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Highlights

  • Production impacted by Triton FPSO downtime, with Q1 2025 output at 27,600 boepd; production expected to rebound in June.
  • Encouraging subsurface results from development drilling, with new wells set to boost output in H2 2025.
  • Final dividend declared at 10p per share, bringing total 2024 shareholder returns to $114 million.

Serica Energy plc (LSE:SQZ) has released its audited financial results for the year ended December 31, 2024, alongside updates on production, drilling, and its strategic outlook for 2025.

Triton FPSO Downtime Affects 2024 Production, Recovery Expected in H2 2025

Serica reported an average production of 34,600 barrels of oil equivalent per day (boepd) in 2024, a decrease from 40,100 boepd in 2023, primarily due to unscheduled downtime at the Triton Floating Production Storage and Offloading (FPSO) unit.

In Q1 2025, production fell further to 27,600 boepd following a shutdown of the Triton FPSO in February and March. However, in collaboration with operator Dana Petroleum, Serica and its Triton joint venture partners have integrated the summer maintenance period into the current shutdown to enhance uptime for the remainder of the year.

  • Production from Triton is expected to resume in June 2025, with no further planned shutdowns for the rest of the year.

  • A second compressor will be available, addressing the instability issues that impacted production in 2024.

Drilling Success Positions Serica for Increased Production

Serica remained one of the most active operators of development drilling in the UK North Sea in 2024 and continues its program in 2025.

  • On January 23, 2025, before operations were halted due to Storm Éowyn, the Triton FPSO produced over 25,000 boepd—boosted by production from two newly drilled wells, Bittern B6 and Gannet GE05.

  • Encouraging results were also reported from two additional wells:

    • W7Z (Guillemot North West field, Serica 10%), set to begin production after Triton restarts.

    • EV02 (Evelyn field, Serica 100%), also scheduled to come online shortly after.

  • The final well in the campaign, BE01 (Belinda field, Serica 100%), is now being drilled, with first production expected in early 2026.

Financial Performance and Shareholder Returns

Serica declared a final dividend of 10 pence per share (2023: 14 pence per share), payable on July 25, 2025, bringing total shareholder returns for 2024 to $114 million, including:

  • $50 million final dividend (subject to AGM approval).

  • $45 million interim dividend paid earlier in 2024.

  • $19 million in share buybacks.

This aligns with the $112 million returned to shareholders in 2023, demonstrating Serica’s commitment to delivering direct returns of capital.

2025 Outlook

  • 2025 production forecast: 33,000-37,000 boepd (adjusted due to Triton FPSO downtime in Q1).

  • H2 2025 expected to outperform full-year guidance, with no additional summer shutdown planned.

  • Capital expenditure guidance unchanged at $220-250 million.

  • Operating expenses remain at ~$330 million.

  • Serica is evaluating a potential move from AIM to the Main Market of the London Stock Exchange in 2025.