British independent upstream oil and gas company Serica Energy has closed 2022 on a high, with positive numbers across the board. The company said in its latest report that its operating profit rose by 93 percent, while there was a 124 percent increase in profit after tax.
The company also noted that average net production reached 26,200 boe per day compared to 22,200 boe per day in 2021, an increase of 18 percent.
Operating profit for the period ending 31 December 2022 was GBP 476.2 million ($596.3 million). This compares to GBP 246.1 million ($308.1 million) reported in 2021.
Profit after tax reached GBP 177.8 million ($222.6 million), up from GBP 79.3 million ($99.0 million).
“2022 was another year of exceptional progress for Serica. There was strong growth in production volumes, significant improvement in reserves and increased profitability across the board,” said Mitch Flegg, CEO of Serica
“Serica’s dual strategy is to invest in our high-quality portfolio of UK North Sea assets to unlock value and extend their lives while continuing to target future acquisition opportunities. It is expect the Government to ensure that the tax terms that apply to the UK North Sea make the UK competitive for future energy investment,” he said.
The company has completed the acquisition of Tailwind, which has increased production and reserves and provides a number of short-cycle growth opportunities for Serica. The company said in its report that the acquisition of Tailwind was completed by the end of March 2023 and is already diversifying the group’s collection routes and freight balance.
The acquisition, according to Serica, has already yielded an average combined net production of 46,800 boe per day in the first quarter of 2023.
The combined group’s 2023 production guidance range remained between 40,000 and 47,000 boe per day on a full-year pro forma basis, the report said.
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