Serica Energy announced an increase in pretax profit for the first half of the year, benefiting from a gain on an acquisition. However, the company also reported a decline in revenue and tightened its production guidance for 2023.
The company’s pretax profit rose to £298.3 million from £194.5 million in the same period last year. This increase was primarily due to a gain of £139.6 million from the acquisition of Tailwind. On the other hand, revenue decreased to £340.6 million from £353.5 million. This decline was attributed to lower realized pricing for gas, although it was partially offset by new revenue streams from the Tailwind portfolio, which is primarily oil-based.
Serica Energy adjusted its full-year production guidance to a range of 40,000-45,000 barrels of oil equivalent per day. This revision was made due to slower-than-expected ramp-up of production from the Bruce and Triton hubs following planned summer shutdowns. The company had originally projected a range of 40,000-47,000 barrels per day.
Despite the lowered production guidance, Serica Energy expects continuous well and drilling activity across the Bruce and Triton hubs over the next eighteen months.
The company declared an interim dividend of 9 pence per share, an increase from the previous dividend of 8 pence.
Source: WSJ (Joe Hoppe)