Serica Energy, a British independent upstream oil and gas company with operations in the UK North Sea, today announces its unaudited financial results for the six months ended 30 June 2026. The results are included below and copies are available at www.serica-energy.com and www.sedar.com.
Chris Cox, Serica's CEO, stated:
'Serica delivered a strong first half, with robust production, material free cash flow and a significantly strengthened balance sheet. The operational work completed last year is now translating into much improved asset performance, most notably at Triton, and the addition of production from new assets has provided a further boost. Together with a supportive commodity price environment, this performance generated $184 million of free cash flow and enabled Serica to move from net debt at year-end 2025 to a net cash position at 30 June 2026.
We have taken advantage of attractive market conditions and successfully completed both the issue of a new five-year Nordic Bond and refinanced our RBL facilities with a new six-year maturity $750 million facility. This gives Serica substantial liquidity and flexibility as we enter the next phase of organic investment and portfolio growth. We expect to shortly confirm contracting of a rig to deliver our high-impact and rapid return organic growth projects in the UK North Sea, and continue to seek further opportunities to deliver shareholder value via M&A both in the UK and internationally.
A long-standing objective is to establish a significant international business to complement our position on the UKCS. The recommended acquisition of Pharos Energy represents the first step in delivering that strategy, and the deal, should it complete, is set to deliver value accretive, materially cash-generative diversification and act as an ideal platform for further international growth.'
Highlights
Significant production growth driven by improved uptime and new West of Shetland contribution
- Production increased to 44,700 boepd net to Serica in H1 2026 (H1 2025: 24,700 boepd), in line with guidance, a material increase from the prior year due to higher portfolio uptime and the addition of production from newly acquired assets West of Shetland
- Production in Q2 averaged 50,200 boepd, underpinned by a step-change in Triton performance, where production contributed 20,300 boepd with asset uptime of over 95%
Material free cash flow drives move to net cash position
- Serica is robustly positioned to take advantage of opportunities to create material shareholder value, with cash of $326 million as of 30 June 2026 (31 December 2025: $31 million), a material increase since year end 2025 due to robust production, higher commodity prices, and the receipt of $56 million upon completion of the acquisition of assets West of Shetland from TotalEnergies
- Net cash of $26 million as of 30 June 2026, following completion of $300 million five-year Nordic bond in May
- Completion in July of six-year Reserves Based Lending ('RBL') facilities totalling $750 million supporfng a robust liquidity posifon of $784 million as of 30 June 2026 pro forma for the new RBL borrowing base, providing substanfal capacity to support the Company’s UK investment programme, future decommissioning security requirements and disciplined M&A
- Capital expenditure on a cash basis of $81 million in H1, of which $50 million was spent on the Bruce Hub
- Interim dividend of 6p declared today (2025 interim dividend: 6p), reflecting the Board’s confidence in Serica’s cash generation and financial position
- The interim dividend is payable on 19 November 2026 to shareholders registered on 23 October 2026, with an ex-dividend date of 22 October 2026
Rig set to be leased ahead of high-impact organic growth programme
- As detailed at the Capital Markets Day on 2 June, Serica has a portfolio of short-cycle projects with the potential to add 30,000 boepd of incremental production, supporting annual average production of over 50,000 boepd into the next decade. The programme is expected to deliver average rates of return above 40%, reinforcing the capital efficiency of Serica’s organic growth portfolio
- Serica expects to sign a rig contract in the coming weeks for a drilling programme estimated at around 400 days duration, with an option to extend, giving the potential to drill up to six wells across the Company’s expanded portfolio
- Drilling is expected to begin with the Bruce SCE and SCW wells in Q3 2027, with the potential for first production 12 months from the start of drilling
Disciplined M&A adds scale, diversification and cash-generative growth
- The acquisition of the 40% interest in the Greater Laggan Area from TotalEnergies completed on 26 March, adding a new operated production and development hub in the high-potential West of Shetland basin
- Post period end, Serica announced the recommended acquisition of Pharos Energy, completion of which would provide a first step in our long-standing strategic objecfve of adding internafonal expansion, boosting our reserves, resources and adding cash-generative production, presenting a plamorm from which to grow
- Serica continues to rigorously evaluate a pipeline of M&A opportunities, both in the UK North Sea and other areas in which the Company can successfully deliver its strategyAIM-listed Serica Energy, a British independent upstream oil and gas company with operations in the UK North Sea, has announced its unaudited financial results for the six months ended 30 June 2026.
Outlook and guidance
- Serica remains on track to deliver production rates of c.65,000 boepd following completion of the Spirit Energy transaction
- The acquisition of assets from Spirit Energy is now set to complete on 1 October 2026, resulting in revised production guidance for 2026 of above 40,000 boepd (previously: significantly above 40,000 boepd)
- Capital expenditure guidance of $175 to $195 million unchanged
- Opex guidance of $380-400 million, excluding $65 million of Lancaster spend, unchanged
- Post-tax CFFO guidance is impacted by the later completion of the Spirit Energy acquisition and is therefore revised to $450-475 million, consistent with current forward curve pricing
- Work is progressing on the move from the AIM to the Main Market of the London Stock Exchange, remains on track to complete in 2026
Source: Serica Energy
