UK-based oil and gas company, Serica Energy, has announced an increase in first-half pretax profit for 2023. The company reported a rise in pretax profit from GBP194.5 million to GBP298.3 million, attributed to an accounting gain of GBP139.6 million from the Tailwind transaction. Despite this positive development, Serica Energy experienced a decline in revenue, which decreased from GBP353.5 million to GBP340.6 million. The reduction in revenue is primarily a result of lower realized pricing for gas. However, the company noted new revenue streams from the recently acquired mostly oil-based Tailwind portfolio.
In light of slower-than-expected production following planned summer shutdowns at the Bruce and Triton hubs, Serica Energy adjusted its full-year production guidance. The company lowered its 2023 production forecast to 40,000-45,000 barrels of oil equivalent per day from the previously stated range of 40,000-47,000 barrels per day. Despite this revision, Serica Energy anticipates consistent well and drilling activity over the next eighteen months at the Bruce and Triton hubs.
Additionally, Serica Energy announced an increased interim dividend of 9 pence per share, up from 8 pence.
At 0841 GMT, shares of Serica Energy were down 7.5% at 247.8 pence.
