Serica Energy PLC

SQZ

Equity

ISIN GB00B0CY5V57 / Valor 2276336

LSE London Stock Exchange, SETS (2026-10-02)

GBP 2.57-0.77%

Serica Energy PLC
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About company

Serica Energy PLC is a British independent company focused on the exploration and production of oil and gas, primarily operating within the UK Continental Shelf (UKCS). The company manages a balanced portfolio of assets in the UK North Sea, producing oil and gas from 11 fields, with over 80% of its production operated directly by Serica. With 2P reserves exceeding 140 million barrels of oil equivalent (BOE), Serica Energy emphasizes innovation and investment to extend the life of its assets and optimize developments through the use of subsea infrastructure. The company is supported by a team of approximately 200 employees and generates robust cash flows that enable it to provide a material dividend to its shareholders.

Summarized from source with an LLMView SourceSector: Energy

Production

H1 2026 production averaged 44,700 boepd (H1 2025: 24,700). Q2 2026 averaged 50,200 boepd, driven by a step‑change at Triton (20,300 boepd in Q2, >95% uptime). Bruce Hub ~18,100 boepd and West of Shetland ~6,300 boepd (Lancaster ceased in May; GLA added from 26 March).

Financial performance

Revenue $677.1m (H1 2025: $304.9m). EBITDAX $300.6m (H1 2025: $118.5m). Post‑tax cash from operations $280m; free cash flow $184m; H1 capex $81m. Cash and restricted cash $326m at 30 June 2026; reported adjusted net cash $26m.

Balance sheet & financing

Issued a $300m five‑year Nordic bond (May 2026) and refinanced RBL to a new $750m six‑year facility (completed July), giving pro‑forma liquidity of about $784m. Reported interest‑bearing debt comprises the $300m bonds (net of fees).

Accounting items & tax

Operating loss before tax of $75.6m was driven by non‑cash unrealised hedging losses of $110.8m and a goodwill expense of $95.6m. Recognition of deferred tax assets produced an $81.7m tax credit, resulting in a small profit after tax of $6.1m.

M&A and portfolio moves

Completed acquisition of a 40% interest in the Greater Laggan Area (TotalEnergies) on 26 March and ONE‑Dyas interests (Catcher/GEAD) in June. Recommended acquisition of Pharos Energy announced post‑period. Spirit Energy asset acquisition now expected to complete 1 October 2026 and is planned to be immediately cash‑generative.

Organic growth & drilling programme

Serica expects to sign a rig contract imminently for a ~400‑day programme (option to extend) to drill up to six wells. Drilling is expected to start Q3 2027 at Bruce (SCE/SCW) with potential first production ~12 months after start. The company targets ~30,000 boepd incremental from short‑cycle projects and >50,000 boepd average from the UK into the next decade.

Guidance & shareholder returns

2026 production guidance revised to above 40,000 boepd (post‑Spirit completion). Capex guidance unchanged at $175–195m; opex guidance $380–400m (excl. $65m Lancaster). Post‑tax CFFO guidance $450–475m. Interim dividend declared 6p (payable 19 Nov 2026).

Hedging & key sensitivities

Hedging remains in place through 2026–28 (oil collars/floors ~ $62–63/bbl; gas floors 55–66p/therm). Mark‑to‑market hedges produced a net derivative liability of ~$80.6m at 30 June 2026. Management highlights commodity price movements, hedging mark‑to‑market, and decommissioning provisions as principal near‑term financial sensitivities.

Summarized from source with an LLMView Source

Key figures

29.8%1Y

6.82%3Y

12.6%5Y

Performance

54.0%1Y

47.9%3Y

50.6%5Y

Volatility