Sereica Energy's market cap surged close to £1billion yesterday after it reported a major increase in profits.

Pre-tax profit in the six months to the end of June was £194.5million at the North Sea firm, compared with £2.2million in the same period last year on revenue which more than tripled to £353million.

The results pushed the company’s share price up by 4.7% and took its market cap close to £1 billion, according to The Times.

The shares, which have risen by more than 45%since the start of the year, closed up 13p, or 3.8%, at 355p.

Serica’s production is mainly in gas but for the first half of the year it was equivalent to 26,600 barrels of oil, up from 18,855 in 2021.

The average price it received per therm of gas was 175p while for oil it was $101 per barrel, compared with 50p and $43.30 in the same half last year.

A first interim dividend, worth 8p per share, was also announced adding to the 9p full-year payment for 2021.

Further distributions to shareholders as well as share buybacks are a possibility although the company suggested that those may depend on whether it pursues acquisitions.

The company rejected an approach from Kistos earlier this year, while its own attempt to buy that company was also knocked back.

Serica was founded in 2004 and is an independent oil and gas company focused on the North Sea with interests in five producing fields.

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