gas reserves. The firm operates the Bruce, Keith and Rhum assets in the Northern North Sea. Its Bruce, Keith and Rhum assets include over 25 wells, three bridge-linked platforms and subsea pipelines and infrastructure that tie-in Rhum, Keith and the Western area of Bruce to the Bruce facilities. The firm is also a partner in the producing Erskine field and is the development operator for the Columbus gas-condensate field, both located in the Central North Sea. Erskine is a high-pressure high temperature (HPHT) gas condensate field. Its Skerryvore and Ruvaal prospects lie in the Central North Sea, located approximately 60km south of the Erskine field. The firm's Blocks 3/24c and 3/29c contain the North Eigg and South Eigg prospects and are located in the Northern North Sea, adjacent to Rhum Field in Block 3/29a.
Serica Energy Plc engages in the exploration, development, and production of oil and gas. The principal activity of the Company is to identify, acquire and exploit oil and gas reserves. The firm operates the Bruce, Keith and Rhum assets in the Northern North Sea. Its Bruce, Keith and Rhum assets include over 25 wells, three bridge-linked platforms and subsea pipelines and infrastructure that tie-in Rhum, Keith and the Western area of Bruce to the Bruce facilities. The firm is also a partner in the producing Erskine field and is the development operator for the Columbus gas-condensate field, both located in the Central North Sea. Erskine is a high-pressure high temperature (HPHT) gas condensate field. Its Skerryvore and Ruvaal prospects lie in the Central North Sea, located approximately 60km south of the Erskine field. The firm's Blocks 3/24c and 3/29c contain the North Eigg and South Eigg prospects and are located in the Northern North Sea, adjacent to Rhum Field in Block 3/29a.
Record Results: Serica's 2022 operating profit and profit after tax more than doubled year-on-year, reaching record levels for the company.
Production Growth: Production increased 18% in 2022 to 26,200 barrels of oil equivalent per day, driven by strong operational performance and continued investment.
Reserves Upgraded: 2P reserves increased from 62 million to 75 million barrels over 2022, with combined group reserves now around 130 million barrels after the Tailwind deal.
Dividend Boost: Full year 2022 dividend set at £0.22 per share, up from £0.09 the previous year, with a final dividend of £0.14 recommended.
Tailwind Acquisition: Acquisition completed in March 2023, diversifying Serica’s portfolio and shifting production to a more balanced oil/gas mix; 2023 guidance of 40,000–47,000 BOE/day.
Cash Position: Cash doubled to £433 million by year-end 2022 despite investments, dividend payments, and hedging margin calls.
Cost Control: Production costs reduced to under $16 per BOE in 2022, despite industry-wide inflation.
Strategic Outlook: Company plans continued M&A, asset optimization, and maintaining a progressive dividend, while remaining cautious amid UK tax changes and commodity price volatility.
