Serica Energy PLC

Latest Results (19.04.2026):

Serica Energy PLC — results for the year ended 31 December 2025 (covering Q4 2025). The Company reported a year impacted by significant operational disruption at the Triton FPSO that reduced 2025 production to 27,600 boepd (2024: 34,600 boepd). Revenue was $601m, EBITDAX $210m and Serica reported a loss after tax of $51.8m (including a one‑off non‑cash deferred tax charge related to the EPL extension). Cash and restricted cash were $31m at year‑end while total drawn debt remained $231m (net debt $200m). Management highlights M&A progress and a pro‑forma production runway to materially higher volumes through 2026 as acquisitions complete.

Production & operational issues

Production averaged 27,600 boepd in FY2025 (down from 34,600 boepd) largely due to unscheduled Triton FPSO downtime. Production has rebounded in 2026 (averaging >50,000 boepd since 9 March after resumption) and Serica guides to significantly over 40,000 boepd for 2026, targeting >65,000 boepd by end‑2026 once 2025 acquisitions complete.

Revenue, profitability and tax

FY2025 revenue was $601m (FY2024: $727m). EBITDAX fell to $210m (FY2024: $379m). The Group posted a loss after tax of $51.8m (2024: profit $92.4m); the tax charge was $132m driven mainly by a $65m non‑cash deferred tax charge following the Energy Profits Levy (EPL) extension.

Balance sheet & liquidity

Cash and restricted cash at 31 Dec 2025 were $31m (31 Dec 2024: $148m). Drawn RBL was $231m (unchanged year‑on‑year), giving adjusted net debt of ~$200m at year‑end; Serica reported total liquidity of $290m including undrawn RBL availability ($259m). Receipt of $56m from TotalEnergies post‑completion is expected to more than halve net debt in Q1 2026.

M&A, reserves and portfolio growth

Serica completed multiple 2025 acquisitions (combined valuation cited as $3.3/2P boe) including completion of a 40% interest in the Greater Laggan Area from TotalEnergies. Reported 2P reserves were 116.8 mmboe at end‑2025; pro‑forma for announced acquisitions 2P rises ~19% to ~138.4 mmboe (portfolio becoming slightly gas‑weighted at ~54% gas pro‑forma).

Capital allocation, capex and cash flow outlook

FY2025 capex was $250m. 2026 guidance: capex $175–195m, opex $380–400m and unchanged guidance for materially positive free cash flow in 2026 even at conservative oil/gas price scenarios (company example: oil $63/bbl, gas 69p/therm). Management emphasises disciplined allocation to short‑cycle, low‑risk projects and selective M&A.

Hedging

Serica has been building its hedge book since early March 2026 to protect downside and lock in upside on the front of the curve; at 20 March 2026 the Group held oil and gas swaps/collars covering portions of 2026–27 (company disclosed weighted average hedge prices and volumes across quarters).

Dividends & shareholder returns

Serica declared a final dividend of 10p per share for FY2025 (unchanged from 2024), payable 24 July 2026 subject to AGM approval. Management signals a continued balance of reinvestment (organic and M&A) and returns as cash generation strengthens in 2026.