Serica forecasts production hike in 2025
By Abigail Townsend
Date: Tuesday 21 Jan 2025
(Sharecast News) - North Sea oil and gas developer Serica Energy flagged a "promising" 2025 on Tuesday, including a significant hike in production.
Updating on trading, the Aim-listed firm said increased asset reliability and production from new wells would boost annual production to around 40,000 barrels of oil equivalent per day in 2025, with a broadly even mix of oil and gas.
That compares to production of 34,600 boepd in 2024.
Chris Cox, chief executive, said: "The outlook for 2025 is promising, with ongoing work to increase asset reliability and further positive results from the Triton drilling programme expected to boost production and help deliver material free cash flow.
"We expect substantial cash generation in 2025 to allow us to continue delivering material direct returns to our shareholders, with simultaneously continuing investment in our portfolio to unlock further value."
As at 1230 GMT, shares in Serica were up 1% at 153.82p.
Serica added that production would be weighted to the first half of 2025. In the third quarter, both the Bruce Hub and Triton FPSO (floating production, storage and operation) in the North Sea are due to be offline for 12 and 45 days respectively, for maintenance.
Output at the Triton FPSO was affected in 2024 due to an outage.
Full-year revenues for 2024 are set to come at $726m, compared to $920m in 2023. As at the year end, cash stood at $148m and net debt at $71m. Serica is due to post full-year results in April.
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