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Investing.com -- Serica Energy PLC (LON:SQZ) on Wednesday reported 2025 production of 27,600 barrels of oil equivalent per day (boepd), in line with guidance but down from 34,600 boepd in 2024, as the company positions itself for significant growth in 2026 through multiple acquisitions.
The UK North Sea producer has seen a strong start to 2026 with year-to-date production of 43,000 boepd and current rates around 50,000 boepd.
The company expects production to increase "significantly over 40,000 boepd" for the full year, with potential to exceed 65,000 boepd as recently announced acquisitions complete throughout 2026, more than doubling the number of producing fields in its portfolio.
"Serica enters 2026 as a stronger, more resilient company, with increasingly diversified production and revenues that are set to rise materially from 2025 levels," said CEO Chris Cox. "The expansion of our portfolio is delivering a greater number of attractive organic growth options, allowing us to cherry-pick those that offer the greatest return on investment."
The company reported 2025 revenue of $601 million, down from $727 million in 2024, reflecting lower production and oil prices, with realized Brent prices averaging $67/bbl compared to $75/bbl the previous year. Gas prices improved to 84p/therm from 76p/therm in 2024. Serica ended 2025 with $31 million in cash and net debt of $200 million.
Capital expenditure for 2025 was $250 million, primarily directed toward the Triton drilling program, while operating expenses totaled $365 million. For 2026, the company forecasts capital expenditure of $125-145 million, with over half allocated to the Bruce platform, and operating expenses of $380-400 million, excluding approximately $65 million related to the Lancaster FPSO charter.
Serica maintained shareholder returns with dividends of $84 million in 2025, equivalent to 16p per share. The company expects to generate "material free cash flow" in 2026 at current commodity prices, supporting both organic growth and shareholder returns.