Analysts have raised their price target for Serica Energy from £2.26 to £2.38 per share. They cite modest improvements to revenue growth forecasts and a slightly lower projected discount rate as key drivers for the updated valuation.
What's in the News
- Serica Energy is actively seeking mergers and acquisitions, with the planned acquisition of Prax Upstream expected to complete before year-end. Two additional deals are targeted for the first half of 2026. The company continues to pursue opportunities to grow shareholder value through further M&A alongside organic projects (Investor Presentation).
- First oil lifting from the Triton FPSO since the restart is underway, with production ramping up in line with plans. Additional wells from several fields, including Bittern, Evelyn, Gannet E, and Guillemot West, have been brought online. More wells are scheduled to come onstream soon (Company Announcement).
- Serica Energy has re-iterated its production guidance for 2025, maintaining an expected range of 33,000 to 35,000 barrels of oil equivalent per day (Company Announcement).
- Recent production ramp-up at Triton FPSO has been slower than scheduled due to operational challenges. Remedial work has now been completed and new wells are anticipated to boost output (Company Announcement).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from £2.26 to £2.38 per share.
- Discount Rate has fallen modestly, changing from 7.20% to 7.04%.
- Revenue Growth expectations have increased from 10.8% to 11.7%.
- Net Profit Margin is projected to decrease slightly, from 6.9% to 6.5%.
- Future P/E ratio has increased from 28.8x to 31.3x.
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