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Serica Energy PLC on Thursday called the UK government budget a ‘missed opportunity’ for investment in North Sea energy, as it reported lower average production in the year to date. The London-based oil and gas producer posted a 32% yearly decline in its output for the nine months to the end of September. Average daily production was 25,700 barrels of oil equivalent, compared to 37,800 barrels a year earlier. Serica also received a lower average realised Brent price of $70 per barrel over the nine-month period, down from $76. Production edged up 5.8% on-year during the third quarter, averaging 27,500 barrels a day versus the prior year’s 26,000 barrels. Quarterly revenue slipped to $134 million from $139 million, however. Serica stressed that production had ‘rebounded’ to an average of 50,300 barrels per day in November, before the planned shutdown of its Triton vessel, which began on Sunday and is due to end mid-December. It sees the full-year average output ranging from 27,000 to 28,000 barrels per day, down from 34,600 barrels in 2024. Serica shares were down 5.7% to 169.90 pence midday Thursday in London, having gained 31% in the past year. Capital expenditure remains in line with its £250 million target for 2025, Serica said, but operating expenses are forecast 10% above prior guidance of $330 million, which it attributed partly to currency headwinds. Its cash balance amounted to $41 million as of September 30, down from $174 million at the end of June. Serica continues to plan its move to the London Main Market from junior venue AIM, once it has released annual results. Additionally, it expects to acquire the Lancaster field after completing the purchase of Prax Upstream, thereby boosting performance in the short-term. Chief Executive Chris Cox added: ‘The resumption of regular liftings from Triton will return us to significant and sustainable cash generation going forward.’ The company on Thursday noted that the UK budget is not expected to hurt its current oil and gas portfolio. In the budget, the government confirmed the windfall tax will remain in place until March 2030, unless oil and gas prices fall below a certain level before then. CEO Cox commented: ‘While the budget announcements yesterday were a missed opportunity to kick-start investment across the UK North Sea, we now have greater clarity about the fiscal and regulatory regimes in which our investment decisions will be made.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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