LONDON (ShareCast) - (Sharecast News) - Serica Energy reported a first-half loss on Tuesday, as production was hit by an extended shutdown at its Triton FPSO facility, but said it expected materially higher output and cash generation in the second half, with production levels returning to around 50,000 barrels of oil equivalent per day.
The AIM-traded company posted a net loss of $43m for the six months ended 30 June, compared to an $82m profit a year earlier.

Revenue fell 34% to $305m due to lower production, which averaged 24,700 daily equivalent barrels in the first six months of 2025, down from 43,700 per day in the same period last year.

The Triton FPSO was shut from late January through the end of the period.

"Serica has felt like a coiled spring in the first half of 2025," said chief executive Chris Cox.

"The resilience of our gas production from the Bruce Hub and strong first-quarter gas prices ... helped deliver a creditable financial performance despite the downtime at Triton."

He added that with ramp-up underway at Triton and new wells coming online, production should soon reach 50,000 barrels of oil equivalent per day.

Despite the drop in revenue, cash flow remained positive, with $14m in free cash flow generated and cash balances rising to $174m, up from $148m at year-end 2024.

A $71m tax refund in June helped offset $138m in capital expenditure, while net debt was reduced by $26m to $57m.

EBITDAX fell to $118m from $279m in the prior-year period.

Average realised oil and gas prices were $70 per barrel and 96p per therm, respectively.

Serica declared an interim dividend of 6p per share, down from 9p a year earlier, in line with a previously-announced rebalancing of the dividend profile.

The payout would be made on 20 November to shareholders on the register as of 24 October.

Looking ahead, the company reaffirmed full-year production guidance of 33,000 to 35,000 daily equivalent barrels, and maintained opex guidance of around $330m.

Capital expenditure was expected to be at the top end of the $220m to $250m range due to accelerated work on the Belinda field and currency effects.

Serica said production in July had already increased to 21,600 barrels of oil equivalent per day, helped by well optimisation at Bruce and the resumption of output at Keith.

It also highlighted the successful completion of the five-well Triton drilling programme, which came in under budget and ahead of schedule.

The company said it expected Belinda to come onstream in early 2026 and is progressing plans for further drilling at Bruce and Kyle.

It added that it was continuing to explore merger and acquisition opportunities focused on the UK North Sea, confirming that it aimed to move its listing to the main market early in the fourth quarter.

At 1300 BST, shares in Serica Energy were up 7% at 168.2p.

Reporting by Josh White for Sharecast.com.

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