Serica Energy PLC  

Serica Energy PLC (LSE: SQZ) is an FTSE AIM UK 50 index-listed United Kingdom-based oil and gas company. The Company has exploration and development activities based in the United Kingdom, Ireland, Namibia, and Morocco and an economic interest in an oilfield offshore Norway.

FY24 Results (Released on 03 December 2024)

1. Production Performance and Operational Challenges: Serica reported average production of 37,800 boepd for the first nine months of 2024, up from 31,500 boepd in the same period last year. However, Q3 production dropped to 26,000 boepd, affected by annual maintenance at Triton and a gas compressor outage. Repairs have been completed, and production is expected to resume shortly, but operational vulnerabilities persist until maintenance concludes in Q1 2025.

2. Cash Flow and Financial Position: Serica generated $139 million in revenue for Q3 2024 (Q3 2023: $135 million). The company held $258 million in cash as of 30 September 2024, offset by $231 million of debt, resulting in a net cash position of $27 million. Q3 cash outflows were driven by $70 million in dividend payments and a $40 million tax payment.

3. Drilling Campaign and Near-Term Growth: The Gannet GE-05 well was tied into the Triton FPSO under budget and ahead of schedule, with production expected imminently. Additionally, the EC1 well on Guillemot NW is on track to begin production in Q1 2025, followed by high-impact wells at Evelyn and Belinda in H1 2025. These projects signal robust near-term production growth.

4. Outlook: Serica expects full-year production of around 37,000 boepd and pre-tax capex of $260 million. Operating costs are forecast at $330 million, aligning with earlier guidance. Despite challenges, Serica remains active in evaluating cash-generative M&A opportunities and is considering a transition from AIM to the Main Market in 2025.

Share Price Chart

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Serica Energy PLC (LSE: SQZ)  was trading at the current market price of GBX 133.34 (as of 17 December 2024, 10:45 AM GMT) 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 17 December 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.