Latest news with #SericaEnergy
Yahoo
06-08-2025
- Business
- Yahoo
Serica Energy PLC (SQZZF) (H1 2025) Earnings Call Highlights: Resilience Amidst Challenges and ...
Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Serica Energy PLC (SQZZF) demonstrated resilience despite challenges, maintaining a pre-tax profit and increasing cash reserves. The company successfully completed a Triton drilling program 25 days ahead of schedule and $31 million under budget. Production optimization efforts at the BKR hub have shown positive results, with production increasing to nearly 22,000 barrels of oil equivalent per day in July. Serica Energy PLC (SQZZF) has a strong liquidity position with $433 million at the period end, allowing flexibility for M&A opportunities. The company announced a 6p interim dividend for 2025, consistent with the previous year's final dividend, indicating confidence in future cash flow generation. Negative Points Unscheduled downtime at Triton significantly impacted production performance in the first half of 2025. Production and revenues were materially reduced, with a 40% decrease in production compared to the first half of 2024. The FPSO at Triton faced teething problems during the restart, leading to slower-than-expected production ramp-up. Political uncertainties, including potential unfavorable decisions regarding the Kyle project, could impact future performance. The proposed merger with Nquest did not proceed due to unfavorable deal terms, highlighting challenges in executing strategic M&A. Q & A Highlights Warning! GuruFocus has detected 9 Warning Signs with SQZZF. Q: Once the new wells are in production at Triton, will Serica's share of production be greater than Dana's? Could you give a rough idea of our percentage share of production when the new wells are on stream? A: Yes, Serica already produces more than Dana over the FPSO. Without the new wells, about 70% of the production over the FPSO is Serica's, and we expect that range to be 70-80% over the coming years. (Respondent: Unidentified_2) Q: Would it make more sense for Serica to assume operator status at Triton? Have you suggested Serica becoming operators to Dana? A: Yes, it would make more sense, and we have discussed it with Dana. However, taking over operatorship would not change everything overnight. The current team is dealing with a vessel that hasn't been maintained properly for years, and they are doing the right things under challenging circumstances. (Respondent: Unidentified_2) Q: Are you comfortable that the changes made will ensure Triton stays on top of maintenance going forward? How much influence do you have to ensure this? A: We have some influence as we pay the majority of the costs and have the majority of the production. We support Dana and have provided technical support and resources to help them address maintenance issues. (Respondent: Unidentified_2) Q: What lessons have you learned from the unexpected downtime at Triton that could be applied elsewhere to avoid similar events? A: The key lesson is to stay on top of maintenance. Skipping maintenance can lead to significant problems, especially with older and complex assets like the Triton FPSO. (Respondent: Unidentified_2) Q: How do you view Rachel Reeves's recent comments on the windfall tax? Do you feel the progress made in consultations hits a wall with the Chancellor? A: It was disappointing to read those comments. However, the consultation process has been sensible, and we expect answers in the autumn budget. We will navigate the tax environment and continue to make short-cycle investments that can work within it. (Respondent: Unidentified_3) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
Serica Energy PLC (SQZZF) (H1 2025) Earnings Call Highlights: Resilience Amidst Challenges and ...
Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Serica Energy PLC (SQZZF) demonstrated resilience despite challenges, maintaining a pre-tax profit and increasing cash reserves. The company successfully completed a Triton drilling program 25 days ahead of schedule and $31 million under budget. Production optimization efforts at the BKR hub have shown positive results, with production increasing to nearly 22,000 barrels of oil equivalent per day in July. Serica Energy PLC (SQZZF) has a strong liquidity position with $433 million at the period end, allowing flexibility for M&A opportunities. The company announced a 6p interim dividend for 2025, consistent with the previous year's final dividend, indicating confidence in future cash flow generation. Negative Points Unscheduled downtime at Triton significantly impacted production performance in the first half of 2025. Production and revenues were materially reduced, with a 40% decrease in production compared to the first half of 2024. The FPSO at Triton faced teething problems during the restart, leading to slower-than-expected production ramp-up. Political uncertainties, including potential unfavorable decisions regarding the Kyle project, could impact future performance. The proposed merger with Nquest did not proceed due to unfavorable deal terms, highlighting challenges in executing strategic M&A. Q & A Highlights Warning! GuruFocus has detected 9 Warning Signs with SQZZF. Q: Once the new wells are in production at Triton, will Serica's share of production be greater than Dana's? Could you give a rough idea of our percentage share of production when the new wells are on stream? A: Yes, Serica already produces more than Dana over the FPSO. Without the new wells, about 70% of the production over the FPSO is Serica's, and we expect that range to be 70-80% over the coming years. (Respondent: Unidentified_2) Q: Would it make more sense for Serica to assume operator status at Triton? Have you suggested Serica becoming operators to Dana? A: Yes, it would make more sense, and we have discussed it with Dana. However, taking over operatorship would not change everything overnight. The current team is dealing with a vessel that hasn't been maintained properly for years, and they are doing the right things under challenging circumstances. (Respondent: Unidentified_2) Q: Are you comfortable that the changes made will ensure Triton stays on top of maintenance going forward? How much influence do you have to ensure this? A: We have some influence as we pay the majority of the costs and have the majority of the production. We support Dana and have provided technical support and resources to help them address maintenance issues. (Respondent: Unidentified_2) Q: What lessons have you learned from the unexpected downtime at Triton that could be applied elsewhere to avoid similar events? A: The key lesson is to stay on top of maintenance. Skipping maintenance can lead to significant problems, especially with older and complex assets like the Triton FPSO. (Respondent: Unidentified_2) Q: How do you view Rachel Reeves's recent comments on the windfall tax? Do you feel the progress made in consultations hits a wall with the Chancellor? A: It was disappointing to read those comments. However, the consultation process has been sensible, and we expect answers in the autumn budget. We will navigate the tax environment and continue to make short-cycle investments that can work within it. (Respondent: Unidentified_3) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Herald Scotland
23-07-2025
- Business
- The Herald Scotland
Parkmead targets 'greener' deals after North Sea exit
The company sold subsidiary Parkmead (E&P), which included its North Sea oil licences, to Serica Energy in a deal worth up to £134 million that was first announced in December. It cited the ongoing challenges 'in the form of the current political environment towards UK oil and gas' – a reference to the windfall tax on North Sea profits that was increased by the Labour Government after coming to power – and the focus of the Starmer administration's net zero strategy as it explained the rationale for the sale. Parkmead has retained its 100% owned and operated Kempstone Hill wind farm in the north-east of Scotland, and four producing onshore gas fields in the Netherlands. And it signalled that it was actively seeking to expand its portfolio, telling the City that it is 'continuing to mature a range of high-impact investment and acquisition opportunities'. 'These initiatives are aligned with the group's strategy to grow and diversify its interests across international E&P (energy and production) and UK renewable energy projects,' the company added in a statement. Read more: 'Given that Parkmead will no longer be an offshore licence operator in the North Sea, with all the regulatory aspects and operational demands that entails, we have reduced staff positions and reduced our office space by over 40%. 'After more than four years of excellent service as a non-executive director, Robert Finlay has left the board with immediate effect to focus on his other activities. We would like to thank Robert for his important contribution to the group and wish him every success in the future. The company is well advanced in its process to bring a further independent NED (non-executive director) onboard and will provide an update in due course.' Parkmead said Kempstone Hill wind farm 'continued to perform strongly' in the first half of the year and had maintained an 'exceptionally high level of operational efficiency, in the range 96-99%'. Declaring that this performance had demonstrated the 'reliability of the asset', the group said that it was 'continuing to assess the potential to expand the electricity production capability of the Kempstone Hill site, to make use of its excess grid capacity'. In the Netherlands, the company reported average net production of 155 barrels of oil equivalent per day in the first half from its Dutch fields. It said its business had 'benefited from stronger commodity market conditions' over the period, with realised gas prices increasing to €41.86 per megawatt hour from €38.16/ MWh. It noted that it was evaluating new drilling targets to boost future production. Mr Cross, who is known for building and then selling Dana Petroleum to the Korea National Oil Corporation for £1.6 billion, said: 'Parkmead has made strong progress across all elements of the business in the first half of 2025. We have completed the sale of our UK offshore-focused subsidiary, delivered solid operational performance from our onshore producing assets, advanced our flagship renewable energy project at Glenskinnan [in the north-east of Scotland], and achieved a very healthy and robust financial position. 'Our continued focus on strategic growth and efficiency ensures Parkmead is well positioned for the future." Shares in Parkmead closed up 7.64%, or 1.10p, at 15.5p.
The Herald Scotland
15-07-2025
- Business
- The Herald Scotland
Scottish law firm Brodies defies 'global headwinds'
The firm, which employs nearly 900 people across offices in Edinburgh, Glasgow, Aberdeen, Inverness, and London, highlighted the 'resilience and ambition' of its clients amid the domestic and global headwinds as it reported an 11% rise in turnover to £126.7 million for the year ended April 30. The rise in turnover, which was driven by growth across all of the firm's core practice areas – banking and finance, corporate and commercial, dispute resolution and risk, personal and family, and real estate – helped lift operating profit above £50m from £49.2m the previous year. Profit per equity partner was recorded at £885,296. Asked to assess the current appetite for deal-making in Scotland, Mr Goldie, who succeeded Nick Scott in the top job last year, told The Herald: 'There have been fluctuations in the flow of UK and international deals, with some volatility in the investment and M&A (mergers and acquisitions) markets generally, largely attributable to macroeconomic and geopolitical issues. 'However, with interest rates and inflation in the UK having largely stabilised, that degree of increased certainty in the market is feeding an appetite for deals in many key sectors across the Scottish market. From our clients we're seeing those movements particularly evident in, for example, the energy, technology and business services sectors.' Highlights of its most recent financial year flagged by Brodies include acting for Parkmead Group, the energy firm built by North Sea veteran Tom Cross, on the sale of its UK oil assets to Serica Energy, and for Three60 Energy on its acquisition of the entire issued share capital of Samphire Subsea Limited. Brodies also acted on Europa's £70m acquisition of the Granary Quay build-to-rent residential development overlooking the River Clyde in Glasgow from Dandara Group. 'Confusion and uncertainty': Scotch whisky rocked by global upheaval New Scots planning chiefs flag 'headwinds' amid signs of activity Energy chief's price pledge as £300m Glasgow district heating scheme takes shape Mr Goldie noted: 'Achieving progress amid continuing domestic and global headwinds reflects the resilience and ambition of our clients in Scotland, across the UK, and internationally. Their trust in us to deliver results on complex and exciting mandates inspires us to work harder and smarter every day. 'Recording our fifteenth consecutive year of growth is testament to the strength of those relationships and the dedication of our colleagues to deliver exceptional legal services. 'As we enter the second year of our current three-year strategic cycle, we remain focused on those plans—recognising the talent and contribution of our colleagues, encouraging greater collaboration across our firm and with our clients, and investing in our offices and in technology that augments the high standards our clients expect.' Brodies said it invested in the Highlands and Islands over the period, including to expand its Inverness office to support its growth ambitions for the region. The firm made further additions to its team, with its headcount climbing by 5% to 883. Key hires include the appointment of banking and finance partner James Wilson, while seven internal partner promotions were made. A 5% bonus was paid to all eligible colleagues, compared with 3% last year, alongside individual performance bonuses and salary increases. Cash balances at year-ended stood at £23.7m, up from £20.9m at the same stage a year earlier. The results reflected the first full financial year overseen by Mr Goldie, and came as Iain Rutherford steps up to succeed Christine O'Neill KC as chair. Ms O'Neill, who has completed four three-year terms in the role, continues to be a partner of the firm. Mr Goldie added: 'We also welcome our new chair, Iain Rutherford, and extend our utmost thanks to Christine O'Neill KC for the considerable wisdom and unwavering commitment she brought to the role of chair. Clients and colleagues alike will continue to benefit from those qualities in her role as a partner in our disputes team. 'The year in review marks my first full year as managing partner. In that time, it has been my privilege to work closely with many colleagues across the firm. I am continually impressed by the exceptional talent and kindness that I witness daily. It reminds me that over and above everything else, we are a people business that believes in our core values."
Business Insider
12-07-2025
- Business
- Business Insider
Serica Energy (SQZ) Receives a Buy from Canaccord Genuity
Canaccord Genuity analyst Phil Hallam maintained a Buy rating on Serica Energy today and set a price target of £1.90. The company's shares closed today at p170.80. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Hallam is an analyst with an average return of -0.6% and a 44.44% success rate. Hallam covers the Energy sector, focusing on stocks such as SEPLAT Petroleum Development, Zephyr Energy, and Serica Energy. Serica Energy has an analyst consensus of Moderate Buy, with a price target consensus of p188.50.
