Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Jefferies’ analyst Mark Wilson reaffirms a Buy rating with a price target of AUD 3.96, reflecting an 8.7% upside.

  • Stifel Europe’s Christopher Wheadon issues a Buy recommendation with a price target of AUD 4.67, implying an upside potential of 28.15%.

  • Canaccord Genuity’s James Hallam sets a Buy rating with a target price of AUD 4.48, suggesting a 23% upside.

Serica Energy plc (AIM:SQZ), an independent British upstream oil and gas company with operations concentrated in the UK North Sea, has received reaffirmed support from major analysts following its interim financial results for the first half of 2025. Analysts at Jefferies, Stifel Europe, and Canaccord Genuity all issued positive ratings, reflecting confidence in the company’s operational recovery and forward growth prospects.

Jefferies Rating:
Mark Wilson of Jefferies maintained a Buy recommendation with a price target of AUD 3.96 (GBP 2.27 / USD 2.61), representing an 8.7% potential upside from current trading levels. \

Stifel Europe Rating:
Christopher Wheadon of Stifel Europe reiterated a Buy stance, setting a price target of AUD 4.67 (GBP 2.68 / USD 3.08). This reflects a 28.15% upside, the highest among current analyst estimates. 

Canaccord Genuity Rating:
James Hallam of Canaccord Genuity also maintained a Buy rating, with a price target of AUD 4.48 (GBP 2.57 / USD 2.96). 

Operational and Financial Performance:
For H1 2025, Serica reported production of 24,700 boepd, down from 43,700 boepd in H1 2024 due to the Triton FPSO shutdown earlier in the year. However, production recovered to 21,600 boepd in July, supported by well optimisation at Bruce and the resumption of Keith.

The company’s cash position improved to USD 174 million, up from USD 148 million at the end of 2024, aided by a USD 71 million tax refund. Net debt was reduced to USD 57 million, while liquidity stood at USD 433 million. An interim dividend of 6 pence per share was declared, payable on 20 November 2025.

Outlook:
Serica expects production in H2 2025 to rise significantly, targeting 33,000–35,000 boepd for the full year. Capital expenditure is anticipated at the higher end of the USD 220–250 million range as the Belinda field advances toward production in early 2026.