Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Serica Energy revenue, earnings fall in full-year results
(Sharecast News) - Serica Energy reported a shift in average realised sales prices in its final results on Wednesday, with post-hedging prices averaging around $63 per barrel of oil equivalent for 2023, a decrease from $104 in 2022. The AIM-traded firm said the decline primarily reflected lower natural gas prices, partially offset by contributions from the Tailwind assets.
Revenue for the year totaled £632.6m, a decrease from £812.4m in 2022, while its EBITDAX stood at £381.4m, down from £616.5m in 2022.
Profit before tax amounted to £305.6m, compared to £488.2m in the prior year, with a subsequent profit after tax of £103m, reflective of current tax charges.
Operationally, Serica noted the completion of the acquisition of Tailwind Energy Investment on 23 March 2023, contributing to proforma production averaging 40,121 barrels of oil equivalent per day throughout the year.
Additionally, the company's 2P reserves increased to 140.3 million equivalent barrels at the end of 2023, with net upward revisions of 23.5 million barrels.
Operational achievements included successful interventions on several Bruce wells, the start of production from the GE-04 well on the Gannet E field, and ongoing maintenance efforts to enhance facility performance, including the replacement of the Triton control system.
Looking ahead, Serica said it had initiated an extensive drilling campaign in the Triton area, aiming to enhance production and development activities across various fields.
Capital expenditure for 2024 was estimated at around £170m, with production guidance ranging from 41,000 to 46,000 barrels of oil equivalent per day, reflecting ongoing operational optimisation efforts.
Serica said it was actively managing commodity price exposure through new hedging strategies, while pursuing major capital projects such as the Buchan Horst field, contingent on future tax regime considerations.
Serica said it remained committed to delivering shareholder value through initiatives such as a proposed final dividend for 2023 and a £15m share buyback programme.
"The completion of the Tailwind acquisition in March 2023 represented a step change in the scale and diversity of Serica's portfolio," said the firm's outgoing chief executive officer Mitch Flegg.
"The merits of seeking diversity and organic growth opportunities through the transaction have been borne out by the sharp decline in gas prices relative to oil prices during 2023 and Serica maintaining its track record of more than replacing production through reserves additions in both the Bruce and Triton production hubs.
"Moreover, there are further growth opportunities within the company's existing producing fields and other assets in Serica's portfolio, such as the potential Buchan Horst project."
At 1229 BST, shares in Serica Energy were up 0.88% at 195.5p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.