Analysts have raised their price target for Serica Energy from £2.38 to £2.41. They cited slightly higher projected revenue growth and a modest adjustment in the discount rate as key factors supporting the increase.
What's in the News
- An issue with the flare system on the Triton FPSO resulted in a temporary suspension of production on 30 September; production is expected to resume soon, but at significantly reduced rates until the problem is resolved (Key Developments).
- Serica now anticipates production to fall below the previously communicated guidance range of 29,000 to 32,000 boepd due to operational disruptions at the Triton facility (Key Developments).
- The company reaffirmed full year 2025 production guidance at 33,000 to 35,000 boepd, after revising the upper end from 37,000 boepd earlier (Key Developments).
- Serica Energy expects to complete the acquisition of Prax Upstream by year-end and continues to actively pursue additional merger and acquisition opportunities to grow shareholder value, supported by significant tax loss carryforwards (Key Developments).
- Ramping up of production continues from newly drilled and existing wells at the Triton Hub, with further increases projected as more wells are brought online in the coming months (Key Developments).
Valuation Changes
- Fair Value increased slightly from £2.38 to £2.41 following updated projections.
- Discount Rate rose modestly from 7.04% to 7.10%.
- Revenue Growth upgraded from 11.65% to 12.35% based on recent performance expectations.
- Net Profit Margin declined marginally from 6.52% to 6.40%.
- Future P/E edged up from 31.32x to 31.58x.
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