Serica Energy Shares Jump: Bolstered by Cash Position Despite Production Dip

Serica Energy (LON:SQZ) shares rose over 8% to 170p on Tuesday after the UK North Sea-focused producer reported resilient financials despite a significant drop in output in the first half of 2025.

Production fell to 24,700 barrels of oil equivalent per day (boepd), down from 43,700 boepd a year earlier, following extended downtime at the Triton FPSO.

However, CEO Chris Cox said, “Serica has felt like a coiled spring in the first half of 2025,” noting “a creditable financial performance despite the downtime.”

Revenues dropped to $305 million from $462 million, and the company posted a loss after tax of $43 million versus an $82 million profit a year ago.

Even so, Serica ended the period with a stronger cash position, rising to $174 million from $148 million at year-end 2024, aided by a $71 million tax refund. Net debt fell by $26 million to $57 million.

The company expects a material increase in production in the second half of 2025 as Triton returns to service and new wells come online. Full-year production is guided at 33,000 to 35,000 boepd.

Operationally, Serica completed a five-well campaign at Triton ahead of schedule and under budget. One of the new wells, Belinda BE01, tested at 7,500 boepd.

Meanwhile, work is said to be progressing on a planned move to the Main Market of the London Stock Exchange, expected in early Q4 2025.

The stock has now gained nearly 24% since the start of the year.

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