Serica Energy Plc · LSE:SQZ
Serica Energy — Shareholder Meeting (2023)
21 slides from Serica Energy's shareholder meeting presentation, 2023
Slide 1: Growing Our Business for Shareholders – 2023 Annual General Meeting
GROWING OUR BUSINESS FOR SHAREHOLDERS 2023 Annual General Meeting Serica Energy plc 2023 AGM 1
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Serica Energy PLC (the "Company") and is for information purposes only. The information contained in this document is being made available to, and is only directed at, persons to whom it may lawfully be communicated to ("Relevant Persons"). Any person wh
Slide 3: Secure Foundations
SECURE FOUNDATIONS Serica Energy plc 2023 AGM 3
Slide 4: Focus, Growth, Balance
FOCUS, GROWTH, BALANCE • Focus on building a diverse and balanced production portfolio • Now among top 10 UKCS producers • Reserves balanced between gas and oil • Two main production hubs with no transportation overlap • Outstanding ESG performance • Material value-adding investment opportunities wi
Slide 5: Successful Organic Investment in Assets
SUCCESSFUL ORGANIC INVESTMENT IN ASSETS Serica 2P Reserves since 2018 (mmboe) • Serica has replaced more than 100% of its production since 2018: • Over 30 million boe produced • 2P reserves at end 2022 higher than at end 2018 • Reflects successful strategy of investing in our assets: • Rhum R3 proje
Slide 6: Diverse and Balanced Production Portfolio
DIVERSE AND BALANCED PRODUCTION PORTFOLIO 2023 net production guidance 40-47,000 boe/d Pipeline export to shore in UK via FUKA and FPS 47% oil, 53% gas 11 producing fields 2 producing hubs 200+ staff 80% of production In London, Aberdeen and operated by Serica offshore Main production hubs have no o
Slide 7: Emissions Reductions Ahead of Plan
EMISSIONS REDUCTIONS AHEAD OF PLAN • Emissions 14% lower than in 2018 (North Sea Transition Deal reference year) BKR Scope 1 CO2 emissions (tonnes) • Carbon intensity at lowest level since Serica became operator 2022 218,567 Bruce Hub Emissions Reduction Plan 2021 208,882 2020 204,648 2019 242,881 2
Slide 8: 2022 Results
2022 RESULTS Serica Energy plc 2023 AGM 8
Slide 9: Highlights
HIGHLIGHTS Average net production increased by 18% to 26,200 boe/d (2021: 22,200 Higher Production boe/d). Operating Costs reduced to US$15.7/boe (2021: US$16.5/boe) Serica net 2P reserves increased to 74.9 million boe at end 2022 (2021: Increased Reserves 62.2 million boe). Serica 2022 production r
Slide 10: Strong Financial Results
STRONG FINANCIAL RESULTS Revenue (£million) Unit Operating Costs (US$/boe) Operating Profit (£million) 2022 812 2022 15.7 2022 476 2021 514 2021 16.5 2021 246 2020 14.1 2020 -18 2020 126 2019 12.6 2019 88 2019 251 2018 18.0 2018 8 2018 36 Profit After Taxation (£million) Full Year Dividend (p/share)
Slide 11: Volatile Commodity Prices
VOLATILE COMMODITY PRICES Monthly Average Gas and Oil Prices 400 • High level of gas price volatility has continued • In 2022 daily average gas prices ranged 350 between 10p/th and 516p/th 300 • The annual average market gas prices: 250 2020 25p/th 2021 113p/th 200 2022 198p/th 150 2023 YTD 109p/th
Slide 12: Cash Position Remains Strong Post Tailwind Completion
CASH POSITION REMAINS STRONG POST TAILWIND COMPLETION Serica Cash, Cash Equivalents and Hedging Advances (£ million) • Serica cash plus margin calls of £457 million at 500 1 January 2023 450 • Unaudited net cash of £217 million at 21 June 400 2023 comprised of: 350 • Cash holdings of £445 million (n
Slide 13: Increased Dividend
INCREASED DIVIDEND • Strong profitability and cash generation during 2022 enabled payment of a maiden interim dividend of 8p per share in November 2022 • Financial performance during 2H 2022 allows Serica to propose a final dividend of a further 14p/share • Subject to shareholder approval at the AGM
Slide 14: Outlook Following Tailwind Acquisition
OUTLOOK FOLLOWING TAILWIND ACQUISITION Serica Energy plc 2023 AGM 14
Slide 15: Multi-Faceted Rationale for Tailwind Transaction
MULTI-FACETED RATIONALE FOR TAILWIND TRANSACTION Diversifies portfolio Production & reserves increased Improved cashflow Portfolio and shareholder diversification return predictability Accretive from year one for shareholders Financial strength enhanced Greater resilience Committed strategic investo
Slide 16: Shared Record of Reserves Replacement
SHARED RECORD OF RESERVES REPLACEMENT Proforma 2P Reserves Movement (mmboe) • Both companies pursued strategy of investing in assets • Impact reflected in increased volumes and extension of field lives • Over 300% combined proforma reserves replacement ratio in 2022 • Estimates based on independent
Slide 17: Very Good 'Year to Date' Production
VERY GOOD ‘YEAR TO DATE’ PRODUCTION Combined Average Net Weekly Production (boe/d) 70,000 • Net production for the combined Serica and Tailwind portfolios has 60,000 averaged over 49,000 boe/d YTD (24 Jun) 50,000 • Both Bruce and Triton hubs have 40,000 performed well 30,000 • Several planned mainte
Slide 18: Disciplined Asset Investment Strategy
DISCIPLINED ASSET INVESTMENT STRATEGY • Serica’s asset investment strategy shaped by maturity of the UKCS, UK fiscal regime and regulatory uncertainty • Expanded portfolio includes variety of organic investment opportunities • Committed investments in 2023-24 characterised by utilisation of existing
Slide 19: Planned Hub Investments in 2023-24
PLANNED HUB INVESTMENTS IN 2023-24 BRUCE TRITON Guillemot NW infill well Gannet E GE-05 infill well Evelyn phase 2 well Bruce and Keith Light Well Intervention Campaigns Bittern B1z sidetrack Serica Energy plc 2023 AGM 19
Slide 20: A New Growth Phase
A NEW GROWTH PHASE Following the Tailwind transaction, Serica characterised by: • Significant potential for growing value from the existing portfolio: • Multiple organic tax-efficient investment opportunities • Strong team with record of successfully delivering projects such as R3 and Evelyn • Subst
Slide 21: For further information visit www.serica-energy.com
For further information visit www.serica-energy.com Email: info@serica-energy.com linkedin.com/company/serica-energy-plc @SericaEnergyplc Serica Energy plc 2023 AGM Serica acquisition of Tailwind assets – January 2023