Serica Energy profits plunge in “challenging” year for sector

Serica Energy Bruce, Keith & Rhum platforms

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OIL and gas company Serica Energy reported group profit before tax of £12.5m in its 2020 results published today, plunging from £108.8m year-on-year.

The drop was blamed on low commodity prices and the deterioration of a caisson on its Bruce platform that led to a 45 day shutdown.

The London-listed firm reported average net production of 23,800 barrels of oil equivalent per day, down from 30,000 barrels per day in 2019, with the reduction due to caisson repairs in the first half, and other field maintenance work.

Cash flow from operations fell to £44.1m from £137.1m year-on-year, while capital expenditure increased to £26.6m from £5.3m.

Closing cash and cash equivalents totalled £89.3m on 31 December, down from £101.8m 12 months earlier, after capital expenditure and the dividend payment, with the firm reporting no debt.

Mitch Flegg, chief executive officer, said: “We are reporting solid results after a challenging year and a severe industry downturn.

“Despite the many obstacles 2020 presented, Serica has continued to strengthen its financial and operational foundations and also to deliver returns to its shareholders.

“Covid-19 caused disruption to global markets and threatened operations during 2020 but Serica responded rapidly to protect its personnel and ensure continuing supplies of oil and gas into the British market.”

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