10th Sep 2024 10:43
(Alliance News) - Serica Energy PLC on Tuesday posted mixed financial results for the first half with profit impacted by greater costs and capital expenditure.
The London-based oil & gas company with operations in the North Sea said pretax profit fell 30% to USD188.5 million in the first half that ended June 30 from USD267.9 million the previous year.
Revenue increased 9.4% to USD461.6 million from USD421.8 million, as cost of sales jumped 38% to USD254.7 million from USD185.2 million.
Production declined 11% to 43,700 from 49,350 barrels of oil equivalent per day with a split of 60% gas and 40% liquids.
Capital expenditure increased to USD123.8 million from USD23.7 million.
Serica Energy completed a USD19 million buyback in the half and declared a flat interim dividend at 9 pence per share.
Chief Executive Officer Chris Cox said: "We want to continue reinvesting our cash flows into our UK North Sea assets. As a reservoir engineer, I am encouraged that there are multiple attractive opportunities to invest in our portfolio to allow us to sustain production and deliver home-grown low-carbon energy in the medium term.
"However, we will only be able to make these investments if the fiscal environment allows us to generate a fair return on your capital. We also have the option to add to our portfolio through acquisitions and that is why we will continue, intensively but prudently, to seek value-accretive M&A, both at home and abroad."
Looking ahead, full-year production is expected to be at the lower end of the 41,000 to 46,000 boepd guidance range compared with 40,100 boepd in 2023.
Serica Energy shares were down 4.3% at 112.10 pence each in London on Tuesday morning.
By Elijah Dale, Alliance News reporter
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