Serica Energy (SQZ)

Sector:

Energy Producers

Index:

FTSE AIM 100

123.00p
   
  • Change Today:
    -3.20p
  • 52 Week High: 132.00
  • 52 Week Low: 92.70
  • Currency: UK Pounds
  • Shares Issued: 268.09m
  • Volume: 289,181
  • Market Cap: £329.75m
  • RiskGrade: 160

Serica Energy profits plunge in tough year for sector

By Josh White

Date: Thursday 15 Apr 2021

LONDON (ShareCast) - (Sharecast News) - Upstream oil and gas company Serica Energy reported group profit before tax of £12.5m in its 2020 results on Thursday, plunging from £108.8m year-on-year, which it put down to low commodity prices and the Bruce caisson shut-in.
The AIM-traded firm reported average net production of 23,800 barrels of oil equivalent per day, down from 30,000 barrels per day in 2019, with the reduction die to caisson repairs in the first half, and other field maintenance work.

Cash flow from operations fell to £44.1m from £137.1m year-on-year, while capital expenditure increased to £26.6m from £5.3m.

The company paid a maiden 3p per share dividend in July, totalling £8m.

Closing cash and cash equivalents totalled £89.3m on 31 December, down from £101.8m 12 months earlier, after capital expenditure and the dividend payment, with the firm reporting no debt.

Its board said its resource base was reinforced as group production of around 8.1 million barrels of oil equivalent for the year was largely offset by a 12% increase in oil and gas reserves, leaving year-end reserves of 61 million barrels of oil equivalent, compared to 62.3 million barrels at the end of 2019.

"We are reporting solid results after a challenging year and a severe industry downturn," said chief executive officer Mitch Flegg.

"Despite the many obstacles 2020 presented, Serica has continued to strengthen its financial and operational foundations and also to deliver returns to its shareholders.

"Covid-19 caused disruption to global markets and threatened operations during 2020 but Serica responded rapidly to protect its personnel and ensure continuing supplies of oil and gas into the British market."

Flegg said the impact of the "substantial fall" in commodity prices during the year, as well as a 45-day shut-in of BKR production in the first half to repair a damaged caisson on the Bruce platform, was mitigated by the "flexible structure" of the BKR net cash flow sharing arrangements and the group's gas price hedging programme.

"This financial and operational resilience enables the recommendation of an increased dividend of 3.5p per share."

The R3 workover was now nearing completion, Flegg said, despite a series of technical challenges and periodic severe weather throughout the campaign, with the Columbus development well spudded in mid-March.

"These projects are expected to boost production during the second half and the fourth quarter respectively, and we continue to actively pursue merger and acquisition opportunities that can broaden our asset base and add further value for our stakeholders."

At 0930 BST, shares in Serica Energy were down 0.99% at 119.6p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Serica Energy Market Data

Currency UK Pounds
Share Price 123.00p
Change Today -3.20p
% Change -2.54 %
52 Week High 132.00
52 Week Low 92.70
Volume 289,181
Shares Issued 268.09m
Market Cap £329.75m
RiskGrade 160

Serica Energy Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
88.72% above the market average88.72% above the market average88.72% above the market average88.72% above the market average88.72% above the market average
66.27% below the sector average66.27% below the sector average66.27% below the sector average66.27% below the sector average66.27% below the sector average
Price Trend
23.13% below the market average23.13% below the market average23.13% below the market average23.13% below the market average23.13% below the market average
12.09% above the sector average12.09% above the sector average12.09% above the sector average12.09% above the sector average12.09% above the sector average
Income
1.50% above the market average1.50% above the market average1.50% above the market average1.50% above the market average1.50% above the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average
Growth
16.24% above the market average16.24% above the market average16.24% above the market average16.24% above the market average16.24% above the market average
18.52% below the sector average18.52% below the sector average18.52% below the sector average18.52% below the sector average18.52% below the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Serica Energy Dividends

  Latest Previous
  Final Final
Ex-Div 24-Jun-21 25-Jun-20
Paid 23-Jul-21 24-Jul-20
Amount 3.50p 3.00p

Trades for 18-Jun-2021

Time Volume / Share Price
16:35 86,720 @ 123.00p
16:29 2,025 @ 124.80p
16:28 2,008 @ 124.80p
16:26 141 @ 125.00p
16:25 72 @ 125.00p

Serica Energy Key Personnel

CEO Mitchell Robert Flegg

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