- Serica Energy
- 26 March 2026 14:33:49
Source: Sharecast
Production fell to 27,600 barrels of oil equivalent per day in 2025 from 34,600 boepd a year earlier, impacted by unscheduled downtime at the Triton FPSO.
Revenue declined to $601m from $727m, while EBITDAX dropped to $210m from $379m.
The AIM-traded group reported a loss after tax of $52m, compared with a profit in the prior year, driven by a $65m non-cash deferred tax charge linked to the extension of the UK’s Energy Profits Levy.
Average realised oil prices fell to $67 per barrel from $75, although gas prices rose to 84p per therm from 76p.
Free cash flow was negative at $24m, compared with a $1m outflow in 2024, while cash and restricted cash declined to $31m from $148m, leaving net debt at $200m.
“Serica delivered positive strategic progress in 2025, significantly strengthening our portfolio and organisation, and positioning the company for materially increased production and the delivery of future growth,” said chief executive Chris Cox.
He added that acquisitions completed during the year would support higher output, with production “set to reach over 65,000 boepd by the end of 2026 as they all complete,” and noted that current production has already recovered, averaging over 50,000 boepd since the resumption of operations at Triton in March.
The firm announced four acquisitions in 2025 at a combined valuation of $3.3 per barrel of 2P reserves, which were expected to more than double the number of producing fields in its portfolio and increase diversification.
Pro forma 2P reserves rose 19% to 138.5m barrels of oil equivalent, with a greater weighting towards gas.
Separately, Serica confirmed completion of its acquisition of a 40% operated interest in the Greater Laggan Area from TotalEnergies, providing net production of just over 5,000 boepd and a strategic position in West of Shetland gas infrastructure.
The deal included interests in four nearby exploration licences and infrastructure such as the Shetland Gas Plant, with additional growth opportunities including the Glendronach tie-back and Tormore infill drilling.
It said it paid nominal consideration of £1 and received $55.7m reflecting interim cash flows since the economic date.
Serica said its balance sheet remained supported by total liquidity of $290m, including undrawn facilities, and expects its net debt position to more than halve in the first quarter of 2026 following the receipt of proceeds from the TotalEnergies transaction.
The group also highlighted tax assets with a notional value of more than $1bn.
Looking ahead, Serica reiterated guidance for 2026 production of significantly over 40,000 boepd and expects output to increase further as acquisitions complete.
The company forecast material free cash flow generation in 2026 even at lower commodity price assumptions, supported by hedging activity and a focus on short-cycle, low-risk investments.
A final dividend of 10p per share was declared, unchanged from the prior year, payable in July 2026 subject to shareholder approval.
At 1132 GMT, shares in Serica Energy were up 0.98% at 257p.
Reporting by Josh White for Sharecast.com.
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