Serica Energy has this morning revealed it is eyeing up "further opportunities" in the North Sea as the company announced a strong first six months of 2026.
Posting its half year results to June 30, Serica revealed a "significantly strengthened balance sheet", transitioning from a $200million net debt position at the end of 2025 to a net cash position of $26million in the space of six months.
Amid soaring revenue - which has already surpassed the full year revenue from 2025 - CEO Chris Cox confirmed Serica is looking at possible mergers and acquisitions in the North Sea as well s internationally.
That news comes days after BP announced plans to sell off its North Sea business.
Chris Cox, Serica's CEO, stated: "Serica delivered a strong first half, with robust production, material free cash flow and a significantly strengthened balance sheet. The operational work completed last year is now translating into much improved asset performance, most notably at Triton, and the addition of production from new assets has provided a further boost. Together with a supportive commodity price environment, this performance generated $184million of free cash flow and enabled Serica to move from net debt at year-end 2025 to a net cash position at 30 June 2026.
"We have taken advantage of attractive market conditions and successfully completed both the issue of a new five-year Nordic Bond and refinanced our RBL facilities with a new six-year maturity $750million facility. This gives Serica substantial liquidity and flexibility as we enter the next phase of organic investment and portfolio growth. We expect to shortly confirm contracting of a rig to deliver our high-impact and rapid return organic growth projects in the UK North Sea, and continue to seek further opportunities to deliver shareholder value via M&A both in the UK and internationally.
"A long-standing objective is to establish a significant international business to complement our position on the UKCS. The recommended acquisition of Pharos Energy represents the first step in delivering that strategy, and the deal, should it complete, is set to deliver value accretive, materially cash-generative diversification and act as an ideal platform for further international growth."
During the first six months of 2026, Serica recorded increased production levels of 44,700 boepd, a significant rise from 24,700 boepd in the same period last year.
During that time, revenue more than doubled, reaching $677million compared to $305million in the first half of 2026.
The 2026 revenue figure has already surpassed the full year revenue from 2025, of $601million.
In the wake of BP's decision to leave the North-east, Aberdeen & Grampian Chamber of Commerce Chief Executive Russell Borthwick said the news marked "defining moment" for new Prime Minister Andy Burnham, calling for him to press ahead with the approval of Jackdaw and Rosebank and remove the damaging Energy Profits Levy.