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(Alliance News) - Serica Energy PLC on Thursday reported a sharp rise in its earnings for 2019 and declared a maiden dividend despite uncertainty arising from the Covid-19 outbreak.
Shares in the North Sea oil & gas producer closed 10% higher at 97.00 pence each on Thursday in London.
Serica said revenue for 2019 rose to GBP250.5 million from GBP35.7 million. Pretax profit also surged to GBP108.8 million from GBP39.5 million.
A dividend of 3p per share was declared.
The London-headquartered company said that net production for the group totalled an average of 30,000 barrels of oil equivalent per day. It added that the Bruce, Keith and Rhum fields in their first full year of being operated by the company, produced 27,300 barrels of oil per day compared to 23,800 for 2018.
Serica operates the Bruce, Keith, and Rhum fields in the UK North Sea, holding 98% of Bruce, all of Keith, and 50% of Rhum.
The Erskine field averaged 2,700 barrels of oil equivalent per day compared to 650 barrels for 2018.
Over the period, the Serica sold around 491.3 million therms of gas, 1.6 million lifted barrels of oil and 85,500 metric tonnes of natural gas liquids. This represented net average sale prices of 31 pence per therm, USD61.4 per barrel and USD337 per tonne respectively, giving a sales price for lifted volumes of USD30 per barrel of oil equivalent.
Looking ahead, the company said the Covid-19 outbreak has not interrupted production, adding that recently-identified cost savings and its "robust" financial health puts it in an "exceptional" position to weather current market uncertainties and seek out new investment opportunities.
"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," said Chief Executive Mitch Flegg.
As at the end of 2019, Serica had cash of GBP101.8 million
By Ife Taiwo; ifetaiwo@alliancenews.com
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