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.”

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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.

Analyst Summary: Bull and Bear Cases