Wed. Sep 20th, 2023
    Serica Energy Reports Rise in Pretax Profit, Decline in Revenue

    Serica Energy, a UK-based oil-and-gas company, has announced an increase in its pretax profit for the first half of the year, although revenue has experienced a decline. The company’s pretax profit rose to GBP298.3 million, compared to GBP194.5 million in the previous year. This rise can be attributed to a gain of GBP139.6 million from an acquisition made in the Tailwind transaction.

    However, Serica Energy’s revenue fell to GBP340.6 million, down from GBP353.5 million. The decrease in revenue is mainly due to lower realized pricing for gas, although there was some offset from new revenue streams from the Tailwind portfolio, which is predominantly oil-based.

    In light of the slower-than-expected ramp up of production from the Bruce and Triton hubs following planned summer shutdowns, Serica Energy has revised its full-year production guidance. The company now expects to produce between 40,000 and 45,000 barrels of oil equivalent per day, down from the previous guidance of 40,000-47,000 barrels a day. However, Serica Energy anticipates increased well and drilling activity across the Bruce and Triton hubs over the next eighteen months.

    Despite the decline in revenue and adjusted production guidance, Serica Energy has declared an interim dividend of 9 pence per share, an increase from 8 pence.

    This news has had an impact on Serica Energy’s share price, which was down 7.5% at 247.8 pence as of 0841 GMT.

    – Joe Hoppe ([email protected])