Serica Energy PLC

Latest Results (14.08.2024):

Revenue and Sales Volumes

Serica Energy PLC reported total product sales volumes for the first half of 2023, comprising approximately 227 million therms of gas, 2.2 million lifted barrels of oil, and 30,000 metric tonnes of NGLs. This represents an increase in gas and oil sales volumes compared to the first half of 2022, which saw 216 million therms of gas and 0.5 million barrels of oil sold. The increase in oil revenue reflects new revenue streams from the largely oil-based Tailwind portfolio.

Gross Profit

The gross profit for Serica Energy PLC in the first half of 2023 was £180.1 million, down from £267.1 million in the first half of 2022. The overall cost of sales increased to £160.5 million from £86.3 million in the same period last year. This increase was driven by higher production volumes and operating costs, as well as non-cash depletion charges.

Operating Profit

Serica Energy PLC's operating profit for the first half of 2023 was £159.5 million, compared to £196.3 million for the first half of 2022. This figure includes hedging expenses related to gas price swaps and administrative expenses that have increased due to the growth in activities following the acquisition of Tailwind Energy Investments Ltd.

Profit Before and After Taxation

Profit before taxation for Serica Energy PLC in the first half of 2023 was £298.3 million, up from £194.5 million in the first half of 2022. This increase includes a gain on acquisition of £139.6 million from the Tailwind transaction. After accounting for taxation charges, the profit after taxation was £175.5 million, compared to £116.7 million for the same period in 2022.

Balance Sheet and Cash Flow

Serica Energy PLC's balance sheet as of 30 June 2023 shows a significant increase in total property, plant, and equipment to £888.9 million, primarily due to the fair value attributed to the Tailwind assets upon acquisition. The company's cash balances increased from £432.5 million at the end of 2022 to £444.0 million at the end of June 2023, reflecting strong cash flow from operations and various capital expenditures.