Serica Energy PLC reported a net loss of $52 million for the fiscal year 2025, while several operating metrics outperformed analyst forecasts. The company said production averaged 27,600 barrels of oil equivalent per day for the fiscal year and that its year-end net debt stood at $200 million.
Management expects net debt to fall substantially in the first quarter after receiving a $56 million payment from TotalEnergies. The company described the payment as reflecting interim post-tax cash flows associated with a 40% operated working interest in the Greater Laggan Area from January 1, 2024, following completion of that acquisition on Thursday. The arrangement is expected to more than halve Serica’s reported year-end net debt when accounted for in first-quarter results.
The Greater Laggan Area asset contributes current net production of just over 5,000 barrels of oil equivalent per day to Serica’s portfolio. The acquisition also brings 2P reserves of 4 million barrels of oil equivalent and 2C resources of 5.4 million barrels of oil equivalent, according to the company’s statements.
On an earnings basis, Serica reported EBITDAX of $210 million, slightly ahead of the $205 million consensus estimate. Hedging performance was a notable driver of results, with hedging gains of $75 million beating expectations of $60 million.
Production for fiscal 2025 declined 20% year-over-year, a shortfall the company attributed to unscheduled downtime at the Triton floating production, storage and offloading unit (FPSO). Year-to-date production averaged 38,600 barrels of oil equivalent per day after Triton was shut in for 24 days to conduct emergency maintenance.
Following the restart of Triton on Monday, March 9, Serica said production has averaged in excess of 50,000 barrels of oil equivalent per day. The company characterized this rebound as evidence of recovery in output following the outage.
On shareholder returns, Serica declared a final dividend for 2025 of 10 pence per share, payable on Friday, July 24, subject to approval at the annual general meeting. Combined with an earlier interim dividend of 6 pence per share, the total dividend payout for fiscal 2025 amounts to $84 million, which Serica said implies a yield of around 7% for the year.
Looking ahead, Serica reaffirmed its fiscal 2026 production guidance, targeting output significantly above 40,000 barrels of oil equivalent per day. The company also reiterated a pathway that could see production exceed 65,000 barrels of oil equivalent per day by the end of 2026, contingent on completion of the acquisitions it announced during 2025.
Those announced deals include the Catcher acquisition, the Golden Eagle Area Development and assets from Spirit Energy; Serica indicated these transactions remain on track for completion. Capital expenditure guidance for the company was left unchanged at between $175 million and $195 million, and operating expenditure guidance also remained steady in a band of $380 million to $400 million.
Finally, Serica said it plans to transfer its listing from AIM to the Main Market of the London Stock Exchange during the third quarter of 2026, a strategic move the company has scheduled as part of its corporate timeline.
Clear summary
Serica posted a $52 million net loss for fiscal 2025 but beat estimates on EBITDAX and hedging gains. A $56 million payment linked to the Greater Laggan Area acquisition is expected to more than halve year-end net debt of $200 million in the first quarter. Production was materially affected by Triton FPSO downtime but has since recovered, and the company has reiterated its 2026 production guidance and unchanged capital and operating expenditure ranges.
Context and near-term catalysts
- Greater Laggan Area acquisition - adds ~5,000 boe/d net production and material 2P and 2C volumes.
- Triton FPSO operational recovery - production averaged over 50,000 boe/d since March 9 restart, following a 24-day shutdown.
- Portfolio expansion - Catcher, Golden Eagle Area Development and Spirit Energy asset deals remain on track and underpin the potential production ramp to >65,000 boe/d by end-2026.
Financials and guidance
- Net loss: $52 million for fiscal 2025.
- EBITDAX: $210 million (vs $205 million est.).
- Hedging gains: $75 million (vs $60 million est.).
- Year-end net debt: $200 million - expected to more than halve after $56 million payment from TotalEnergies in Q1.
- Capex guidance: $175 million to $195 million; Opex guidance: $380 million to $400 million.
Key points
- Serica beat consensus on EBITDAX and hedging gains, which helped offset a reported net loss of $52 million for fiscal 2025.
- A $56 million payment linked to the Greater Laggan Area acquisition is expected to significantly reduce reported year-end net debt of $200 million in the first quarter.
- Operationally, production suffered from an unplanned Triton FPSO outage but has since rebounded sharply, and several announced acquisitions remain on track to lift output further in 2026.
Risks and uncertainties
- Operational downtime risk - Unscheduled maintenance at the Triton FPSO led to a 20% drop in fiscal 2025 production; similar outages could affect near-term output and cash flows. - Impacts: energy production and oilfield services sectors.
- Execution risk on acquisitions - The target to exceed 65,000 boe/d by end-2026 depends on the completion and integration of multiple asset purchases announced in 2025. Delays or issues could alter production and financial trajectories. - Impacts: energy sector and markets assessing company growth projections.
- Reliance on one-off payments - The anticipated halving of net debt in Q1 is driven by a specific $56 million payment from TotalEnergies; timing and receipt of such payments are material to leverage metrics. - Impacts: corporate finance assessment in the energy sector.