Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Serica Energy hails ‘extremely good year’ as pre-tax profits nearly triple

© AJLOil company cookbook
Enjoys a lemon drizzle cake: CEO Mitch Flegg.

Serica Energy has hailed “exceptional” results after nearly tripling its pre-tax profits in its first full year of operatorship for its Bruce, Keith and Rhum (BKR) assets in the North Sea.

Pre-tax profits for 2019 were £108.8m, up from £39.5m the year before, while gross profits increased more than four-fold from £20m to £85.8m.

Serica said it had established itself “as one of the leading UKCS operating companies” having brought operating costs from BKR down from $18 a barrel to $12.6, while also increasing their daily production from 23,800 barrels to 27,300.

The first full year of production from the North Sea assets led to sales revenue increasing from £35.7m to £250.5m.

Chief executive Mitch Flegg said: “2019 was a year of exceptionally strong performance in an increasingly challenging environment.

“We have established Serica as one of the leading UKCS operating companies, as clearly demonstrated by increased production levels and reduced operating costs. This is a major credit to our talented and motivated staff.”

Serica also expressed its confidence that it is in an “exceptional position” to weather the current market uncertainties relating to the oil price and Covid-19, given its financial position.

The firm said it has experienced no disruption to operations due to the virus outbreak and swiftly put contingency measures in place.

Mr Flegg added: “We entered 2020 in an extremely robust financial position with no borrowings, a decreasing cost profile, an increasing cash position and limited decommissioning obligations.

“This provides the flexibility to meet the challenges the industry faces in the short term and pursue growth opportunities.”

Despite the resilience, the 13m Columbus gas development is expected to be delayed due to the virus to 2021, as Shell has deferred commissioning of the pipeline from its Arran field to the Shearwater platform – Columbus’ offtake route.


Recommended for you

More from Energy Voice

Latest Posts