Declared Dividend • May 20
Final dividend of UK£0.10 announced Shareholders will receive a dividend of UK£0.10. Ex-date: 25th June 2026 Payment date: 24th July 2026 Dividend yield will be 5.1%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 34% per year over the past 6 years. However, payments have been volatile during that time. Announcement • Apr 27
Serica Energy plc, Annual General Meeting, May 21, 2026 Serica Energy plc, Annual General Meeting, May 21, 2026. Location: the offices of ashurst llp, fruit and wool exchange, 1 duval square, e1 6pw, london United Kingdom Announcement • Mar 28
Serica Energy plc Provides Production Guidance for the Year 2026 Serica Energy plc provides production guidance for the year 2026. For the period, the company expects Unchanged guidance for 2026 production of significantly over 40,000 boepd. Announcement • Dec 17
Serica Energy plc (AIM:SQZ) entered into a sale and purchase agreement to acquire Portfolio of Southern North Sea Assets from Spirit Energy Limited. Serica Energy plc (AIM:SQZ) entered into a sale and purchase agreement to acquire Portfolio of Southern North Sea Assets from Spirit Energy Limited for £60.5 million on December 16, 2025. An upfront cash consideration of £57 million will be paid on completion. The terms of the transaction also include provision for two potential further cash payments by Serica: (1) £2.5 million contingent on sanction of the drilling of an additional development well on Cygnus; and (2) £1 million contingent on the drilling of, and subsequent first production from, an infill well on Clipper South. The acquired assets comprise a 15% non-operated working interest in the Cygnus field; a 25% non-operated working interest in Clipper South; operated positions across various assets in the Greater Markham Area; and further operated and non-operated interests in gas fields across the Southern North Sea, being Eris (54% operated working interest), Ceres (90% operated working interest), and Galleon (8.4% non-operated working interest). Following completion, the seller will retain decommissioning liabilities on the operated assets, expected to constitute over 75% of the total estimated decommissioning liability.
The transaction is subject to approval by regulatory board / committee. The expected completion of the transaction is in H2 2026. The transaction is immediately cash generative.
Peel Hunt LLP acted as financial advisor for Serica Energy plc. N.M. Rothschild & Sons Limited acted as financial advisor for Serica Energy plc. Announcement • Nov 27
Serica Energy plc Provides Production Guidance for the Full Year 2025 Serica Energy plc provided production guidance for the full year 2025. For the year, the company expects production for Fiscal Year 2025 to average 27,000 boepd to 28,000 boepd. Announcement • Oct 22
Serica Energy plc Announces Update on Production at Triton FPSO Serica Energy plc announced that following the announcement on 8 October that an issue with the flare system on the Triton FPSO resulted in a temporary suspension of production, production resumed in line with expectations at a limited level shortly after that date. Since then, the operator has ramped up production, which has now reached a rate of over 25,000 boepd net to Serica. Announcement • Oct 01
Serica Energy plc (AIM:SQZ) signed a sale and purchase agreement to acquire Prax Upstream Limited from Prax Global Finance I PLC for £14.5 million. Serica Energy plc (AIM:SQZ) signed a sale and purchase agreement to acquire Prax Upstream Limited from Prax Global Finance I PLC for £14.5 million on September 30, 2025. The transaction is subject to approval by regulatory board / committee. Completion of the Acquisition is expected in Q4 2025. Richard Crichton of Peel Hunt LLP acted as financial advisor for Serica Energy plc. N.M. Rothschild & Sons Limited acted as financial advisor for Serica Energy plc. Alastair Young, James Maltby, Philip Harle, Freddie Doust, Adela Komorowska of Hogan Lovells act as legal advisor for Prax Global Finance I PLC. Announcement • Jun 30
Serica Energy plc Announces Restart of Production Operations Serica Energy plc announced that, having already completed repairs, scheduled maintenance work at the Triton FPSO has now also been completed and the process to restart production operations is underway. Production will commence shortly and ramp up as each field tied back to the Triton FPSO is brought back onstream following the normal post maintenance start-up schedule, with a stable production level expected to be reached during July. The Triton FPSO was delivering 25,000 boepd net to Serica immediately prior to the shutdown. This figure has the potential to be boosted through the addition of production from two new wells, both of whichwere delivered on schedule and under budget during the Triton downtime, the W7z well on the Guillemot North West field (Serica: 10%) and the EV02 well on the Evelyn field (Serica: 100%). During the shutdown, extensive repairs to the inert gas marine system were completed, with over 100 components on the system either replaced or refurbished. Topside modifications were made in readiness to accept the start of production from the Belinda field expected in early 2026, significant safety critical maintenance work was also undertaken on the firewater system, and valves and sections of pipework across the FPSO were replaced. With work now complete, the normal start-up sequence has begun. Announcement • Apr 24
Serica Energy plc, Annual General Meeting, May 22, 2025 Serica Energy plc, Annual General Meeting, May 22, 2025. Location: the offices of ashurst llp, fruit and wool exchange, 1 duval square, e1 6pw, london United Kingdom Announcement • Mar 07
Serica Energy in Talks for A Potential Merger with Enquest Serica Energy Plc (LON: SQZ) said on March 7, 2025 that it is in discussions for a potential merger with local sector player Enquest Plc (LON:ENQ). Serica’s shares were trading up 4.23% at 125.60 pence as of 1108 GMT, following the announcement, whereas Enquest saw its stock rise by 14.68% to 12.50 pence. The proposed transaction would be structured as an all-share offer by Enquest, with Serica shareholders receiving a return of capital. Besides, Serica's investors would own the majority of shares in the newly combined entity, which would continue to be listed on the London Stock Exchange, according to Serica’s statement. Under the UK takeover rules, Enquest has until April 4 to either make a formal offer or withdraw from the discussions. Announcement • Feb 18
Serica Energy plc Announces Update on Triton FPSO Serica Energy plc announced that, as a result of issues resulting from Storm Éowyn, production from the Triton FPSO has been suspended. During the storm on 24 January, 2025 sea spray triggered the fire and gas detection system, causing an automatic production shutdown. Following an initially successful restart on 28 January, it was established that the storm had caused minor damage to one of the cargo tanks which required repair. While preparing to conduct the necessary repairs, Dana Petroleum ('Dana') identified an integrity issue with a coupling in the inert gas line required for purging the tanks prior to carrying out the repairs. Triton has remained offline subsequently pending identification of the root cause of the issue and the best means of resolving it. Serica is supporting Dana in this process including the secondment of its own representative into the operator's team dealing with this issue. They currently expect that these safety critical repairs will result in the recommencement of production in mid-to-late March. The extent of annual maintenance work in the summer, currently scheduled for 40 days, is also under review. Work continues in parallel on the second gas compressor which, as previously notified, is on track to be available by the end of first quarter of 2025. The Triton JV has recently received the final draft of a comprehensive third-party engineering study, commissioned by the JV to consolidate prior work, to assess the scope and costs associated with extending the life of the Triton FPSO to a range of Cessation of Production dates up to 2040. The report has confirmed that, subject to the continuation of the programme of maintenance and upgrades, the FPSO has the potential to continue producing well into the next decade. Announcement • Jan 21
Serica Energy plc to Report Fiscal Year 2024 Results on Apr 01, 2025 Serica Energy plc announced that they will report fiscal year 2024 results at 8:00 AM, GMT Standard Time on Apr 01, 2025 Announcement • Dec 14
Serica Energy plc (AIM:SQZ) has signed an agreement to acquire Parkmead (E&P) Limited from The Parkmead Group plc (AIM:PMG) for £14 million. Serica Energy plc (AIM:SQZ) has signed an agreement to acquire Parkmead (E&P) Limited from The Parkmead Group plc (AIM:PMG) for £14 million on December 12, 2024. An Initial consideration is of £5 million and additional deferred consideration of £9 million will be paid in stages over the next three years, as well as contingent payments linked to certain development milestones payable on receipt by Serica of approval by the North Sea Transition Authority (‘NSTA’) for a field development plan (‘FDP’) relating to Skerryvore or Fynn Beauly. The expected completion of the transaction is in first half of 2025. Announcement • Nov 27
Serica Energy plc Provides Production Guidance for the Full Year 2024 Serica Energy plc provided production guidance for the full year 2024. Full year production is expected to be around 37,000 boe/d. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to €1.51, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 5x in the Oil and Gas industry in Europe. Total loss to shareholders of 16% over the past three years. Upcoming Dividend • Oct 17
Upcoming dividend of UK£0.09 per share Eligible shareholders must have bought the stock before 24 October 2024. Payment date: 21 November 2024. Payout ratio is on the higher end at 100% but the company is not cash flow positive. Trailing yield: 16%. Within top quartile of German dividend payers (4.8%). Higher than average of industry peers (2.6%). Announcement • Oct 04
Serica Energy plc Updates on Bittern B6 Well Production Serica Energy plc confirmed that the B6 well on the Bittern field which commenced initial flowback to the Triton FPSO on 11 September, is now producing at a stable rate. The well is producing oil and gas at a combined gross rate of around 8,000 boepd, a total of around 5,200 boepd net to Serica. Drilling and completion activities on the Gannet GE-05 well have now concluded. Data collected during drilling have shown encouraging results, and production is expected to commence around the start of November. The COSL Innovator rig is now moving to drill the next well in the campaign, on the Guillemot NW field. Total Serica portfolio production is currently over 50,000 boepd, a level that if retained would result in the Company finishing 2024 in line with the updated guidance given at the company's half-year results on 10 September. Valuation Update With 7 Day Price Move • Sep 17
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to €1.58, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Oil and Gas industry in Europe. Total loss to shareholders of 12% over the past three years. Declared Dividend • Sep 12
First half dividend of UK£0.09 announced Shareholders will receive a dividend of UK£0.09. Ex-date: 24th October 2024 Payment date: 21st November 2024 Dividend yield will be 18%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is not covered by earnings (100% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 67% per year over the past 4 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 11% to bring the payout ratio under control. However, EPS is expected to decline by 17% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Sep 11
First half 2024 earnings released: EPS: US$0.21 (vs US$0.66 in 1H 2023) First half 2024 results: EPS: US$0.21 (down from US$0.66 in 1H 2023). Revenue: US$461.6m (up 8.2% from 1H 2023). Net income: US$82.5m (down 63% from 1H 2023). Profit margin: 18% (down from 52% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is expected to fall by 1.9% p.a. on average during the next 3 years compared to a 1.2% decline forecast for the Oil and Gas industry in Europe. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Aug 29
Serica Energy plc to Report First Half, 2024 Results on Sep 10, 2024 Serica Energy plc announced that they will report first half, 2024 results on Sep 10, 2024 Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €1.59, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Oil and Gas industry in Europe. Total returns to shareholders of 20% over the past three years. Recent Insider Transactions • Jul 05
Insider recently bought €201k worth of stock On the 2nd of July, Christopher Cox bought around 125k shares on-market at roughly €1.60 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought €575k more in shares than they have sold in the last 12 months. Announcement • Jun 27
Serica Energy plc Provides Production Guidance for the Year 2024 Serica Energy plc provided production guidance for the year 2024. The production guidance range for 2024 is updated to 41,000 - 46,000 boe/d. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €1.96, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Oil and Gas industry in Europe. Total returns to shareholders of 57% over the past three years. Announcement • Jun 06
Serica Energy plc, Annual General Meeting, Jun 27, 2024 Serica Energy plc, Annual General Meeting, Jun 27, 2024. Location: the offices of peel hunt llp, 100 liverpool street, ec2m 2at, london United Kingdom New Risk • May 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Dividend is not well covered by cash flows (458% cash payout ratio). Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Announcement • May 15
Serica Energy plc Announces Executive Changes, Effective 1 July 2024 Serica Energy plc announced the appointment of Chris Cox as Chief Executive Officer. This will take effect on 1 July 2024, with David Latin (Chairman of Serica) ceasing his temporary role as Interim CEO at the same time. Chris Cox has over forty years experience in oil and gas in a wide range of roles with Majors and Independents. For the last two decades he has been leading complex multi-asset and multi-country businesses including as CEO of Spirit Energy, Interim CEO at Capricorn Energy and Chairman of Kellas Midstream. Chris has experience as a non-executive director of both private equity and publicly listed companies, most recently with Nostrum Oil and Gas. Chris holds a BSc in Petroleum Engineering from Imperial College, London. Christopher Martin Cox (aged 63), Current Directorships: Nostrum Oil & Gas plc; Past Directorships (within the last 5 years): Curium Resources Ltd; Curium Energy Consultants Limited; Curium Energy Ltd; Oxomo Tequila Ltd; Capricorn Egypt (Holding) Limited; Capricorn Côte d'Ivoire Limited; Capricorn Energy Investments Limited; Capricorn Low Carbon Solutions Limited; Capricorn Production II Limited; Capricorn Energy Holdings Limited; Capricorn Egypt Limited; Capricorn Oil Limited; Capricorn Energy UK Limited; Capricorn Mauritania Limited; Capricorn Senegal (Holding) Limited; Capricorn Offshore Exploration Limited; Capricorn Production (Holdings) Limited; Cairn UK Holdings Limited; Capricorn Resources Management Limited; Capricorn Production I Limited; Capricorn Americas Limited; Capricorn Petrololeum Limited; Agora Oil and Gas (UK) Limited; Capricorn Senegal Limited; Capricorn Energy plc; Kellas Group Holdings Limited. Declared Dividend • Apr 26
Final dividend of UK£0.14 announced Shareholders will receive a dividend of UK£0.14. Ex-date: 27th June 2024 Payment date: 24th July 2024 Dividend yield will be 10%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is covered by earnings (81% earnings payout ratio) but not covered by cash flows (458% cash payout ratio). The dividend has increased by an average of 66% per year over the past 4 years. However, payments have been volatile during that time. EPS is expected to grow by 45% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 25
Full year 2023 earnings released: EPS: UK£0.29 (vs UK£0.65 in FY 2022) Full year 2023 results: EPS: UK£0.29 (down from UK£0.65 in FY 2022). Revenue: UK£632.6m (down 22% from FY 2022). Net income: UK£103.0m (down 42% from FY 2022). Profit margin: 16% (down from 22% in FY 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 1.3% growth forecast for the Oil and Gas industry in Germany. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Announcement • Apr 17
Serica Energy plc to Report Fiscal Year 2023 Results on Apr 24, 2024 Serica Energy plc announced that they will report fiscal year 2023 results on Apr 24, 2024 Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €2.36, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Oil and Gas industry in Europe. Total returns to shareholders of 112% over the past three years. Announcement • Mar 07
Serica Energy plc Provides Production Guidance for the Year 2024 Serica Energy plc provided production guidance for the year 2024. For the period, Company expects production at 41,000 to 48,000 boe per day. Recent Insider Transactions • Feb 09
CEO & Director recently bought €167k worth of stock On the 7th of February, Mitchell Flegg bought around 75k shares on-market at roughly €2.23 per share. This transaction amounted to 24% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Mitchell's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to €2.10, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 6x in the Oil and Gas industry in Europe. Total returns to shareholders of 91% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €3.62 per share. Announcement • Feb 05
Serica Energy plc Provides Production Guidance for the Full Year 2024 Serica Energy plc provided production guidance for the full year 2024. The production guidance for 2024 is 41,000 to 48,000 boe/d (net to Serica). This represents an increase on pro-forma production for the combined Serica and Tailwind portfolios in 2023. Announcement • Nov 21
Serica Energy plc Announces Board Changes Serica Energy plc announced that Andy Bell, Chief Financial Officer, has informed the board of his intention to step down from his role in the New Year when he will be replaced by Martin Copeland. Martin is currently a Principal at energy advisory firm Kirk Lovegrove & Co. Ltd. Martin has worked in oil & gas financing and advisory roles across a number of investment banks for more than 30 years. Some of his recent North Sea experience includes advising Premier Oil on their reverse takeover by Chrysaor to create Harbour Energy, advising JX Nippon on the sale of their UKCS business to Neo Energy and advising Tailwind Energy on their sale to Serica. Martin Francis David Copeland (aged 54): Mr. Copeland does not hold any ordinary shares nor options over ordinary shares in the Company. Current Directorships: Ashford Community Fibre Optic C.I.C. and The Chace Freehold Company Limited. Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to €2.34, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 6x in the Oil and Gas industry in Europe. Total returns to shareholders of 134% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €4.42 per share. Upcoming Dividend • Oct 19
Upcoming dividend of UK£0.09 per share at 11% yield Eligible shareholders must have bought the stock before 26 October 2023. Payment date: 23 November 2023. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 11%. Within top quartile of German dividend payers (5.0%). Higher than average of industry peers (2.6%). Reported Earnings • Sep 20
First half 2023 earnings released: EPS: UK£0.53 (vs UK£0.43 in 1H 2022) First half 2023 results: EPS: UK£0.53 (up from UK£0.43 in 1H 2022). Revenue: UK£340.6m (down 3.6% from 1H 2022). Net income: UK£175.5m (up 50% from 1H 2022). Profit margin: 52% (up from 33% in 1H 2022). Revenue is expected to decline by 5.5% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Germany are expected to grow by 1.7%. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Announcement • Sep 19
Serica Energy plc Announces Interim Dividend Payable on 23 November 2023 Serica Energy plc announced Interim dividend of 9 pence per share (2022: 8 pence per share) announced following the full year dividend of 22 pence per share for 2022. The interim dividend is payable on 23 November to shareholders registered on 27 October 2023 with an ex-dividend date of 26 October 2023. Announcement • Sep 09
Serica Energy plc to Report First Half, 2023 Results on Sep 19, 2023 Serica Energy plc announced that they will report first half, 2023 results on Sep 19, 2023 New Risk • Aug 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 9.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.2% average weekly change). Earnings are forecast to decline by an average of 12% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (41% increase in shares outstanding). Announcement • Jul 18
Serica Energy plc Announces Board Changes Serica Energy plc announced that Kaat Van Hecke and Sian Lloyd Rees have each accepted an invitation to join Serica's Board as Independent Non-Executive Directors with immediate effect.Upon joining the Board, Kaat will be appointed to chair the HSE Committee and the Reserves Committee, and Sian will be joining the Remuneration and Sustainability Committees. After the AGM on 29 June 2023 Tony Craven Walker retired and David Latin took over as Chairman. The Company also announces that Trevor Garlick is stepping down as an Independent Non-Executive Director with effect from 17 July 2023. Kaat has over 25 years of experience in the petrochemical and upstream oil and gas business. She has held a variety of positions with ExxonMobil, Shell, OMV, and Nostrum Oil & Gas in Europe, Nigeria, Russia and Kazakhstan. Kaat is an experienced Non-Executive Director who currently holds Independent Non-Executive Director positions and chairs Board Committees at Glover Gas & Power B.V/Axxela Limited, the largest private sector natural gas distributor in West Africa, and at Trinity Exploration & Production Plc which is focussed on Trinidad and Tobago. Sian has over 30 years experience in Oil & Gas, IT and renewable Energy industries. Her career includes roles at Halliburton Corporation, Oracle Corporation and Aker Group, across multiple geographies. Currently Sian is UK Managing Director for Aker ASA's Mainstream Renewable Power business which is responsible for growing a renewable energy portfolio in offshore wind and hydrogen. She is also a Non-Executive Director and co-chair of OEUK Ltd, a Non-Executive Director for the UKs Net Zero Technology Centre Ltd, and a Non-Executive Director for Aberdeen Harbour Ltd. (Port of Aberdeen). Kaat Van Hecke (aged 51): Current Directorships: Glover Gas & Power B.V. /Axxela Limited; Axxela Funding 1 PLC; Transit Gas Nigeria Limited and Trinity Exploration & Production PLC. Past Directorships (within the last 5 years): Nostrum Oil & Gas PLC and OMV Austria Exploration & Production GmbH. Sian Lloyd Rees (aged 62): Current Directorships: Aker Offshore Wind Limited; Arven Offshore Wind Farm Hold Co Limited; Arven Offshore Wind Farm Limited; Dubh Artach Holdings Limited; Dubh Artach Offshore Wind Limited; Energy Transition Zone Ltd; Net Zero Technology Centre Limited; The UK Offshore Energies Association Limited; UK Mainstream Renewable Power Limited and Aberdeen Harbour Limited. Past Directorships (within the last 5 years): Aberdeen Cyrenians Limited; Aker Engineering Malaysia Ltd; Aker Engineering & Technology Limited; Aker Offshore Partner Limited; Aker Solutions Eame Limited; Aker Solutions Holding Limited; Aker Solutions IP Limited; Aker Solutions Limited and Enovate Systems Limited. Announcement • Jun 29
Serica Energy plc Reaffirms Production Guidance for the Full Year 2023 Serica Energy plc reaffirmed production guidance for the full year 2023. The company announced that, some of the outages have just commenced and some will occur during the second half of the year so full year 2023 production guidance remains unchanged at 40,000 - 47,000 boe/d. Upcoming Dividend • Jun 22
Upcoming dividend of UK£0.14 per share at 12% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 27 July 2023. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 12%. Within top quartile of German dividend payers (4.7%). Higher than average of industry peers (2.3%). Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €2.78, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Oil and Gas industry in Europe. Total returns to shareholders of 119% over the past three years. Announcement • May 31
Serica Energy plc, Annual General Meeting, Jun 29, 2023 Serica Energy plc, Annual General Meeting, Jun 29, 2023, at 11:00 Coordinated Universal Time. Location: Offices of Peel Hunt LLP, 100 Liverpool Street London United Kingdom Board Change • Apr 23
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Executive Director Robert Lawson was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Apr 18
Insider recently bought €113k worth of stock On the 14th of April, Michiel Soeting bought around 42k shares on-market at roughly €2.67 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought €1.8m more in shares than they have sold in the last 12 months. Reported Earnings • Apr 14
Full year 2022 earnings released: EPS: UK£0.65 (vs UK£0.30 in FY 2021) Full year 2022 results: EPS: UK£0.65 (up from UK£0.30 in FY 2021). Revenue: UK£812.4m (up 58% from FY 2021). Net income: UK£177.8m (up 124% from FY 2021). Profit margin: 22% (up from 15% in FY 2021). The increase in margin was driven by higher revenue. Oil sales price Average sales price/bbl: US$80.67 Gas sales price Average sales price/mcf: US$16.32 LNG sales price Average sales price/bbl: US$65.48 Combined production and costs Oil equivalent production: 8.283 MMboe (7.317 MMboe in FY 2021) Average production cost/Boe: US$15.70 (US$12.16/Boe in FY 2021) Revenue is expected to decline by 3.8% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Germany are expected to grow by 3.8%. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Announcement • Jan 28
Serica Energy plc, Annual General Meeting, Jan 27, 2023 Serica Energy plc, Annual General Meeting, Jan 27, 2023. Announcement • Dec 22
Serica Energy plc (AIM:SQZ) entered into an agreement to acquire TAILWIND ENERGY INVESTMENTS LTD from TAILWIND ENERGY HOLDINGS LLP for approximately £370 million. Serica Energy plc (AIM:SQZ) entered into an agreement to acquire TAILWIND ENERGY INVESTMENTS LTD from TAILWIND ENERGY HOLDINGS LLP for approximately £370 million on December 20, 2022. Under the terms of transaction, 111.048124 million shares and £58.7 million cash will be paid. It will also take on Tailwind's £277m debt. Mercuria will end up with a 25.2 pence stake in Serica and have two directors on its board. The deal boosts Serica's North Sea production by 70pc. Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment deteriorated over the past week After last week's 18% share price decline to €2.86, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 4x in the Oil and Gas industry in Europe. Total returns to shareholders of 108% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €5.69 per share. Announcement • Dec 06
Serica Energy plc Provides Operations Update Serica Energy plc provided the following operations update. North Eigg: The North Eigg exploration well 3/24c-6B has been drilled to a total depth of 16,728 feet in the Jurassic Heather formation and initial analysis indicates that, whilst the well has encountered hydrocarbons, commercial quantities have not yet been established. At the well location, the objective sands were thinner than had been prognosed but a total of 16 feet of hydrocarbon-bearing sands were encountered, and these have confirmed the presence of hydrocarbons at a deeper depth than in the adjacent producing Rhum field. A full suite of wireline logging data has been acquired and company's analysis is ongoing. Company aim to determine if a future sidetrack location can be designed to better evaluate the volumes of hydrocarbon in this new discovery. It is company's intention that the well will be suspended pending the results of this further work prior to future potential re-entry and sidetrack. Final well costs will not be known until after the rig is off hire, but it is likely that the net after tax cost of the well to Serica will be around £13 million. Production: Serica production performance in the second half of 2022 continues to benefit from the investment programmes that the company has continually undertaken since the acquisition of interests in Bruce, Keith and Rhum in 2018. Serica's total net production for the period ended November 2022 was 28,977 boe/d. Announcement • Sep 14
Serica Energy plc Provides Update on North Eigg Exploration Well Serica Energy plc provided the following update on the North Eigg exploration well. Drilling operations on the North Eigg exploration well have encountered delays and, following a recent equipment failure and the required mobilisation of a replacement, operations are now expected to take some six weeks longer to complete than the original schedule. Operations had been progressing successfully despite some drilling delays in the top-hole sections. During recent preparations for drilling the third section of the well there was a failure of a vital piece of rig equipment during routine pre-job testing. A replacement has been sourced and planning is underway to transport this to the drilling rig. This will have no impact on the ultimate geological outcome of the well and it is expected that all well costs will benefit from the Investment Allowances available under the recently introduced Energy Profits Levy. Serica's net well cost after tax is anticipated to increase by approx. £3 million as a result of the delays and it is now expected that results from the well will be available in December 2022. Announcement • Sep 07
Serica Energy plc to Report First Half, 2022 Results on Sep 27, 2022 Serica Energy plc announced that they will report first half, 2022 results on Sep 27, 2022 Announcement • Aug 10
Kistos plc (AIM:KIST) cancelled the acquisition of Serica Energy plc (AIM:SQZ). Kistos plc (AIM:KIST) made an offer to acquire Serica Energy plc (AIM:SQZ) for £1 billion on July 12, 2022. Kistos will pay 0.2932 new Kistos shares and cash of £2.46 per share. The offer has been rejected by the Board of Serica Energy on July 12, 2022. The Board of Serica Energy plc confirms that it received a revised non-binding proposal from Kistos on July 22, 2022 regarding a possible cash and share offer for the entire issued and to be issued share capital of Serica (the "Kistos Revised Possible Offer").The Kistos Revised Possible Offer comprises of 0.4000 new Kistos shares per Serica share; plus cash of £2.13 pence per Serica share, consisting of: capital distribution of £0.67 pence per Serica share; and,cash consideration of £1.46 pence per Serica share. The Board of Serica rejected the Revised Combination Terms, with no rationale given nor engagement with the Board of Kistos .Serica’s management had concluded that the new offer ‘significantly’ undervalued the company and was ‘opportunistic’. As a result, it advised shareholders to take no action in regards to the new offer.
James McEwen and Murray Yuill of N M Rothschild & Sons Limited and Richard Crichton, Ross Allister and Michael Nicholson of Peel Hunt LLP acted as financial advisor to Serica Energy. Julian Mylchreest, Geoff Iles, TomMilner and Ben Winstanley of Merrill Lynch International and Richard Morecombe, John Prior and James Sinclair-Ford of Panmure Gordon (UK) Limited acted as financial advisor and Orrick, Herrington & Sutcliffe (Europe) LLP acted as legal advisor to Kistos.
Kistos plc (AIM:KIST) cancelled the acquisition of Serica Energy plc (AIM:SQZ) on August 9, 2022. Kistos plc and Serica Energy not able to launch a convincing takeover offer of the other company. Recent Insider Transactions • Aug 02
Insider recently bought €334k worth of stock On the 27th of July, D. Hardy bought around 75k shares on-market at roughly €4.45 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought €724k more in shares than they have sold in the last 12 months. Announcement • Jul 20
Serica Energy plc Re-Affirms Production Guidance for the Fiscal Year 2022 Serica Energy plc re-affirms production guidance for the fiscal year 2022. Full year production guidance remains unchanged at between 26,000 and 30,000 boe/d. This guidance includes the impact of the planned summer shutdown season when key maintenance will be performed on Serica's producing assets.. Announcement • Jul 14
Kistos plc (AIM:KIST) made an offer to acquire Serica Energy plc (AIM:SQZ) for £1 billion. Kistos plc (AIM:KIST) made an offer to acquire Serica Energy plc (AIM:SQZ) for £1 billion on July 12, 2022. Kistos will pay 0.2932 new Kistos shares and cash of £2.46 per share. The offer has been rejected by the Board of Serica Energy. James McEwen and Murray Yuill of N M Rothschild & Sons Limited and Richard Crichton, Ross Allister and Michael Nicholson of Peel Hunt LLP acted as financial advisor to Serica Energy. Julian Mylchreest, Geoff Iles, TomMilner and Ben Winstanley of Merrill Lynch International and Richard Morecombe, John Prior and James Sinclair-Ford of Panmure Gordon (UK) Limited acted as financial advisor and Orrick, Herrington & Sutcliffe (Europe) LLP acted as legal advisor to Kistos.
Kistos plc (AIM:KIST) cancelled the acquisition of Serica Energy plc (AIM:SQZ) on July 12, 2022. Announcement • Jul 11
Serica Energy plc Announces Spud of North Eigg Exploration Well Serica Energy plc announced that the North Eigg exploration well has spudded. Well 3/24c-NE1 was spudded at 04:30 this morning by the Transocean Paul B. Loyd Jr. harsh environment semi-submersible drilling rig. Serica is operator and 100% interest owner in this High Pressure, High Temperature (HPHT) exploration well targeting Upper Jurassic turbidite sands, similar to those encountered in the nearby Serica operated Rhum field. If successful, it is anticipated that the reservoir will be gas filled and will be capable of providing low emissions gas to the UK domestic market during the key energy transition years of 2025 to 2035. It is anticipated that a discovery at North Eigg would be developed utilising Serica's nearby 98% owned and operated infrastructure on the Bruce platform. Upcoming Dividend • Jun 23
Upcoming dividend of UK£0.09 per share Eligible shareholders must have bought the stock before 30 June 2022. Payment date: 22 July 2022. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of German dividend payers (4.6%). Higher than average of industry peers (1.4%). Announcement • Jun 22
Serica Energy plc Announces Board Changes Serica Energy plc announced that Jérôme Schmitthas accepted an invitation to join Serica's Board as a Non-Executive Director with effect from 1 July 2022. The Company also announced that Richard Rose is stepping down as a Non-Executive Director with effect from June 21, 2022 date to take up a full-time Executive position within the sector. Jérôme joined what is now TotalEnergies in 1992 and remained with the company until late 2021. Jérôme's career with TotalEnergies covered a wide range of responsibilities including Group Treasurer from 2009-2011 and Senior Vice-President Environment and Sustainable Development from 2013-2016. More recently Jérôme has been Senior Vice-President Carbon Neutral Businesses — Gas, Renewable and Power (2016-2019) and, from 2019 to 2021, Senior Vice-President Merger & Acquisition. Richard Rose, a Non-Executive Director, who joined the Company in September 2021 has advised the Board that he has accepted a full-time Executive position within the sector and, accordingly, would have to step down from the Serica Board with immediate effect. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improved over the past week After last week's 21% share price gain to €3.40, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 6x in the Oil and Gas industry in Europe. Total returns to shareholders of 142% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €5.71 per share. Buying Opportunity • May 12
Now 21% undervalued Over the last 90 days, the stock is up 20%. The fair value is estimated to be €4.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 39% over the last 3 years. Earnings per share has declined by 35%. For the next 3 years, revenue is forecast to decline by 12% per annum. Earnings is also forecast to decline by 4.2% per annum over the same time period. Valuation Update With 7 Day Price Move • May 11
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €3.62, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 5x in the Oil and Gas industry in Europe. Total returns to shareholders of 163% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €4.55 per share. Announcement • May 06
Serica Energy plc, Annual General Meeting, Jun 30, 2022 Serica Energy plc, Annual General Meeting, Jun 30, 2022, at 13:00 Coordinated Universal Time. Location: Peel Hunt LLP, 100 Liverpool Street London United Kingdom Reported Earnings • Apr 27
Full year 2021 earnings released: EPS: UK£0.30 (vs UK£0.029 in FY 2020) Full year 2021 results: EPS: UK£0.30 (up from UK£0.029 in FY 2020). Revenue: UK£514.1m (up 309% from FY 2020). Net income: UK£79.3m (up UK£71.5m from FY 2020). Profit margin: 15% (up from 6.2% in FY 2020). Oil sales price Average sales price/bbl: US$52.73 Gas sales price Average sales price/mcf: US$12.44 LNG sales price Average sales price/bbl: US$46.38 Combined production and costs Oil equivalent production: 7.317 MMboe Average production cost/Boe: US$12.16 (US$10.34/Boe in FY 2020) Over the next year, revenue is forecast to grow 79%, compared to a 49% growth forecast for the oil industry in Germany. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 42% per year, which means it is well ahead of earnings. Reported Earnings • Apr 22
Full year 2021 earnings released: EPS: UK£0.30 (vs UK£0.029 in FY 2020) Full year 2021 results: EPS: UK£0.30 (up from UK£0.029 in FY 2020). Revenue: UK£514.1m (up 309% from FY 2020). Net income: UK£79.3m (up UK£71.5m from FY 2020). Profit margin: 15% (up from 6.2% in FY 2020). The increase in margin was driven by higher revenue. Oil sales price Average sales price/bbl: US$52.73 Gas sales price Average sales price/mcf: US$12.44 LNG sales price Average sales price/bbl: US$46.38 Combined production and costs Oil equivalent production: 7.317 MMboe (7.7 MMboe in FY 2020) Average production cost/Boe: US$12.16 (US$10.34/Boe in FY 2020) Over the next year, revenue is forecast to grow 57%, compared to a 43% growth forecast for the oil industry in Germany. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 48% per year, which means it is well ahead of earnings. Announcement • Apr 08
Serica Energy plc to Report Fiscal Year 2021 Results on Apr 21, 2022 Serica Energy plc announced that they will report fiscal year 2021 results on Apr 21, 2022 Buying Opportunity • Mar 10
Now 21% undervalued Over the last 90 days, the stock is up 46%. The fair value is estimated to be UK£4.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% per annum over the last 3 years. The company became loss making over the last year. Buying Opportunity • Feb 19
Now 21% undervalued Over the last 90 days, the stock is up 28%. The fair value is estimated to be UK£3.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% per annum over the last 3 years. The company became loss making over the last year. Buying Opportunity • Feb 04
Now 21% undervalued Over the last 90 days, the stock is up 26%. The fair value is estimated to be UK£3.67, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% per annum over the last 3 years. The company became loss making over the last year. Buying Opportunity • Jan 14
Now 22% undervalued Over the last 90 days, the stock is up 6.8%. The fair value is estimated to be UK£3.63, however is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% per annum over the last 3 years. The company became loss making over the last year. 
