Serica Energy Plc · LSE:SQZ
Serica Energy — FY2024 Earnings Presentation
24 slides from Serica Energy's earnings presentation, Apr 1, 2025
Slide 1: Full-year results 2024
Full-year results 2024 1 APRIL 2025 Contributing responsibly towards meeting the world's energy needs through the safe and efficient production of hydrocarbons
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: Who we are
Who we are • Production from two major hubs supports material cash generation and shareholder returns for years to come • Even split of oil and gas, with Bruce Hub gas c.5% of UK total production • Successful drilling programme at Triton with production enhancement and cash to come • Material 2C res
Slide 4: Delivering value through organic growth and M&A
Delivering value through organic growth and M&A • Deliver value to shareholders through a mix of share price growth and direct shareholder returns • Specialising in generating value from mid-to-late life assets, with subsurface expertise able to unlock reserves and optimise production • Potential in
Slide 5: 2024 production impacted by unscheduled downtime
2024 production impacted by unscheduled downtime 60000 Production Day before (BOEPD) Storm Éowyn 50000 40000 30000 Annual maintenance programmes 20000 10000 0 January February March April May June July August September October November December January February March 23 Jan 25 Bruce Hub Triton Hub O
Slide 6: Striving to deliver more reliable and predictable production
Striving to deliver more reliable and predictable production • Work being done to increase level of uptime at Triton FPSO • Compressor issues key reason for downtime in 2024 - Second compressor available post-shutdown - Compressor operations amended, addressing root cause of issues • Work continues
Slide 7: Addressing the issue
Addressing the issue • Storm Éowyn caused damage to a storage tank, which requires inert gas to be pumped into the tank • Issues identified with the integrity of the inert gas line; following detailed inspection of the gas-free venting system more significant repair work is being undertaken • Summer
Slide 8: Updated 2025 production guidance
Updated 2025 production guidance • Full-year production guidance for 2025 has been amended to 33,000-37,000 boepd • Mid-point presumes: - Triton coming back online at the end of June, while the operator currently believes work will be complete at the start of June - P90 expectations for new wells on
Slide 9: Triton drilling campaign delivering results
Triton drilling campaign delivering results • Four wells drilled safely and successfully Triton drilling programme • Drilling programme has been on time and on budget • Two wells have added to production, with strong initial Field Activity SQZ Q1 Q2 Q3 Q4 Jan flow rates Gannet E GE05 well 100% - Bit
Slide 10: Two more wells set to add to production
Two more wells set to add to production • GNW W7z ready to go GNW W7Z results UDR – Resistivity Tool Imaging - Tie-back operations complete and well ready for flow-back - Excellent response from Ultra-Deep Resistivity Well reservoir length 1600ft (488m) (UDR) and reservoir optimisation while drillin
Slide 11: Material increase in 2C resources
Material increase in 2C resources 160 Reserves and resources • 2P reserves of 117.5 mmboe (MMBOE) 140 - Broadly even split between oil (55.1 mmboe) and 140.3 gas (62.4 mmboe) 120 117.5 - Production of 12 mmboe in 2024 100 • Reassessment of portfolio opportunities ongoing 88.7 - SCE/SCW wells on BKR
Slide 12: High-grading organic growth opportunities
High-grading organic growth opportunities BKR TRITON OTHERS GBA Serica operated: Operated by Others: Skerryvore Bruce: LWIV (M3 + M6) GBA exploration (Wengen, Cortina NE & Verbier Deep) Exploration Bruce: infills Phase 2 /Appraisal Keith East & West Bruce BKR: asset life extn to 2040 Bruce: Platform
Slide 13: Converting resources to reserves – Kyle (Serica, 100%)
Converting resources to reserves – Kyle (Serica, 100%) • Awarded to Serica in 33rd licensing round • Improved understanding of subsurface has resulted in greater development potential • 11.1 mmboe 2C resources • Initial production rates potentially in the 6-10,000 boepd range • Project sanction poss
Slide 14: Converting resources to reserves – BKR
Converting resources to reserves – BKR Bruce field potential infill targets • 33.4 mmboe of 2C resources • Newly re-processed 3D seismic data helping to unlock Bruce potential • Updated mapping complete and future infill well opportunities now being assessed • Bruce and Keith field workstreams 2025
Slide 15: FY 2024 performance at a glance
FY 2024 performance at a glance Production Unit operating cost EBITDAX1 Profit before tax Net Income 34.6 kboe/d ~$26/boe $379 million $160 million $92 million Carbon intensity3 Total Capex and Abex1 Adjusted CFFO2 post tax1 Distributions Paid4 Adjusted Net Debt1 17 kgCO2/boe $278 million $403 milli
Slide 16: 2024 and 2023 Restated income statement
H1 24 Income Statement 2024 and 2023 Restated1 income statement $ million 2024 2023R Revenue 727 789 • Like for like revenues down 20% from $917 million Direct Operating Costs (330) (273) 2023 proforma revenues Lifting costs (7) (9) DD&A (187) (136) - 2 million boe lower sales, primarily due to Trit
Slide 17: Balance sheet
H1 24 Income Statement Balance sheet 31 December 31 December Assets 2024 2023 $ million $ million • Adjusted Net Debt $83 million – 0.2x EBITDAX E&E 20 2 PP&E 992 906 - $90 million at 27 March despite continued Deferred tax asset Inventory 55 15 107 14 strong capex investment and no Triton Trade and
Slide 18: Market-leading low decommissioning liabilities
Market-leading low decommissioning liabilities 10 Decommissioning liabilities1 ($/boe 2P) 8 • No near-term expenditure on decommissioning activities 6 North Sea Average (excluding Serica) : $5.0/boe • Year-end decommissioning provision of $146 million2 • Lowest decommissioning liability per 2P boe c
Slide 19: Tax payments sheltered by tax losses and investment
Tax payments sheltered by tax losses and investment UKCS tax rates • Cash tax paid in 2024 of $153 million (2023: $348 Serica loss pools (%) million) 109% - Serica has paid >£500 million corporation tax Decarbonisation since 2021 allowance CT 84.25% • Serica’s tax losses have a total notional value1
Slide 20: Capital expenditure and available funds
Capital expenditure and available funds 2025 capital expenditure forecast Cash and committed financing1 ($ MILLION) ($ MILLION) • Retention of capital allowances in the Autumn Budget allows accelerated spend on resilience 294 • Capex guidance of $220-250 million 726 • Committed spend focused on the
Slide 21: Shareholder distributions a clear capital allocation priority
Shareholder Significant distributions cash returns a clear capital allocation priority to shareholders Shareholder returns attributable to calendar year (p/share) 25 20 • Proposed final dividend of 10p/share in respect of 15 2024 10 - Prudent reduction retains material dividend 5 - Sustainable in me
Slide 22: Catalysts ahead for the creation of value for shareholders
Catalysts ahead for the creation of value for shareholders High-grade and progress organic Increase operational efficiency and investment opportunities to deliver more predictable Value accretive M&A convert resources to reserves and production performance cash flow Organic growth can retain Product
Slide 23: For further information contact
For further information contact: Andrew.Benbow@serica-energy.com Half-yearresults Full-year Results2024 2024I 1I April 10 September 2025 2024 23
Slide 24: Financial risk management
Financial risk management Oil hedges 12 Oil hedges 10 (kbbls/d) Weighted Average Units Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 4 8 Put Net $/bbl - - - - - - - 6 Swap price $/bbl 68 75 75 75 75 - - 4 5 5 5 Collar floor net $/bbl 68 69 68 68 69 60 60 6 3 2 3 Total weighted average $/bbl 68 69 69 69