logo-loader

Serica Energy posts 11-fold jump in pretax profit

Published: 05:57 21 Apr 2022 EDT

Serica Energy PLC

Serica Energy PLC, a North Sea oil and gas producer, reported an 11-fold jump in pretax profit in 2021 boosted by a surge in oil and gas prices.

Pretax profit soared to £135.1mln from £12.5mln in 2020 as revenue surged more than 300% to £514.1mln.

"2021 was an outstanding year of progress for Serica, which demonstrated the value of our through-cycle investment strategy resulting in the R3 and Columbus projects reaching first production,” said chief executive Mitch Flegg.

“This increases Serica's gas output to over 85% of our total production, further increasing our contribution to the provision of vital lower carbon gas to the UK's energy market.”

Average net production dipped to 22,200 barrels of oil equivalent per day (boepd), from 23,800 boepd in 2020, after extended 2021 maintenance programmes.

The AIM-traded company said it reduced its 2022 production guidance range to 26,000-30,000 boepd, from 27,100-33,600 boepd previously, reflecting lower Columbus production rates and current supply chain limitations causing 2022 programme delays.

It plans to pay a dividend of 9 pence per share, up from a 3.5p payout for 2020, subject to shareholder approval. It will also be seeking shareholder approval to enable a possible share buyback sometime in the future.

Serica said it entered 2022 with strong cash balances and no borrowings, prices remaining high and the retention of 100% of the cashflow from the Bruce, Keith and Rhum fields.

“We will continue to pursue our investment-led strategy this year with a planned well intervention programme on the Bruce, Keith and Rhum fields in addition to our exploration well at North Eigg,” said Flegg.

“As always, we continue to look for acquisition opportunities that fit our criteria and will add value for our stakeholders." 

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

11 minutes ago