Serica Energy (LSE:SQZ) reported a sharp rebound in November production, averaging more than 50,000 boepd and underscoring the strength of its asset base. The company expects output to climb further once its acquisition of Prax Upstream is completed and regular liftings from Triton resume. Serica continues to pursue a growth strategy built on targeted investment and M&A activity. Although the latest UK Budget did not introduce incentives for North Sea investment, Serica now has a clear view of the prevailing fiscal and regulatory landscape, allowing management to stay focused on value creation. Completion of the Prax Upstream deal is anticipated by mid-December, bringing Lancaster production into the portfolio, and the company is actively evaluating additional M&A opportunities while progressing several organic growth projects.
Serica’s outlook reflects a solid financial foundation and strong liquidity, offset by concerns around margin pressure and uneven revenue performance. Technical indicators suggest the shares may be oversold, while commentary from the latest earnings call supports a constructive long-term narrative despite near-term operational challenges.
More about Serica Energy
Serica Energy is an independent UK oil and gas producer with a broad portfolio of assets across the UK Continental Shelf. The company supplies roughly 5% of the UK’s natural gas and has invested more than £1 billion into the domestic supply chain since 2020. Serica’s production is balanced between oil and gas, with major contributors including the Bruce, Keith, and Rhum fields in the Northern North Sea and multiple fields tied into the Triton FPSO in the Central North Sea.
Leave a Reply