Serica Energy Faces Profit Drop Amid Tax Charge and Production Obstacles

Serica Energy, a major oil and gas company, reported a decline in profits for the first half of 2024 due to a significant tax charge of $106 million. The company's production was also affected by an unplanned shutdown at its Triton Hub. Despite these setbacks, Serica continues to seek expansion through acquisitions and investments.

Serica Energy, a renowned oil and gas company, announced a lower profit for the first half of 2024, attributing the decline to a $106 million tax charge.

The company's production capabilities were hindered by an unplanned shutdown at its Triton Hub in the UK's Central North Sea, leading to a daily production drop to 43,700 barrels of oil equivalent per day (boepd) from 49,350 boepd in the previous year. Consequently, Serica's full-year average production is expected to be at the lower end of its forecasted range of 41-46,000 boepd. Full-year capital expenditure is projected to align with expectations at approximately $260 million pre-tax.

Serica has aggressively expanded its production through acquisitions and investments over the past few years. The company remains focused on pursuing cash-generative M&A opportunities within the UK and North Sea, as well as other regions. In late 2022, Serica acquired Tailwind Energy Investments for 644 million pounds ($842.87 million), involving energy trader Mercuria as a significant investor to enhance production capacity. For the six-month period ending June 30, Serica reported a post-tax profit of $82.5 million, compared to $98.5 million a year prior.

(With inputs from agencies.)