2025 full-year results

About this update from Serica Energy Plc

[{"type":"text","content":"\n \n \n   \n Serica Energy plc \n ('Serica' or 'the Company') \n Results for the year ended 31 December 2025 \n   \n London, 26 March 2026 - Serica Energy plc (AIM: SQZ), a leading British independent upstream oil and gas company with operations in the UK North Sea, today announces its audited financial results for the year ended 31 December 2025. The results are included below and copies are available at www.serica-energy.com and www.sedar.com . \n   \n Chris Cox, Serica's CEO, stated: \n \"Serica delivered positive strategic progress in 2025, significantly strengthening our portfolio and organisation, and positioning the Company for materially increased production and the delivery of future growth. Successful acquisitions mean that Serica will have an increasingly resilient and diversified portfolio, with production set to reach over 65,000 boepd by the end of 2026 as they all complete. Our production is generating material cash flows, enhanced further at current commodity prices, boosting our liquidity position and supporting our ability to allocate capital to both attractive growth opportunities and shareholder returns. Our disciplined capital allocation is focused on the short ‑ cycle, low ‑ risk opportunities in our portfolio. \n   \n Following our newly completed transaction with TotalEnergies we also operate strategic West of Shetland gas processing infrastructure serving one of the UKCS' most prospective hydrocarbon regions at a time when the importance of domestic gas supply is so starkly in focus. 2026 will be a year of further delivery on our strategy as we high ‑ grade and progress our organic growth opportunities, and deliver stronger, more reliable performance across a diversified asset base. Serica is better placed than ever to create sustainable value for shareholders and be an important contributor to the UK's energy security.\" \n   \n Results summary ($ million unless stated) \n \n \n \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Average realised Brent oil price ($/bbl) \n \n \n 67 \n \n \n 75 \n \n \n \n \n Average realised gas price (pence per therm) \n \n \n 84 \n \n \n 76 \n \n \n \n \n Production (boepd) \n \n \n 27,600 \n \n \n 34,600 \n \n \n \n \n Revenue \n \n \n 601 \n \n \n 727 \n \n \n \n \n Operating costs \n \n \n 366 \n \n \n 330 \n \n \n \n \n EBITDAX \n \n \n 210 \n \n \n 379 \n \n \n \n \n Cash Tax paid \n \n \n 9 \n \n \n 153 \n \n \n \n \n Adjusted CFFO less tax \n \n \n 187 \n \n \n 403 \n \n \n \n \n Capital expenditure \n \n \n 250 \n \n \n 278 \n \n \n \n \n Free cash flow \n \n \n (24) \n \n \n (1) \n \n \n \n \n Cash and restricted cash \n \n \n 31 \n \n \n 148 \n \n \n \n \n Total debt \n \n \n 231 \n \n \n 231 \n \n \n \n \n Net (debt) / cash \n \n \n (200) \n \n \n (83) \n \n \n \n \n Final dividend declared (pence per share) \n \n \n 10 \n \n \n 10 \n \n \n \n \n Dividends paid \n \n \n 85 \n \n \n 113 \n \n \n \n \n   \n   \n \n \n   \n Highlights \n Production set to rise materially over the course of 2026 \n ·    Production of 27,600 boepd in 2025 (2024: 34,600 boepd), impacted by unscheduled downtime at the Triton FPSO \n ·    Production year to date of 38,600 boepd, following a production interruption for further maintenance work at the Triton FPSO \n -     Production has averaged over 50,000 boepd since resumption from Triton on 9 March \n ·    Production from Serica's portfolio has the potential to exceed rates of 65,000 boepd by the end of 2026, once all acquisitions announced in 2025 have been completed \n   \n Successful M&A delivering increased production, cashflows, and growth opportunities \n ·      Announced four cash-generative acquisitions through 2025 at an attractive combined valuation of $3.3/boe per 2P boe of reserves \n ·      Acquisition of 40% of the Greater Laggan Area ('GLA'), West of Shetland, from TotalEnergies has now completed, with a net completion payment of $56 million received by Serica \n -     The acquisition adds production of just over 5,000 boepd from GLA net to Serica, as well as additional potential growth opportunities with the Glendronach tie-back and Tormore infills, while the strategic Shetland Gas Plant offers material value creation potential from owned and third-party business \n ·      The number of producing fields in the Serica portfolio is set to more than double once all acquisitions complete, significantly increasing the diversification, reliability and predictability of future production and revenues \n   \n Material increase in reserves and resources following completion of acquisitions \n ·      2P reserves of 116.8 mmboe as at end-2025 (end-2024: 118 mmboe), broadly evenly split between oil (58.9 mmboe) and gas (57.9 mmboe), following 2025 production of 10.4 mmboe \n -     Pro forma for the completion of acquisitions announced in 2025, 2P reserves increase 19% to 138.5 mmboe, of which 54% is gas \n ·      Acquisitions are gas weighted and add longer-life producing fields to the portfolio \n ·      2C resources increased 16% to 103.4 mmboe as at end-2025 (end-2024: 89 mmboe), driven by additional infill well opportunities at Bruce and the farm-in to the Wagtail licence \n -     Pro forma 2C resources of 112.6 mmboe, boosted by the inclusion of a 40% stake in Glendronach, as the Company grows its organic hopper materially through M&A   \n   \n Organic growth options have the potential to sustain and grow production well into the next decade \n ·      Market screening for a rig is currently underway with a view to drilling a programme of new wells targeting infills and tie-backs in the broader Serica portfolio, potentially to commence with infill drilling at the Bruce field in 2027. Low-risk new wells have the potential to add materially to production, with very short payback and highly attractive returns \n   \n Balance sheet strength and efficient tax position supports investment in growth and returns \n ·      Cash and restricted cash of $31 million (31 December 2024: $148 million) as at 31 December 2025 \n -     Total liquidity of $290 million, comprising cash, restricted cash and undrawn committed RBL facility availability as at 31 December 2025 of $259 million \n -     Borrowings of $231 million (31 December 2024: $231 million), resulting in a net debt position of $200 million as at 31 December 2025 \n -     Net debt position to more than halve in Q1, following receipt of $56 million from TotalEnergies \n ·      Group tax assets more than doubled in 2025, with a notional value of over $1 billion \n ·      L oss after taxation for 2025 of $52 million, following previously announced non-cash deferred tax charge of $65 million taken in Q1 2025 as a result of the extension of EPL to 2030 \n ·      Final dividend declared today of 10 pence per share (2024: 10 pence per share) subject to approval at Serica's 2026 AGM \n -     The final dividend is payable on 24 July 2026 to shareholders registered on 26 June 2026, with an ex-dividend date of 25 June 2026 \n   \n Outlook and guidance - significant uplift in production forecast \n ·    Unchanged guidance for 2026 production of significantly over 40,000 boepd \n ·    Capital expenditure guidance of $175-195 million and opex guidance of $380-400 million unchanged \n ·    Material free cash flow was forecast to be generated in 2026 even at an oil price of $63/bbl and gas price of 69p/therm, with cash generation significantly higher at current commodity prices \n -     Serica has been proactively and opportunistically building its hedge book mostly since early March, taking advantage of sharp increases in the front end of the curve in both oil and gas while bolstering downside protection \n ·    Completion processes for Catcher, Golden Eagle Area Development and Spirit Energy assets are on track and due to complete through the course of 2026 \n ·    The Company continues to be active, but highly selective, in screening a broad range of cash-generative and value accretive M&A opportunities, in both the UK North Sea and overseas \n ·    Serica remains committed to moving from AIM to the Main Market of the LSE at the earliest viable opportunity in 2026, which is now expected to be during Q3 \n   \n Regulatory \n This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'), and is disclosed in accordance with the company's obligations under Article 17 of MAR. \n   \n The technical information contained in the announcement has been reviewed and approved by Carla Riddell, Chief Technical Officer at Serica Energy plc. Ms. Riddell (B.Sc. Geology from University of Durham University, M.Sc. Palynology from University of Sheffield) has over 25 years of experience in oil & gas exploration, development and production and is a Fellow of the Geological Society of London and Energy Institute. \n   \n Enquiries: \n   \n \n \n \n \n Serica Energy plc \n \n \n +44 (0)20 7487 7300  \n \n \n \n \n Martin Copeland (CFO) / Andrew Benbow (Head of Investor Relations) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Peel Hunt (Nomad & Joint Broker) \n \n \n +44 (0)20 7418 8900 \n \n \n \n \n Richard Crichton / David McKeown / Emily Bhasin \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Jefferies (Joint Broker) \n \n \n +44 (0)20 7029 8000 \n \n \n \n \n Sam Barnett / Cameron Jones \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Vigo Consulting (PR Advisor)   \n \n \n +44 (0)20 7390 0230 \n \n \n \n \n Patrick d'Ancona \n \n \n [email protected]   \n \n \n \n \n   \n   \n Serica will host a live presentation on the Investor Meet Company platform today at 1000 GMT. The presentation is open to all existing and potential shareholders. Questions can be submitted at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Serica Energy plc via: https://www.investormeetcompany.com/serica-energy-plc/register-investor .   \n   \n Serica will host a Capital Markets Day in Q2, at which further details will be given on our exciting organic growth projects and on the medium-term capital allocation framework. \n   \n CHAIR'S STATEMENT \n I am pleased to introduce my third set of results as the Chair of Serica Energy, marking a year of positive strategic progress for the Company. These results are being published in the midst of significant volatility in the global oil and gas markets caused by the conflict in the Middle East. Serica has consistently argued for the importance of domestic energy, including vitally needed oil and gas, for a variety of reasons. The potential risks to supply reinforce this argument. Serica's role in producing UK oil and gas has expanded greatly over the last several years and, as described elsewhere in this report, the Company is pursuing options to do more. \n   \n The acquisitions we announced during the year will significantly enhance Serica going forward, adding materially to reserves, production, and cashflow, and reducing the reliance on two major producing hubs. The importance of such diversification was illustrated in 2025, as ongoing issues at the Triton FPSO again had a detrimental impact on the Company's production and results. Despite these issues, which represented a deferral of production and cash generation, I am confident that our strategic actions in 2025 have positioned Serica well to continue delivering for shareholders. In this light, as well as in the improved market context in which we find ourselves today, we are pleased to be able to maintain our proposed 10p final dividend for approval at our AGM. \n   \n Enhanced team, consistent focus \n As the Company grows, our strategy and focus remain consistent. \n   \n Serica is set to become a significantly larger company as our acquisitions complete, and oversight is provided by a stable Board and a management team of real quality. The additions to the Executive Leadership Team and other positions during 2026 result in a team with the experience and expertise to take the Company safely and successfully to the next level. \n   \n Our strategy for growth through both M&A and targeted investment continues, with the opportunity to build on the strengthened platform achieved in 2025. \n   \n A more robust company, well positioned to deliver \n Serica's strategy is based on applying our expertise to mid-to-late life assets, optimising production, and unlocking subsurface opportunities to extend field life and deliver value for shareholders. This is a two-pronged strategy, with value delivered by M&A through the acquisition of both new production assets and further organic opportunities, and enhanced by operational and subsurface expertise. \n   \n In 2025 we identified and executed multiple opportunities to carry out value accretive deals in the UK North Sea. The completed acquisition of Prax Upstream, and the associated deals which along with the acquisition of assets from Spirit Energy are set to complete in 2026, boosts our pro forma reserves by almost 20% and materially increases production. It also adds to our opportunity set, with an attractive number of investment opportunities now vying for capital allocation. \n   \n An area of our expanded portfolio that has tremendous potential is the operated West of Shetland hub, which combines sub-surface potential in the most prospective basin on the UK Continental Shelf, and will add infrastructure opportunities via the Shetland Gas Plant. This is personally pleasing, having worked in the basin extensively earlier in my career, going right back to the development of the Foinaven field. \n   \n At a time when it is becoming ever clearer how critical energy security is and that the UK requires all the homegrown hydrocarbons and especially gas that it can produce, we look forward to playing our part in maximising throughput in the Shetland Gas Plant, which - coming up to its 10 Year anniversary this year - represents a modern, strategically important, onshore landing point for gas entering the UK supply network. \n   \n \n \n   \n Actions needed to kick-start the UK North Sea \n In my statement last year, I reported that common sense UK Government policies for the North Sea would prioritise domestic production over imports. Regrettably, the merits of such an approach are being reinforced by the interruption to oil and gas supplies from the Middle East. Our thoughts are with all those affected by the situation. \n   \n I also wrote last year that confidence in the UK North Sea sector had been eroded. Since then, the Government has continued to solicit opinions and information through formal consultations and dialogue, which has been welcome, but this has not yet translated into actions which would support a world class and valuable industry. I take this opportunity, therefore, to repeat our request for a change in approach, to which end I offer a four-point plan. \n   \n Firstly, demonstrate a willingness to approve the development of new oil and gas fields. There are project approval decisions which could be made now and others to come over the next several months which would reduce the risks to the UK of future oil and gas crises and could even help with the current crisis if it is prolonged. \n   \n Secondly, revisit the decision not to award new exploration licences. There is significant untapped oil and gas potential on the UK Continental Shelf and companies like Serica are willing and able to take the financial risks of exploration. We do not ask for subsidies to undertake these activities. We only ask for the ability to do so at our own financial risk. \n   \n Thirdly, as soon as reasonably possible, replace the Energy Profits Levy with a permanent, properly designed mechanism for raising the level of tax on UK oil and gas production during periods of true 'windfall' prices. Much collaborative work by officials and the industry has already gone into the design of just such a tax in the form of the Oil and Gas Price Mechanism ('OGPM') intended to replace the EPL. Implementing this change would still see the Exchequer share fairly in windfalls caused by price shocks, but would be a huge step towards rebuilding confidence in the sector. \n   \n Finally, talk about the UK North Sea sector as a national asset; a longstanding source of economic value, world-class skills and immense pride amongst the people and communities involved. Too often in reports and ministerial statements, the sector is referred to in terms which imply irrelevance despite it being the single largest source of energy in the UK, or being less desirable than other sectors even though it supports some 200,000 jobs, many of which are highly skilled. The people working in the sector, or dependent on it across the country, deserve better. Moreover, a sector talked up rather than down will deliver more, benefiting the country as a whole.   \n   \n Maximising the benefits available to the UK from domestic oil and gas and achieving net zero by 2050 are not mutually exclusive objectives. Indeed, they complement each other, not least when oil and gas imported over thousands of miles typically comes with significantly higher emissions than the equivalent domestic production. \n   \n These facts are understood and are being acted upon by other oil and gas producing countries in western Europe. Amongst those countries, the UK holds the second largest resource of oil and gas. For the benefit of ourselves and regional security, we should exploit to the full that position of good fortune and much skill.               \n   \n Consistent strategy delivering value for shareholders \n As stated, our strategy remains unchanged. We are high-grading and maturing the increasing number of potential organic growth investments in our portfolio. Following the exceptional subsurface results of the five-well Triton drilling campaign completed in 2025, we are turning our attention to the Bruce and newly acquired West of Shetland hubs. More information on these will be provided at our Capital Markets Day in Q2. \n   \n At the same time, we are actively pursuing further opportunities to grow the Company, from transformational deals to smaller bolt-on acquisitions. We retain the belief that attractive acquisition opportunities will arise in the UK North Sea. As ever, however, our aim is the creation of shareholder value rather than size for the sake of it. Accordingly, while overseas entry has not been our focus during 2025, we continue to monitor potential openings. As we go forward, we will balance our capital allocation between acquisitions, organic growth, and direct shareholder returns - based on creating optimal value for shareholders. We are confident in our ability to continue delivering on this strategy. \n   \n After some 20 years on the AIM market, we also look forward to taking the natural next step in the Company's growth in moving to the Main Market of the London Stock Exchange later this year. This would have been completed in 2025, but rightfully M&A took priority. We believe that completing the move this year will add to Serica's visibility, taking our story to the widest audience possible. \n   \n ---------------------- \n   \n CHIEF EXECUTIVE OFFICER'S REVIEW \n Serica delivered a year of meaningful operational and strategic progress in 2025, adding assets that will diversify and enhance the Company, and underpinning our future success by strengthening organisational capability and renewing our commitment to optimising production. The foundations we laid over the past year position us well as we move into 2026. \n   \n Building capability to deliver on the opportunities ahead \n We are confident in our strategy, and confident that we have the right team to deliver it. When I joined there were certain gaps in the organisation that needed to be filled, and we have strengthened Serica's organisational capability to ensure we have people in place to support the Company's next phase of growth, while retaining our entrepreneurial culture. It was evident that the business required additional depth in several critical areas. Since then, we have made a number of targeted senior appointments across all areas that have materially improved our decision ‑ making, our talent management, and our ability to deliver for shareholders. \n   \n Serica is already seeing the benefits of an intensive effort on being set up to capitalise on M&A, and the team did a tremendous job in getting multiple acquisitions over the line last year. Across the business we are seeing improvements. The addition of a Chief People Officer has significantly improved how we manage and develop our people, and will be crucial as we integrate new personnel into the Company in 2026. Our Chief Technical Officer brings essential technical challenge and strategic insight into our portfolio planning, and with a new Head of Developments we have clear ownership and expertise when it comes to project prioritisation, transforming how we evaluate opportunities and how we deploy capital. \n   \n We have also formed a new group focused on our non-operated joint ventures, the most important of which is Triton, with Executive Leadership Team representation, recognising the increasing importance of this part of the business for us and the different skillsets and focus priorities needed to optimise value from non-operated assets. The business is growing, and our capability is growing with it and equipping us for further growth to come. \n   \n In operations, we have brought in new Offshore Installation Managers and additional technical capability to address gaps, strengthening our operational leadership and enhancing our production optimisation capability. \n   \n The result is a leadership team that is strategically aligned and better equipped to manage the scale and complexity of our enlarged asset base. The progress made in 2025 would not have been possible without these changes, and this team provides a strong platform for the delivery of improved performance in 2026 and beyond. \n   \n Increasing reliability \n A key area for us to tackle remains improving our operating performance, and I remain convinced that we can and will do better. We are working with the operator at Triton while at the Bruce Hub, asset uptime remains impressive, but more can be done to optimise production performance. We have shifted the organisation's mindset to focus more on operational excellence and chasing all avenues for increased production, investing when necessary - as improved operating practice not only means safer production, but also adding barrels in this way can easily deliver greater value than from more material capital allocation spend. \n   \n High performance cannot be delivered without appropriate resources, and the team has done some great work at the Bruce platform on reducing the maintenance backlog, improving and replacing key equipment and reducing single point failure risk - all steps necessary to allow us to operate the asset well into the next decade. That is what we believe the rocks around Bruce can deliver, as we move towards the next stage of Bruce's evolution - and a material increase in production. We are confident that our planned drilling campaign on Bruce (the first since 2012) will illustrate this potential, growing production and extending the life of field potentially until the end of the next decade. Work being done during 2026 will set us up for reliable long ‑ term performance as well as materially improving our emissions to ensure we maintain the necessary licence to operate. \n   \n A key theme across our operations is the exposure to single point failure in certain key systems, especially those that involve rotating equipment. It is impossible to avoid such exposure entirely, but we are making strenuous efforts - directly on our operated assets and indirectly on our non-operated assets - to reduce this risk. These efforts include parallel systems where feasible and financially justified, maintenance and predictive analysis. \n   \n Of course, production performance never outweighs safety, which remains and will always be our number one priority. In 2025 we significantly improved our process ‑ safety performance. At the same time, we recognised the need to re ‑ emphasise personal safety after an increase in thankfully minor eye and hand injuries , with three minor lost time injuries in the year our first for five years, and a reminder of the need for constant vigilance on all forms of safety. We have responded with targeted personal equipment upgrades and a renewed behavioural focus. Our safety goal for 2026 is simple and unchanged from before: no harm to our people. \n   \n Positive subsurface performance ongoing \n As with 2024, while our production performance was not satisfactory, our subsurface team continued to deliver tremendous results, demonstrating the strength of our underlying resource base and our human capital. The five-well drilling campaign at Triton, delivered ahead of schedule and under budget, was rounded off with successful wells at Evelyn and Belinda, although neither has yet to deliver their potential due to the Triton FPSO operational issues. With the full complement of wells in production, we are confident of maintaining Triton area production capacity of above 20,000 boepd net to Serica through 2027 at least. \n   \n Hitherto, the fact that we have not yet seen the benefits of the subsurface results is deeply frustrating and something we are working closely with the operator, Dana Petroleum, to address. The impact to date, however, is deferred production rather than lost production. The resource remains in place, and our immediate task is to ensure that the infrastructure is capable of bringing it to the surface. I said when I joined that it would be a two-year process to get to good operational performance. Nearly twenty-one months in, progress has been slower than I hoped. With the work that has been done on the FPSO since that time, however, I am confident that improved performance and the value that follows will come. \n   \n Improved operations at Triton and continued production optimisation at Bruce means, factoring in also production from the acquisitions as they complete during the year, we are well set to surpass production levels of 65,000 boepd towards the end of the year. \n   \n New assets supporting predictability \n O ur strategy is to build a diversified asset base that reduces dependence on any single asset. The consequent resilience and greater predictability of cash flow makes Serica more attractive to investors. New assets are an important component of that long ‑ term stability. Value from across our portfolio will come from increasing reliability, delivery, and taking advantage of opportunities ahead. Our new assets support all three. \n   \n Adding producing assets, with stable operations, provides greater confidence in production and earnings. In this regard, I look forward to the addition to our portfolio of fields with historically high-uptime and consistent delivery - our stake in the Cygnus field, with the acquisition of the asset portfolio from Spirit Energy set to complete around the start of Q4, being a good example. Greater diversification is greater strength.  \n   \n By their nature, E&P companies can never stand still, and Serica certainly will not. Reserves replacement was delivered in 2025 through adding material reserves and resources in acquisitions, and through progressing opportunities in the portfolio, with 2P reserves up 19% year-on-year on a pro forma basis. The resources from Kyle, now renamed Kyla, have matured to reserves, and that is one of a multitude of opportunities in our hopper, with the opportunity set available to us only increasing through new acquisitions in 2025. \n   \n Material growth potential in the portfolio \n The acquisition of the West of Shetland assets from TotalEnergies is set to add development opportunities at Glendronach and Tormore to our portfolio, and the Spirit Energy transaction will bring infill drilling potential at Cygnus, Clipper South, and GMA, to further bolster our subsurface opportunities. The more I see the output of our subsurface team, the more excitement I have regarding the opportunities available to us. The success of our drilling results around Triton only increases my confidence in what can be achieved when putting the same proven team of subsurface, wells and other functional experts to work across our expanded asset base. \n   \n Our technical and financial high ‑ grading process continues to evaluate these opportunities rigorously. We are focused on short ‑ cycle, low ‑ risk, high ‑ return projects that enhance returns and strengthen production stability. We will provide more details about this work at the Capital Markets Day in Q2. There is m aterial growth potential across the portfolio - and it is a welcome, but new challenge for Serica to have more opportunities than we have the financial and organisational capacity to deliver in parallel. With a combination of near ‑ term infill wells and optimisation opportunities, tiebacks, and long ‑ term development potential, we have a balanced opportunity set that I am confident can deliver over a number of years. \n   \n The long ‑ term opportunity set in our newly acquired, operated hub in the West of Shetland, offers great potential. The Shetland Gas Plant, which I was pleased to visit earlier this month, provides access to a material inventory of owned and third-party future gas developments. \n   \n The Shetland Gas Plant is the youngest onshore landing point for domestically produced gas, and the key export route capable of handling the next wave of gas developments in the region, positioning us at the heart of the UK's most prospective basin for future gas production. We are actively progressing commercial engagement with our partners in the area to ensure that the value of this strategic position is realised. This benefits us, Shetland and - through the supply of much needed gas - the UK as a whole. \n   \n M&A remains a central part of our two-pronged strategy. While we will maintain our position as a North Sea ‑ focused business, we continue to assess both domestic and selected international opportunities where the value case is strong and aligned to our operational strengths and core business model. Across all of these opportunities, our discipline remains the same: invest where the returns justify the capital, prioritise short ‑ cycle value creation, and ensure every project competes for funds. It is this discipline that has strengthened our portfolio and will drive shareholder value in the years ahead. \n   \n Delivering cash \n 2026 will be a pivotal year for Serica. The Company is set to generate material free cash flow and build our liquidity position, and we will complete the ranking of our organic opportunities and set out a clear, actionable plan for the allocation of available capital, in order to deliver on our exciting growth potential in coming years. Across our operations, the priority remains on improving production reliability, and embedding the operating discipline needed to sustain long ‑ term performance. Serica today is a more resilient company than it was a year ago, and we are taking the right steps to ensure we continue to grow and create value for our shareholders. \n   \n ---------------------- \n   \n REVIEW OF OPERATIONS \n Reserves and resources \n Serica's assets contained 116.8 mmboe of 2P oil and gas reserves net to the Company as of 31 December 2025 (31 December 2024: 117.5 mmboe), with production of 10.1 mmboe in 2025. The portfolio currently has a broadly even split between oil (58.9 mmboe) and gas (57.9 mmboe). \n   \n \n \n \n \n As at 31 December 2025 (mmboe) \n \n \n 2P 2025 [1] \n \n \n 2P 2025 \n pro forma [2] \n \n \n 2P 2024 \n \n \n 2C 2025 \n \n \n 2C 2025 pro forma \n \n \n 2C 2024 \n \n \n \n \n Bruce Hub \n \n \n 61.2 \n \n \n 61.2 \n \n \n 69.8 \n \n \n 55.8 \n \n \n 55.8 \n \n \n 33.3 \n \n \n \n \n Triton Hub \n \n \n 49.9 \n \n \n 49.9 \n \n \n 41.8 \n \n \n 18.5 \n \n \n 18.5 \n \n \n 16.4 \n \n \n \n \n West of Shetland \n \n \n 0.8 \n \n \n 4.8 \n \n \n - \n \n \n - \n \n \n 5.4 \n \n \n - \n \n \n \n \n Other Production Assets \n \n \n 4.9 \n \n \n 8.1 \n \n \n 5.9 \n \n \n 0.1 \n \n \n 0.4 \n \n \n 9.0 \n \n \n \n \n Southern North Sea \n \n \n - \n \n \n 14.4 \n \n \n - \n \n \n - \n \n \n 3.4 \n \n \n - \n \n \n \n \n Greater Buchan Area \n \n \n - \n \n \n - \n \n \n - \n \n \n 29.0 \n \n \n 29.0 \n \n \n 30.0 \n \n \n \n \n Total \n \n \n 116.8 \n \n \n 138.4 \n \n \n 117.5 \n \n \n 103.4 \n \n \n 112.6 \n \n \n 88.7 \n \n \n \n \n   \n Reserves replacement was robust in 2025, supported by 10.2 mmboe being moved into 2P reserves due to the maturation of the Kyla redevelopment. This effectively offset the 10.1 mmboe of production in the year. Minor revisions at the Bruce and Rhum fields also largely offset, and a small benefit is also booked from the addition of Lancaster via the acquisition of Prax Upstream. \n   \n Our attractive opportunity set is reflected in our material 2C resource position of 103.4 mmboe, up 16% from 88.7 mmboe as at the end of 2024. This increase was driven by preliminary work on the Bruce drilling programme, as additional infill well opportunities delivered an 18.2 mmboe increase in 2C resources. This outweighed the relinquishment of the Mansell licence (8.3 mmboe), and transfer of Kyla (8.5 mmboe) from resources to reserves. The addition of Wagtail through the farm-in to the UK North Sea P2530 Licence also provided an uplift of 8.0 mmboe of 2C resources. \n   \n As the TotalEnergies, ONE-Dyas, and Spirit Energy acquisitions complete, our reserves will see a significant uplift, with the acquired assets resulting in a 19% uplift to 138.4 mmboe. The acquisitions will also result in the portfolio being weighted slightly more towards gas, with 2P oil reserves of 63.2 mmboe and gas reserves of 75.3 mmboe meaning that 54% of portfolio reserves are gas. \n   \n The acquisition of 40% in the Glendronach licence, West of Shetland, is the key contributor to the increase in pro forma 2C resources. \n   \n Production net to Serica (boepd) \n   \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024  \n \n \n \n \n Bruce Hub \n \n \n 16,100 \n \n \n 19,800 \n \n \n \n \n Triton Hub \n \n \n 5,900 \n \n \n 9,000 \n \n \n \n \n Other Assets \n \n \n 5,300 \n \n \n 5,800 \n \n \n \n \n West of Shetland \n \n \n 300 \n \n \n - \n \n \n \n \n Total \n \n \n 27,600 \n \n \n 34,600 \n \n \n \n \n   \n   \n Bruce Hub \n Bruce - Blocks 9/8a, 9/9b and 9/9c, Serica 98% and operator \n Rhum - Blocks 3/29a, Serica 50% and operator \n Keith - Block 9/8a, Serica 100% \n Production at the Bruce Hub averaged 16,100 boepd in 2025 (2024: 19,800 boepd) net to Serica, below asset potential. Asset uptime over the year was robust, although production was limited through work on the productive R3 well in January, followed by maintenance work on the export pipeline, and the main oil line ('MOL') booster pump being offline and reducing the ability to enhance oil recovery through bull-heading operations (in which gas is pumped into a well to reduce back pressure and enhance production). \n   \n Activity on Bruce in 2026 is focused on enhancing reliability and the ability to deliver optimal well stock performance, leading to production increasing from 2025 levels. Work will also take place to support the extension of asset life that will allow the potentially material uplift in production volumes from new drilling on the Bruce field to be delivered in the years to come. The planned shutdown in Q3 is expected to last approximately 24 days. \n   \n There have been no wells drilled on the Bruce field since 2012. Following the development of a full field model, numerous infill drilling locations were identified. These have now been high-graded, with three opportunities prioritised on the western side of the field, providing the best opportunity for rapid tieback to the Bruce subsea and platform facilities. Market screening for a rig is currently underway, to enable drilling to begin in 2027. Given the continued availability of attractive capital allowances designed to support such investments, this investment would be highly tax-efficient and has the potential to deliver a material uplift in production from the Bruce field as well as to extend the life of the hub. \n   \n Triton Hub \n Bittern 64.63%, Evelyn 100%, Gannet E 100%, Guillemot West & North West 10%, Belinda 100% \n Production from the Triton Hub, operated by Dana Petroleum, averaged 5,900 boepd in 2025 (2024: 9,000 boepd) net to Serica, significantly below potential due to necessary maintenance work that took place on the Triton FPSO throughout the year. \n   \n From the end of January 2025 until July, extensive remediation work and modifications were carried out, with subsequent issues relating to the compression train and flare system resulting in significantly reduced production in Q3. Following the completion of this work, production rebounded strongly in November, averaging 25,300 boepd net to Serica prior to the planned subsea work starting on the Bittern export pipeline, which was completed as scheduled in mid-December. \n   \n After a solid start to 2026, production was shut in for a period of 24 days for emergent essential maintenance. Production resumed on 9 March. \n   \n The focus in 2026 continues to be working with the operator to increase reliability, optimising production through one compressor before potentially moving to twin compressor operations following a period of stability. \n   \n The operator of the Triton FPSO forecasts that the planned shutdown in Q3 will last for approximately 65 days. \n   \n Other Producing Assets \n Erskine - Blocks 23/26a (Area B) and 23/26b (Area B), Serica 18% \n The Erskine field produced consistently across 2025, delivering a rate of over 1,900 boepd net to Serica in 2025 (2024: 1,200 boepd). A late life compression project to extend the life of the has been deferred until 2027. \n   \n Columbus - Blocks 23/16f and 23/21a (part), Serica 75% (operator) \n Production at Columbus was steady in 2025, averaging 1,300 boepd (2024: 1,400 boepd) net to Serica.   \n   \n Orlando - Block 3/3b, Serica 100% \n Average Orlando field production in 2025 was 2,000 boepd (2024: 3,300 boepd) net to Serica. Storm damage to the host Ninian Central Platform in mid-January 2026 led to an outage until early March. \n   \n West of Shetland \n Lancaster , Serica 100% (operator) \n The acquisition of Prax Upstream was completed on 11 December 2025, from which time production from Lancaster was added to the Serica portfolio. The field has since produced at levels of around 6,000 boepd with high-uptime and is expected to remain around this level until production ceases. Bluewater, the FPSO operator, has now served notice on the Aoka Mizu FPSO, and production is expected to cease in May 2026, in line with expectations. \n   \n Organic growth assets \n Kyla (P2616), Serica (operator) 100% \n The Kyla Redevelopment, located in Block 29/2c, is a previously producing oilfield, 20 km southeast of Triton, shut-in in 2020 solely due to the decommissioning of the Banff FPSO host facility. A field development plan was submitted in February 2026, and the asset name accordingly changed from Kyle to Kyla in line with regulatory requirements. As plans for development have progressed, 10.2 mmboe of 2C resources have been matured to 2P reserves. Kyla can be produced via a single horizontal well tied-back to Triton via Bittern, similar to other Triton tie-backs.   \n   \n P2530, Serica 40% (operator) \n P2530 contains the Wagtail oil discovery and the low-risk Marsh and Bancroft exploration prospects.  Wagtail is situated north-west of the Triton FPSO, and development engineering feasibility studies are ongoing. The P2530 joint venture will then be in a position to decide whether to move onto the next licence phase and commit to drill an appraisal well, or relinquish the licence with no further commitments by 31 August 2026. \n   \n Greater Buchan Area - Blocks 20/5a, 205d, 21/1d & 21/1a, Serica 30% \n Buchan Horst is one of the largest remaining undeveloped fields on the UKCS, with an estimated 22.7 mmboe of 2C resources net to Serica, and the potential for 10,000 boepd peak net production. The development project would support an estimated 1,000 jobs in the UK. Serica continues to work closely with the joint venture partners to assess the project, retaining optionality over future development scenarios. \n   \n Skerryvore - Blocks 30/12c (part), 30/13c (split), 30/17h, 30/18c and 30/19c (part), Serica 70% working interest \n The P2400 Licence is located in the Central North Sea, 60 km south of the Erskine field. The commitment work programme includes drilling an exploration well on the Skerryvore prospect by the end of March 2027. With a primary target volume of up to 36 mmboe recoverable, an attractive estimated chance of success of 43%, and the potential to tieback into existing infrastructure, Serica continues to explore options relating to the timing of the well commitment. \n   \n Fynn Beauly - (P2634) Serica 50% \n A 50% interest in P2634 licence, containing the Fynn Beauly heavy oil discovery, was acquired when completing the acquisition of Parkmead (E&P) Limited in April 2025. The current licence commitment is limited to technical studies to assess potential development options.  \n   \n ---------------------- \n   \n F INANCIAL REVIEW \n Financial performance in 2025 was clearly significantly adversely impacted by the lower than expected production. In total, we estimate that around $250 million of revenue was deferred due to the unscheduled Triton outages, giving an illustration of what can be achieved when the portfolio is firing on all cylinders. Serica is well positioned and, with improved operational performance and a positive cash generation outlook especially in the current market context, is set to capitalise on the numerous opportunities ahead. \n   \n Serica continuously reviews its capital allocation, and investment in those areas that will create most value for shareholders. We have a portfolio that is set to generate material cash flow, we are excited about the opportunities we have on which this money can be spent, have confidence in the team in place, and will provide more details on our capital allocation framework that will support the delivery of sustainable shareholder value at our CMD in Q2. \n   \n There is of course a balance in spend on inorganic and organic growth, and the Company delivered value-accretive, cash-generative M&A in 2025, which will result in a net addition of over $50 million in cash as deals complete in 2026. We continue to assess a wide range of opportunities, both in the UK North Sea and selectively in other areas in which we can apply our strategy, as we seek to diversify the Company further and create additional value for shareholders. \n   \n   \n \n \n \n \n Summary Financial Information \n \n \n   \n \n \n Units \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Production and sales realised prices \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Production \n \n \n \n \n \n boepd \n \n \n 27,600 \n \n \n 34,600 \n \n \n \n \n Sales volumes \n \n \n \n \n \n mmboe \n \n \n 9.9 \n \n \n 12.2 \n \n \n \n \n Natural Gas (net of NTS system charges) \n \n \n \n \n \n p/th \n \n \n 84 \n \n \n 76 \n \n \n \n \n Crude Oil \n \n \n \n \n \n $/bbl \n \n \n 67 \n \n \n 75 \n \n \n \n \n NGLs \n \n \n \n \n \n $/MT \n \n \n 492 \n \n \n 491 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Income Statement \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Revenue \n \n \n \n \n \n $ million \n \n \n 601 \n \n \n 727 \n \n \n \n \n EBITDAX (1) \n \n \n \n \n \n $ million \n \n \n 210 \n \n \n 379 \n \n \n \n \n Profit before taxation \n \n \n \n \n \n $ million \n \n \n 80 \n \n \n 160 \n \n \n \n \n (Loss)/profit after taxation \n \n \n \n \n \n $ million \n \n \n (52) \n \n \n 92 \n \n \n \n \n Basic (loss)/earnings per share \n \n \n \n \n \n cents \n \n \n (13) \n \n \n 24 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other key financial figures \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Capital expenditure (1) \n \n \n \n \n \n $ million \n \n \n 250 \n \n \n 278 \n \n \n \n \n Operating cashflow \n \n \n \n \n \n $ million \n \n \n 180 \n \n \n 452 \n \n \n \n \n CFFO less current tax (1) \n \n \n \n \n \n $ million \n \n \n 180 \n \n \n 403 \n \n \n \n \n Dividends paid in year \n \n \n \n \n \n $ million \n \n \n 85 \n \n \n 113 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (1)  See Reconciliation of non-IFRS measures for further detail \n   \n \n \n \n \n \n \n \n   \n Production for 2025 averaged 27,600 boepd, compared to 34,600 boepd in 2024, with sales volumes of 9.9 mmboe (2024: 12.2 mmboe). The reduction was driven by a range of operational factors, but concentrated on the previously announced unscheduled outages experienced at the non-operated Triton hub during the year. \n   \n Realised prices were mixed year-on-year. Average natural gas realised prices (net of NTS system charges) were circa 10% higher at 84 pence per therm in 2025 (2024: 76 pence per therm), while average realised oil prices were down by just over 10% at $67/bbl (2024: $75/bbl) and NGL prices averaged $492/MT (2024: $491/MT). Overall revenue decreased to $601 million (2024: $727 million), reflecting the lower sales volumes, partially offset by stronger gas pricing and strengthening of sterling against the US dollar. \n   \n Reflecting the Company's largely fixed operating costs base, the revenue impacts were amplified at the profit level. EBITDAX decreased to $210 million in 2025 (2024: $379 million) and profit before taxation decreased to $80 million (2024: $160 million) with the 2025 outcome benefitting from $67 million of unrealised gains on hedging. Despite the pre-tax profit, the Group reported a loss after taxation of $52 million in 2025 (2024: profit of $92 million), driven by a total tax charge of $132 million (2024: $68 million), comprising $2 million of current tax (2024: $14 million) and $130 million of deferred tax charge (2024: $54 million). The deferred tax charge included a one-off non-cash deferred tax expense of $65 million as a result of the extension of the Energy Profits Levy to 31 March 2030 which was substantively enacted on 3 March 2025. Basic loss per share was 13 cents (2024: earnings per share 24 cents). \n   \n Operating cash flow was sharply reduced at $180 million (2024: $452 million), very largely reflecting lower profitability in the year. There was also a net cash tax receipt of $63 million comprising refunds of 2024 tax overpayments of $72 million net of $9 million cash tax paid in 2025. Capital expenditure, including decommissioning spend, was $250 million (2024: $278 million) as we completed the five well drilling programme at our Triton area assets. \n   \n Dividends to shareholders totalled $85 million (2024: $113 million) as the Company continued to deliver on its strategy of investing in growth and returns, despite a period of planned investment capex and notwithstanding the unplanned operational outages at Triton. \n   \n Sales revenues \n \n \n \n \n Revenue \n \n \n   \n \n \n Units \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Total revenue \n \n \n   \n \n \n $ million \n \n \n   \n \n \n 601 \n \n \n 727 \n \n \n \n \n Gas Sales \n \n \n \n \n \n $ million \n \n \n \n \n \n 361 \n \n \n 375 \n \n \n \n \n Crude Oil \n \n \n \n \n \n $ million \n \n \n \n \n \n 219 \n \n \n 317 \n \n \n \n \n NGLs \n \n \n \n \n \n $ million \n \n \n \n \n \n 21 \n \n \n 35 \n \n \n \n \n   \n Total 2025 sales revenue was $601.4 million, compared to 2024 sales revenue of $727.2 million and to 2023 pro forma sales revenue of $917 million. The decrease was largely driven by lower sales volumes. This was partially offset by higher NBP market prices and realised gas prices. \n   \n Sales comprised marginally lower gas revenue of $360.9 million (2024: $374.7 million) with volume reductions partially offset by higher average prices, and the strengthening of the sterling against the US dollar but markedly lower oil revenue of $219.0 million based on lower production compounded by lower realised oil prices (2024: $317.5 million) and NGL revenue of $21.5 million (2024: $35.0 million) with the reduction driven by lower volumes. \n   \n Total product sales volumes for the period comprised 326.9 million therms of gas (2024: 386.7 million therms), 3.3 million lifted barrels of oil (2024: 4.2 million barrels), and 43,705 metric tonnes of NGLs (2024: 70,872 metric tonnes). This amounted to overall sales volumes some 2.3 million boe lower in the period of 9.9 million boe (2024: 12.2 million) and down 4.5 million boe as compared with the 2023 pro forma volumes. \n   \n Gross profit \n Gross profit for 2025 was $64.7 million compared to $223.2 million for 2024. Cost of sales was $536.7 million (2024: $504.0 million), comprising $374.6 million of field operating and lifting costs (2024: $337.3 million), movements in oil over/underlift charge of $9.7 million (2024: income of $20.6 million), $158.1 million of non-cash depletion charges (2024: $187.3 million), partially offset by movement in oil inventory income of $5.7 million (2024: $nil). \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Cost of sales \n \n \n   \n \n \n Units \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Total operating costs \n \n \n   \n \n \n $ million \n \n \n   \n \n \n 537 \n \n \n 504 \n \n \n \n \n Field operating costs \n \n \n \n \n \n $ million \n \n \n \n \n \n 367 \n \n \n 330 \n \n \n \n \n Lifting costs/other \n \n \n \n \n \n $ million \n \n \n \n \n \n 8 \n \n \n 8 \n \n \n \n \n Movement in over / underlift \n \n \n $ million \n \n \n \n \n \n 10 \n \n \n (21) \n \n \n \n \n Movement in oil inventory \n \n \n $ million \n \n \n \n \n \n (6) \n \n \n - \n \n \n \n \n DD&A \n \n \n \n \n \n $ million \n \n \n \n \n \n 158 \n \n \n 187 \n \n \n \n \n   \n The increase in total operating costs was driven by an increase in field operating costs, primarily reflecting increased maintenance activity at the Bruce platform to reduce maintenance backlogs and improving reliability of the Bruce hub, on top of the fact that a significant proportion of the operating cost base is fixed in nature and consequently does not reduce proportionally to the reduced production and revenues. These effects were compounded by the strengthening of sterling against the US dollar, as most of the Group's operating costs are GBP-denominated. The decrease in non-cash DD&A of $29 million was the direct impact of the lower production levels during 2025, and was largely offset by an increase in the charge relating to movements in over/underlift and inventory of $25 million. \n   \n EBITDAX, operating profit before net finance costs and tax \n EBITDAX for 2025 was $210 million (2024: $379 million). \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Operating profit to EBITDAX (1) \n \n \n Units \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Operating profit \n \n \n $ million \n \n \n 112 \n \n \n 186 \n \n \n \n \n Add back DD&A and depreciation \n \n \n $ million \n \n \n 159 \n \n \n 188 \n \n \n \n \n Add back E&E costs \n \n \n $ million \n \n \n 1 \n \n \n 2 \n \n \n \n \n (Deduct) /add back unrealised hedging \n \n \n $ million \n \n \n (67) \n \n \n 32 \n \n \n \n \n Deduct contract revenue - other \n \n \n $ million \n \n \n (5) \n \n \n (31) \n \n \n \n \n Add back /(deduct) transaction costs and other \n \n \n $ million \n \n \n 6 \n \n \n (2) \n \n \n \n \n Add back share-based payments \n \n \n $ million \n \n \n 4 \n \n \n 4 \n \n \n \n \n EBITDAX (1) \n \n \n $ million \n \n \n 210 \n \n \n 379 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n (1) See Reconciliation of non-IFRS measures for further detail. \n   \n \n \n \n \n   \n Operating profit for 2025 was $112.0 million compared to $186.5 million for 2024.  \n   \n Net hedging income of $75.2 million (2024: $43.5 million expense) comprised unrealised hedging gains of $67.4 million (2024: losses of $31.8 million) and realised hedging gains of $7.8 million (2024: $11.7 million losses). Unrealised hedging gains arose from the non-cash movement in the valuation of commodity hedge positions at the year end, with the main contributor being mark-to-market movements on gas price derivatives, largely in the form of zero cost collars, entered into during 2024 and 2025 to manage commodity price risks and to comply with minimum hedging requirements for periods extending to the end of 2027 under the Group's RBL facility. Realised hedging gains during 2025 primarily related to in the money oil and gas swaps and collars. \n   \n Contract revenue of $5.4 million (2024: $31.3 million) arose from the final unwind of an underlying revenue offtake contract that was fair valued in connection with the Tailwind acquisition in 2023. An original liability of $66.7 million was recognised which has been released to the Income Statement across 2023, 2024 and 2025 as the underlying contract unwound. \n   \n Administrative expenses for 2025 of $23.1 million compared to $21.6 million for 2024, reflecting increased costs on M&A-related activities and in preparation for the planned move to the Main Market during the year, with payroll and contractor costs increases offset by allocation of costs to operations. \n   \n Profit before taxation and profit after taxation for the period \n Profit before taxation for 2025 of $80.3 million (2024: $160.5 million) included a $2.5 million charge arising from an increase in the fair value of financial liabilities (2024: $2.5 million charge), and net finance costs of $29.2 million of finance costs (2024: $23.5 million). \n   \n Finance revenue of $6.1 million (2024: $13.9 million) primarily represented interest income earned on cash deposits and decreased due to lower average cash balances held in the period and lower interest rates compared to 2024. Finance costs of $35.3 million (2024: $37.4 million) included interest payable and other financing fees on the RBL facility, as well as the non-cash discount unwind on decommissioning provisions and other minor finance costs. The decrease reflects the impact of lower interest rates during 2025 with the drawn balance under the Group's RBL remaining at similar levels for both prior and current year. \n   \n The 2025 taxation charge of $132.2 million (2024: charge of $68.1 million) comprised current tax charges of $1.8 million (2024: $13.9 million) and a deferred tax charge of $130.4 million (2024: $54.2 million). Current tax was minimal and reflected adjustments in respect of prior years as current year taxable income was fully sheltered by group relief impacts of tax losses within the Group, primarily due to the Triton hub outages as well as the application of capital allowances against the EPL charges resulting primarily from significant capital expenditure on the Belinda and Evelyn fields. The high deferred tax charge is a combination of higher deferred tax charge due to the accounting impact of the enactment of the extension of the EPL to 2030 during the year, as well as incorporating the impact of utilisation of current year tax losses for group relief. \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Reported and Effective tax rate \n \n \n Units \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Profit before tax \n \n \n $ million \n \n \n 80 \n \n \n 160 \n \n \n \n \n Current tax \n \n \n $ million \n \n \n 2 \n \n \n 14 \n \n \n \n \n Deferred tax charge \n \n \n $ million \n \n \n 130 \n \n \n 54 \n \n \n \n \n Tax charge for the period \n \n \n $ million \n \n \n 132 \n \n \n 68 \n \n \n \n \n Book tax rate \n \n \n \n \n \n 165% \n \n \n 42% \n \n \n \n \n Applicable ring-fence aggregate tax rate \n \n \n \n \n \n 78% \n \n \n 75.5% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Overall, the Group reported a loss after taxation for 2025 of $51.8 million (which included a one-off non-cash deferred tax charge of $65 million) compared to a profit after taxation of $92.4 million for 2024. This resulted in a loss per share of 13 cents (2024: earnings per share of 24 cents) after taking into account the weighted average number of ordinary shares in issue. \n   \n GROUP BALANCE SHEET \n The Group maintained access to its reserve-based lending ('RBL') facility and together with its cash reserves and cash generated in the year, was able to utilise its access to liquidity to fund ongoing capital investment, while continuing to support shareholder returns. \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Assets \n \n \n 31 December 2025 \n \n \n 31 December 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n E&E \n \n \n 43 \n \n \n 20 \n \n \n \n \n PP&E \n \n \n 1,156 \n \n \n 992 \n \n \n \n \n Goodwill \n \n \n 56 \n \n \n - \n \n \n \n \n Deferred tax asset \n \n \n - \n \n \n 55 \n \n \n \n \n Inventories \n \n \n 31 \n \n \n 15 \n \n \n \n \n Trade and other receivables, financial assets \n \n \n 201 \n \n \n 164 \n \n \n \n \n Corporate tax receivable \n \n \n 13 \n \n \n 71 \n \n \n \n \n Cash & cash equivalents and restricted cash \n \n \n 31 \n \n \n 148 \n \n \n \n \n Total Assets \n \n \n 1,531 \n \n \n 1,465 \n \n \n \n \n   \n \n \n \n \n \n   \n   \n \n \n \n \n Equity and liabilities \n \n \n 31 December 2025 \n \n \n 31 December 2024 \n \n \n \n \n   \n \n \n  $ million \n \n \n  $ million \n \n \n \n \n Equity \n \n \n 670 \n \n \n 797 \n \n \n \n \n RBL borrowings, drawn amounts \n \n \n 231 \n \n \n 231 \n \n \n \n \n RBL unamortised fees \n \n \n (10) \n \n \n (12) \n \n \n \n \n Provisions \n \n \n 252 \n \n \n 146 \n \n \n \n \n Financial liabilities \n \n \n 94 \n \n \n 124 \n \n \n \n \n Deferred tax liability \n \n \n 77 \n \n \n - \n \n \n \n \n Contract liabilities \n \n \n - \n \n \n 5 \n \n \n \n \n Trade and other payables, lease liabilities \n \n \n 217 \n \n \n 174 \n \n \n \n \n Total Equity and Liabilities \n \n \n 1,531 \n \n \n 1,465 \n \n \n \n \n   \n Exploration and evaluation asset increased from $20 million in 2024 to $43 million in 2025. This was primarily driven by (i) the acquisition of Parkmead E&P in April 2025, which was accounted for as an asset acquisition and resulted in $19.4 million of E&E additions primarily associated with the increase in Serica's stake in the Skerryvore field from 20% to 70%, and (ii) ongoing expenditure of $4.0 million on the planned redevelopment of the Kyla field. Following the reclassification of the Kyla asset from 2C resources to 2P reserves, the related $4.7 million E&E asset was transferred to oil and gas assets within property, plant and equipment. \n   \n Property, plant and equipment increased from $991.6 million at year end 2024 to $1,155.7 million at 31 December 2025. Additions comprised capital expenditure during 2025, including accruals, of $258.2 million primarily across the Triton Area ($218.5 million) and BKR ($36.1 million) asset hubs. The Triton area included capital expenditure on new wells drilled on the Belinda field ($110.9 million), Evelyn field ($46.2 million), pipeline replacement investment on the Bittern field ($35.2 million) and Triton FPSO life extension works ($26.2 million). These were partly offset by depletion charges for 2025 of $158.1 million (2024: $187.3 million). \n   \n Serica also completed the acquisition of Prax Upstream Limited ('Prax Upstream') on 11 December 2025 which is consolidated into the Group's results from that date. The Prax Upstream acquisition has been accounted as a business combination in accordance with IFRS 3, with the excess of the purchase consideration over the provisional fair value of the identifiable net assets acquired and liabilities assumed on the acquisition being recognised as provisional goodwill of $56 million in the 2025 balance sheet. The provisional fair value recognised at the acquisition date is based on information available as at the acquisition date, and reflects only the assets and liabilities that Serica controlled at that date. As a result, this accounting treatment does not reflect potential value (including the realisation of anticipated synergies) from future events. Since existing SPAs (to acquire a 40% working interest in the Greater Laggan Area from TotalEnergies as well as small stakes in Catcher and Golden Eagle from One Dyas) had been signed by Prax Upstream but not completed at the date of acquisition, they are treated as future events and therefore excluded from the determination of fair value. Management consequently considers that the provisional goodwill primarily represents expected future economic benefits from post-acquisition developments, including those expected to arise on completion of the existing SPAs including the prospective benefits associated with utilisation of tax assets acquired as part of Prax Upstream. \n   \n The Balance Sheet deferred tax position moved from a net deferred tax asset of $55.1 million at 31 December 2024 to a net deferred tax liability of $77.1 million at 31 December 2025. The overall swing in deferred tax of $132.2 million largely arose from increased deferred tax liabilities of $168.2 million on higher PP&E balances following significant recent capital expenditure on new wells in the Triton fields, compounded by the accounting impact of enactment during the year of the extension of the EPL from 2028 to 2030, as well as deferred tax liabilities of $52.4 million on movements in the mark-to-market position of commodity derivatives. These were partly offset by increased deferred tax assets of $72.0 million recognised in respect of higher loss carried forward and investment allowance balances and increased deferred tax assets of $19.7 million on higher decommissioning provision at the year end. \n   \n Following acquisitions, tax losses more than doubled in 2025, totalling $2.2 billion of ring fence Corporation Tax losses (end-2024: $1.2 billion), $1.9 billion of Supplementary Charge losses (end-2024: $1.0 billion), and $0.5 billion of Energy Profits Levy ('EPL') losses (end-2024: $156 million). Tax assets are held in entities across the portfolio, with the exception of Serica Energy (UK) Limited, where the holding in the Bruce Hub creates scope for tax-efficient investment. \n   \n The decrease in cash and restricted cash balances from $148.5 million at 31 December 2024 to $30.9 million at 31 December 2025 reflected cash flow from operations of $180.0 million supplemented by net $63.4 million of cash tax receipts and $14.3 million of net cash and restricted cash acquired on completion of Prax Upstream Limited, and offset by capital and abandonment expenditures paid of $250.1 million, net finance costs paid of $20.4 million, $84.9 million of dividend payments, $11.7 million paid for the acquisition of Parkmead E&P Limited and $10.1 million for the purchase of own shares in the Employee Benefit Trust undertaken at an average price of 171p per share, to meet expected awards. \n   \n Trade and other payables increased to $217.4 million at 31 December 2025 from $173.5 million at the end of 2024, largely reflecting payable balances of Prax Upstream of $28.4 million. The UK corporation tax receivable of $13.0 million at 31 December 2025 (31 December 2024: $71.0 million receivable) reflects a recovery of overpayments of corporation tax, supplementary charge, and the EPL in respect of 2025 resulting primarily from the application of group tax relief. \n   \n Net derivative financial assets of $29.9 million at 31 December 2025 represent the mark to market valuation of gas and oil hedging swap and collar products in place at the year end. This is in contrast to net derivative financial liabilities of $37.2 million at 31 December 2024. The swing from net liabilities to net assets is largely the result of the accounting impact of the fall in gas forward curve prices over the period of the hedges from 2024 to 2025, since most of the hedges in place at the Balance Sheet date were gas hedges. \n   \n Contract liabilities fell to $nil at 31 December 2025 (31 December 2024: $5.4 million) as we expensed the final outstanding portion of an underlying revenue offtake contract that was fair valued in connection with the Tailwind acquisition in March 2023. \n   \n Non-current financial liabilities of $89.8 million (31 December 2024: $81.9 million) comprise remaining contingent consideration projected to be paid under the BKR acquisition agreements of $60.2 million (31 December 2024: $49.7 million), royalty liabilities of $24.8 million (31 December 2024: $32.2 million) for amounts payable to third parties under the terms of Triton asset acquisitions previously made by Tailwind and deferred consideration relating to the Parkmead acquisition of $4.8 million. \n   \n Provisions of $252.3 million (31 December 2024: $146.0 million) predominantly relate to decommissioning obligations and comprise current balances of $17.5 million (31 December 2024: $nil million) and non-current balances of $233.8 million (31 December 2024: $146.0 million). The increase from 2024 reflects a combination of additions to the decommissioning provision in relation to the new Belinda and Evelyn wells of $32.0 million, decommissioning provision related to the Lancaster field of $56.4 million assumed on the acquisition of Prax Upstream and other movements of $17.9 million. \n   \n Interest bearing loans of $221.5 million at 31 December 2025 represent drawn amounts of $231.0 million net of unamortised facility fees of $9.5 million under the $525 million RBL facility entered into in January 2024. \n   \n Overall, net assets have decreased from $796.5 million at year end 2024 to $669.6 million at 31 December 2025. \n   \n CASH BALANCES AND FUTURE COMMITMENTS \n Current cash position and price hedging \n At 31 December 2025 the Group held adjusted net debt of $200 million as compared to adjusted net cash of $83 million at 31 December 2024. \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Adjusted Net Debt \n \n \n 31 December 2025 \n \n \n 31 December 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Interest bearing loan \n \n \n (221) \n \n \n (219) \n \n \n \n \n Add back unamortised fees \n \n \n (10) \n \n \n (12) \n \n \n \n \n Cash & cash equivalents \n \n \n 19 \n \n \n 148 \n \n \n \n \n Restricted cash \n \n \n 12 \n \n \n - \n \n \n \n \n Adjusted Net Debt \n \n \n (200) \n \n \n (83) \n \n \n \n \n   \n As at 20 March 2026, the Company held Adjusted Net Debt of $152 million. \n   \n   \n Hedging \n Serica carries out hedging activity to manage commodity price risk, to meet its contracted arrangements under its RBL facility and to ensure there is sufficient funding for future capital allocation objectives. Serica held the following instruments in respect of 2026 and 2027 for its existing assets as at 20 March 2026: \n   \n \n \n   \n Oil hedges \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n 2026 \n \n \n   \n \n \n   \n \n \n 2027 \n \n \n   \n \n \n \n \n Weighted Average: \n \n \n Units \n \n \n Q1-26 \n \n \n Q2-26 \n \n \n Q3-26 \n \n \n Q4-26 \n \n \n Q1-27 \n \n \n Q2-27 \n \n \n Q3-27 \n \n \n Q4-27 \n \n \n \n \n Swap price \n \n \n $/bbl \n \n \n 80 \n \n \n 68 \n \n \n 68 \n \n \n 68 \n \n \n 0 \n \n \n 0 \n \n \n 0 \n \n \n 0 \n \n \n \n \n Collar floor net \n \n \n $/bbl \n \n \n 64 \n \n \n 60 \n \n \n 60 \n \n \n 63 \n \n \n 62 \n \n \n 63 \n \n \n 63 \n \n \n 63 \n \n \n \n \n Total weighted average \n \n \n $/bbl \n \n \n 73 \n \n \n 62 \n \n \n 62 \n \n \n 63 \n \n \n 62 \n \n \n 63 \n \n \n 63 \n \n \n 63 \n \n \n \n \n Collar ceiling \n \n \n $/bbl \n \n \n 76 \n \n \n 72 \n \n \n 71 \n \n \n 72 \n \n \n 71 \n \n \n 71 \n \n \n 71 \n \n \n 71 \n \n \n \n \n Hedged Volume \n \n \n Kboe/d \n \n \n 18 \n \n \n 17 \n \n \n 15 \n \n \n 23 \n \n \n 19 \n \n \n 16 \n \n \n 15 \n \n \n 15 \n \n \n \n \n   \n   \n Gas hedges \n \n \n \n \n \n \n \n \n \n \n   \n \n \n 2026 \n \n \n   \n \n \n   \n \n \n 2027 \n \n \n   \n \n \n \n \n Weighted Average: \n \n \n Units \n \n \n Q1-26 \n \n \n Q2-26 \n \n \n Q3-26 \n \n \n Q4-26 \n \n \n Q1-27 \n \n \n Q2-27 \n \n \n Q3-27 \n \n \n Q4-27 \n \n \n \n \n Swap price \n \n \n p/therm \n \n \n 94 \n \n \n 0 \n \n \n 0 \n \n \n 0 \n \n \n 0 \n \n \n 0 \n \n \n 0 \n \n \n 0 \n \n \n \n \n Collar floor net \n \n \n p/therm \n \n \n 83 \n \n \n 63 \n \n \n 61 \n \n \n 71 \n \n \n 71 \n \n \n 56 \n \n \n 56 \n \n \n 62 \n \n \n \n \n Total weighted average \n \n \n p/therm \n \n \n 85 \n \n \n 63 \n \n \n 61 \n \n \n 71 \n \n \n 71 \n \n \n 56 \n \n \n 56 \n \n \n 62 \n \n \n \n \n Collar ceiling \n \n \n p/therm \n \n \n 139 \n \n \n 96 \n \n \n 93 \n \n \n 121 \n \n \n 121 \n \n \n 62 \n \n \n 62 \n \n \n 85 \n \n \n \n \n Hedged Volume \n \n \n Kboe/d \n \n \n 8 \n \n \n 10 \n \n \n 9 \n \n \n 8 \n \n \n 8 \n \n \n 7 \n \n \n 7 \n \n \n 7 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n Field and other capital commitments \n Serica's planned 2026 investment programme includes further capital work on the Bruce facilities and Triton FPSO. \n   \n At 31 December 2025, the Group had commitments for future capital expenditure relating to its oil and gas properties which relate primarily to projects being undertaken to increase the operational lifetime of both the Bruce and Triton hubs. The Group's only significant exploration commitment work programme includes drilling an exploration well on the Licence P2400 (Skerryvore) prospect regarding which, given the lack of clarity regarding the future fiscal and licensing regime, the licence was extended to 31 March 2027. \n   \n Cash projections are run periodically to examine the potential impact of extended low oil and gas prices as well as possible production interruptions. Serica currently has substantial net cash resources and relatively low operating costs per boe which means that the Company is well placed to withstand such risks and its capital commitments can be funded from existing cashflow in most scenarios. \n   \n OTHER \n Asset values \n At 31 December 2025, Serica's market capitalisation stood at $925.3 million based upon a share price of 174.8 pence which exceeded the net asset value of $669.6 million. By 24 March 2026 the Company's market capitalisation, based on a share price of 252.0p, had increased to $1,329 million. \n   \n \n \n   \n   \n   \n \n \n \n \n Serica Energy plc \n \n \n \n \n \n \n \n \n \n \n \n \n \n Group Income Statement \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the year ended 31 December 2025 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n Note \n \n \n $000 \n \n \n $000 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sales revenue \n \n \n 4 \n \n \n 601,429 \n \n \n 727,178 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cost of sales \n   \n \n \n 5 \n \n \n (536,689) \n \n \n (503,981) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross profit \n \n \n \n \n \n 64,740 \n \n \n 223,197 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Hedging income/(expense) \n \n \n 16 \n \n \n 75,166 \n \n \n (43,474) \n \n \n \n \n Contract revenue - other \n \n \n 16 \n \n \n 5,408 \n \n \n 31,292 \n \n \n \n \n Exploration and pre-licence costs \n \n \n \n \n \n (1,100) \n \n \n (1,595) \n \n \n \n \n E&E asset write-offs \n \n \n 12 \n \n \n (147) \n \n \n (851) \n \n \n \n \n General and administrative expenses \n \n \n 6 \n \n \n (23,075) \n \n \n (21,601) \n \n \n \n \n Transaction costs \n \n \n 29 \n \n \n (5,533) \n \n \n - \n \n \n \n \n Foreign exchange gain \n \n \n \n \n \n 38 \n \n \n 3,234 \n \n \n \n \n Share-based payments \n \n \n 25 \n \n \n (3,523) \n \n \n (3,735) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Operating profit before net finance costs \n \n \n \n \n \n 111,974 \n \n \n 186,467 \n \n \n \n \n and tax \n \n \n \n \n \n \n \n \n \n \n \n \n \n Change in fair value of financial liabilities \n \n \n 19 \n \n \n (2,471) \n \n \n (2,538) \n \n \n \n \n Finance revenue \n \n \n 8 \n \n \n 6,102 \n \n \n 13,927 \n \n \n \n \n Finance costs \n \n \n 8 \n \n \n (35,262) \n \n \n (37,358) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit before taxation \n \n \n \n \n \n 80,343 \n \n \n 160,498 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Taxation charge for the year \n \n \n 9 \n \n \n (132,165) \n \n \n (68,069) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (Loss)/profit for the year \n \n \n \n \n \n (51,822) \n \n \n 92,429 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (Loss)/profit for the year attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity owners of the Company \n \n \n \n \n \n (51,822) \n \n \n 92,429 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n (Loss)/earnings per ordinary share - EPS \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic EPS on (loss)/profit for the year ($) \n \n \n 10 \n \n \n (0.13) \n \n \n 0.24 \n \n \n \n \n Diluted EPS on (loss)/profit for the year ($) \n \n \n 10 \n \n \n (0.13) \n \n \n 0.23 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n Serica Energy plc \n Group Statement of Comprehensive Income \n For the year ended 31 December 2025 \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n \n \n \n $000 \n \n \n $000 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (Loss)/profit for the year \n \n \n \n \n \n \n \n \n (51,822) \n \n \n 92,429 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other comprehensive profit/(loss) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that may be subsequently reclassified to income statement: \n \n \n \n \n \n \n \n \n \n \n Exchange differences on translation \n \n \n \n \n \n \n \n \n 15,909 \n \n \n (5,217) \n \n \n \n \n Other comprehensive profit/(loss) for the year \n \n \n \n \n \n \n \n \n 15,909 \n \n \n (5,217) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Total comprehensive (loss)/profit for the year \n \n \n \n \n \n \n \n \n (35,913) \n \n \n 87,212 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive (loss)/profit attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity owners of the Company \n \n \n \n \n \n \n \n \n (35,913) \n \n \n 87,212 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Serica Energy plc \n Registered Number: 05450950 \n Group Balance Sheet \n As at 31 December 2025 \n \n \n \n \n \n \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n Note \n \n \n $000 \n \n \n $000 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Exploration & evaluation assets \n \n \n 12 \n \n \n 43,283 \n \n \n 20,367 \n \n \n \n \n Property, plant and equipment \n \n \n 13 \n \n \n 1,155,716 \n \n \n 991,588 \n \n \n \n \n Goodwill \n \n \n 29 \n \n \n 56,497 \n \n \n - \n \n \n \n \n Derivative financial assets \n \n \n 16 \n \n \n 5,667 \n \n \n - \n \n \n \n \n Deferred tax asset \n \n \n 9 \n \n \n - \n \n \n 55,139 \n \n \n \n \n \n \n \n \n \n \n 1,261,163 \n \n \n 1,067,094 \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Inventories \n \n \n 14 \n \n \n 31,423 \n \n \n 14,884 \n \n \n \n \n Trade and other receivables \n \n \n 15 \n \n \n 170,993 \n \n \n 158,117 \n \n \n \n \n Corporate tax receivable \n \n \n \n \n \n 13,026 \n \n \n 71,013 \n \n \n \n \n Derivative financial assets \n \n \n 16 \n \n \n 24,260 \n \n \n 5,185 \n \n \n \n \n Restricted cash \n \n \n 17 \n \n \n 12,060 \n \n \n - \n \n \n \n \n Cash and cash equivalents \n \n \n 17 \n \n \n 18,840 \n \n \n 148,460 \n \n \n \n \n \n \n \n \n \n \n 270,602 \n \n \n 397,659 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n TOTAL ASSETS \n \n \n \n \n \n 1,531,765 \n \n \n 1,464,753 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 18 \n \n \n 211,646 \n \n \n 168,287 \n \n \n \n \n Derivative financial liabilities \n \n \n 16 \n \n \n - \n \n \n 31,185 \n \n \n \n \n Contract liabilities \n \n \n 16 \n \n \n - \n \n \n 5,408 \n \n \n \n \n Financial liabilities \n \n \n 19 \n \n \n 4,140 \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n 26 \n \n \n 2,308 \n \n \n 1,418 \n \n \n \n \n Provisions \n \n \n 20 \n \n \n 18,712 \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Derivative financial liabilities \n \n \n 16 \n \n \n - \n \n \n 11,201 \n \n \n \n \n Financial liabilities \n \n \n 19 \n \n \n 89,756 \n \n \n 81,923 \n \n \n \n \n Deferred tax liability \n \n \n 9 \n \n \n 77,132 \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n 26 \n \n \n 3,415 \n \n \n 3,769 \n \n \n \n \n Provisions \n \n \n 20 \n \n \n 233,594 \n \n \n 145,974 \n \n \n \n \n Interest bearing loans \n \n \n 21 \n \n \n 221,488 \n \n \n 219,130 \n \n \n \n \n TOTAL LIABILITIES \n \n \n \n \n \n 862,191 \n \n \n 668,295 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n NET ASSETS \n \n \n \n \n \n 669,574 \n \n \n 796,458 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n 23 \n \n \n 245,715 \n \n \n 245,537 \n \n \n \n \n Merger reserve \n \n \n 23 \n \n \n 286,590 \n \n \n 286,590 \n \n \n \n \n Other reserve \n \n \n 25 \n \n \n 41,063 \n \n \n 37,540 \n \n \n \n \n Treasury/own shares \n \n \n 23 \n \n \n (6,678) \n \n \n (8,931) \n \n \n \n \n Accumulated funds \n \n \n \n \n \n 101,087 \n \n \n 249,834 \n \n \n \n \n Currency translation reserve \n \n \n \n \n \n 1,797 \n \n \n (14,112) \n \n \n \n \n TOTAL EQUITY \n \n \n \n \n \n 669,574 \n \n \n 796,458 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Approved by the Board on 25 March 2026 \n Chris Cox                                                                             Martin Copeland \n Chief Executive Officer                                                  Chief Financial Officer \n \n \n \n Serica Energy plc \n Group Statement of Changes in Equity \n For the year ended 31 December 2025 \n   \n \n \n \n \n   \n \n \n   \n \n \n Share capital \n \n \n Merger reserve \n \n \n Other reserve \n \n \n   \n Treasury/own shares \n \n \n Currency translation reserve \n \n \n Accumulated funds \n \n \n Total \n \n \n \n \n   \n \n \n   \n \n \n $000 \n \n \n $000 \n \n \n $000 \n \n \n $000 \n \n \n $000 \n \n \n $000 \n \n \n $000 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 1 January 2025 \n \n \n \n \n \n 245,537 \n \n \n 286,590 \n \n \n 37,540 \n \n \n (8,931) \n \n \n (14,112) \n \n \n 249,834 \n \n \n 796,458 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (51,822) \n \n \n (51,822) \n \n \n \n \n Other comprehensive profit \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 15,909 \n \n \n - \n \n \n 15,909 \n \n \n \n \n Total comprehensive income/(loss) \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 15,909 \n \n \n (51,822) \n \n \n (35,913) \n \n \n \n \n Issue of shares \n \n \n \n \n \n 178 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 178 \n \n \n \n \n Share-based payments \n \n \n \n \n \n - \n \n \n - \n \n \n 3,523 \n \n \n - \n \n \n - \n \n \n - \n \n \n 3,523 \n \n \n \n \n Treasury/own shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (9,819) \n \n \n - \n \n \n - \n \n \n (9,819) \n \n \n \n \n Release of shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 12,072 \n \n \n - \n \n \n (12,072) \n \n \n - \n \n \n \n \n Dividend paid \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (84,853) \n \n \n (84,853) \n \n \n \n \n At 31 December 2025 \n \n \n \n \n \n 245,715 \n \n \n 286,590 \n \n \n 41,063 \n \n \n (6,678) \n \n \n 1,797 \n \n \n 101,087 \n \n \n 669,574 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 1 January 2024 \n \n \n \n \n \n 245,257 \n \n \n 283,367 \n \n \n 37,650 \n \n \n - \n \n \n (8,895) \n \n \n     276,789 \n \n \n 834,168 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 92,429 \n \n \n 92,429 \n \n \n \n \n Other comprehensive loss \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (5,217) \n \n \n - \n \n \n (5,217) \n \n \n \n \n Total comprehensive (loss)/income \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (5,217) \n \n \n 92,429 \n \n \n 87,212 \n \n \n \n \n Issue of shares \n \n \n \n \n \n 280 \n \n \n 3,223 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 3,503 \n \n \n \n \n Share-based payments \n \n \n \n \n \n - \n \n \n - \n \n \n 3,735 \n \n \n - \n \n \n - \n \n \n - \n \n \n 3,735 \n \n \n \n \n Treasury/own shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (18,775) \n \n \n - \n \n \n - \n \n \n (18,775) \n \n \n \n \n Release of shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 9,844 \n \n \n - \n \n \n (9,844) \n \n \n \n \n \n \n \n Share payments \n \n \n \n \n \n - \n \n \n - \n \n \n (3,845) \n \n \n - \n \n \n - \n \n \n 3,845 \n \n \n - \n \n \n \n \n Dividend paid \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (113,385) \n \n \n (113,385) \n \n \n \n \n At 31 December 2024 \n \n \n \n \n \n 245,537 \n \n \n 286,590 \n \n \n 37,540 \n \n \n (8,931) \n \n \n (14,112) \n \n \n 249,834 \n \n \n 796,458 \n \n \n \n \n \n \n \n \n \n \n \n Serica Energy plc \n \n \n   \n \n \n \n \n \n \n \n Group Cash Flow Statement \n \n \n   \n \n \n \n \n \n \n \n For the year ended 31 December 2025 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n $000 \n \n \n $000 \n \n \n \n \n \n \n \n Note \n \n \n   \n \n \n   \n \n \n \n \n Cash inflow from operations \n \n \n 24 \n \n \n 179,946 \n \n \n 452,222 \n \n \n \n \n Taxation received/(paid) \n \n \n \n \n \n 63,358 \n \n \n (152,517) \n \n \n \n \n Decommissioning spend \n \n \n \n \n \n (1,088) \n \n \n (18,142) \n \n \n \n \n Net cash flow generated from operating activities \n \n \n 24 \n \n \n 242,216 \n \n \n 281,563 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Investing activities: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest received \n \n \n \n \n \n 5,486 \n \n \n 13,927 \n \n \n \n \n Expenditures relating to E&E assets \n \n \n \n \n \n (6,467) \n \n \n (11,123) \n \n \n \n \n Expenditures relating to property, plant and equipment \n \n \n \n \n \n (242,567) \n \n \n (249,050) \n \n \n \n \n Acquisition of asset interests \n \n \n 30 \n \n \n (11,720) \n \n \n (7,665) \n \n \n \n \n Business combination, net cash acquired \n \n \n 29 \n \n \n 2,235 \n \n \n - \n \n \n \n \n Net cash flow used in investing activities \n \n \n \n \n \n (253,033) \n \n \n (253,911) \n \n \n \n \n   \n \n \n \n \n Financing activities: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Payments of lease liabilities \n \n \n 26 \n \n \n (1,943) \n \n \n (2,697) \n \n \n \n \n Proceeds from issue of shares \n \n \n 23 \n \n \n 178 \n \n \n 280 \n \n \n \n \n Repayment of borrowings \n \n \n 21 \n \n \n (51,848) \n \n \n (323,700) \n \n \n \n \n Proceeds from borrowings \n \n \n 21 \n \n \n 51,848 \n \n \n 283,500 \n \n \n \n \n Dividends paid \n \n \n 11 \n \n \n (84,853) \n \n \n (113,385) \n \n \n \n \n EBT/Share buyback \n \n \n 23 \n \n \n (9,819) \n \n \n (18,775) \n \n \n \n \n Finance costs paid \n \n \n \n \n \n (25,900) \n \n \n (38,501) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net cash flow used in financing activities \n \n \n \n \n \n (122,337) \n \n \n (213,278) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net decrease in cash and cash equivalents \n \n \n \n \n \n (133,154) \n \n \n (185,626) \n \n \n \n \n Effect of exchange rates on cash and cash equivalents \n \n \n \n \n \n 3,534 \n \n \n (1,347) \n \n \n \n \n Cash and cash equivalents at 1 January \n \n \n 24 \n \n \n 148,460 \n \n \n 335,433 \n \n \n \n \n Cash and cash equivalents at 31 December \n \n \n 24 \n \n \n 18,840 \n \n \n 148,460 \n \n \n \n \n   \n \n \n Serica Energy plc \n   \n Notes to the Financial Statements \n   \n 1.    Authorisation of the Financial Statements and Statement of Compliance with UK adopted International Accounting Standards \n The Group's financial statements for the year ended 31 December 2025 were authorised for issue by the Board of Directors on 25 March 202 6 and the balance sheet was signed on the Board's behalf by Chris Cox and Martin Copeland. Serica Energy plc is a public limited company incorporated and domiciled in England & Wales with its registered office at 72 Welbeck Street, London, W1G 0AY. The principal activity of the Company and its subsidiaries (together the 'Group') is to identify, acquire and subsequently exploit oil and gas reserves. A listing of the Group's subsidiaries is contained in note 31 to these Group financial statements. Its current activities are located in the United Kingdom. The Company's ordinary shares are traded on AIM. \n   \n The Group's financial statements have been prepared in accordance with UK adopted International Accounting Standards as they apply to the financial statements of the Group for the year ended 31 December 2025. The principal material accounting policies adopted by the Group are set out in note 2. \n   \n 2. Material Accounting Policies \n   \n Basis of Preparation \n Other than as noted in the new and amended standards and interpretations section below, the accounting policies which follow set out those policies which have been applied consistently in preparing the financial statements for the year ended 31 December 2025. \n   \n The Group financial statements have been prepared on a historical cost basis and presented in US dollars. All values are rounded to the nearest thousand US dollars ($000) except when otherwise indicated. \n   \n In preparing the Group financial Statements management has considered the impact of climate change. These considerations did not have a material impact on the financial reporting judgements and estimates and consequently climate change is not expected to have a significant impact on the Group's going concern assessment to June 2027 nor the viability of the Group over the next five years. However, governmental and societal responses to climate change risks are still developing, and are interdependent upon each other, and consequently financial statements cannot capture all possible future outcomes as these are not yet known. It is recognised that Net Zero targets and third-party expectations may drive government action that imposes further requirements and costs on companies in the future.  The Group has additional planned expenditure related to flare gas recovery and other emission reduction measures, however, as all of the Group's existing portfolio of producing assets are currently projected to cease production by 2036, it is believed that any such future changes would have a relatively limited impact compared to assets with longer durations. The Group will continue to consider the impact of climate change on any future business developments. \n   \n Going Concern \n The Directors are required to consider the availability of resources to meet the Group's liabilities for the period till 30 June 2027, the 'going concern period'. \n As at 20 March 2026 the Group held cash and cash equivalents of $94 million, restricted cash of $12 million, and undrawn RBL facility amount of $ 198 million. See note 21 for further details of the current RBL facility. \n The Group has a balance in product mix between gas and oil, and two main operating hubs which reduces the potential impact of production interruptions. The Group regularly monitors its cash, funding and liquidity position, including available facilities and compliance with facility covenants. Ongoing capital requirements also include surety bonds which provide cover for decommissioning security. Near-term cash projections are revised and underlying assumptions reviewed, generally monthly, and longer-term projections are also updated regularly. Downside price and other risking scenarios are considered. In addition to commodity sales prices the Group is exposed to potential production interruptions and these are also considered under such scenarios. In recent years, management has given priority to building a strong cash reserve which can respond to different types of risk. \n   \n For the purposes of the Group's going concern assessment we have reviewed two cash projections for the going concern period. These projections cover a base case forecast and an extreme stress test scenario for the operations of the Group. RBL repayments have been assumed based on the current redetermination and no covenant compliance matters noted. \n   \n The base case assumptions for the going concern period included commodity pricing of 82 pence/therm for gas and US$ 69 /bbl for oil for the remainder of 2026 and 76 pence/therm gas and US$ 72 /bbl oil for H1 2027. Production, opex, capex and tax assumptions are those currently included in standard management forecasting which includes the continuation of existing surety bonds, the completion during 2026 of previously announced acquisitions (note 29) and associated surety bonds which provide cover for decommissioning security. The forward-looking price assumptions are considered as reasonable in light of recent commodity forward pricing and a consensus of published forecasts from the industry, brokers and other analysts. \n   \n The stress test assumptions assume a six-month Triton hub production shut-in and 25% reduced production volumes from the base case across the full portfolio of producing assets for H1 2027. Base case commodity pricing is retained for 2026 but lower commodity pricing of 50p/therm gas and US$60/bbl oil are assumed for the H1 2027 period in this scenario which are significantly below the range of current market expectations for the going concern period. Under this scenario, which would result in lower cash inflows and any repayments of the RBL facility as redetermined, the Group was able to maintain sufficient cash to meet its obligations and maintain covenant compliance. A number of mitigating factors and mitigating actions that are under management control are available to management in the stress test event. These would mitigate the reduced operating cash flows experienced and are not included in the projection. \n   \n After making enquiries and having taken into consideration the above factors, the Directors considered it appropriate that the Group has adequate resources to continue in operational existence for the going concern period. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. \n   \n Use of judgement and estimates and sources of estimation uncertainty \n The preparation of financial statements in conformity with UK adopted International Accounting Standards requires management to make judgements and estimates that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Estimates and judgements are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes could differ from these estimates. The Group has identified the following areas where significant judgement, estimates, and assumptions are required. \n   \n I) Uses of judgement \n Key sources of judgement that may have a significant risk of causing material adjustment to the amounts recognised in the financial statements are as follows: assessing whether impairment triggers exist that might lead to the impairment of the Group assets (including oil and gas producing & development assets and Exploration and Evaluation \"E&E\" assets). \n   \n Details on these sources of judgements are given below. \n   \n Assessment of the impairment indicators of intangible and tangible assets \n The Group monitors internal and external indicators of impairment relating to its intangible and tangible assets, which may indicate that the carrying value of the assets may not be recoverable. The assessment of the existence of indicators of impairment in E&E assets involves judgement, which includes whether licence performance obligations can be met within the required regulatory timeframe, whether management expects to fund significant further expenditure in respect of a licence, and whether the recoverable amount may not cover the carrying value of the assets. For development and production assets judgement is involved when determining whether there have been any significant changes in the Group's oil and gas reserves. \n   \n A review was performed for any indication that the value of the Group's oil and gas assets may be impaired at the balance sheet date of 31 December 2025 in accordance with the stated policy. \n   \n II) Sources of estimation uncertainty \n   \n Key sources of estimation uncertainty \n The key sources of estimation uncertainty that may have a significant risk of causing material adjustment to the amounts recognised in the financial statements are: the assessment of commercial reserves and production profiles; and decommissioning provisions. \n   \n Details on these key sources of estimation uncertainty are given below. \n   \n Assessment of commercial oil and gas reserves \n Management is required to assess the level of the Group's commercial reserves together with the future expenditures to access those reserves, which are utilised in determining the depletion charge for the period, decommissioning provisions, whether deferred tax assets are recoverable and assessing whether any impairment charge is required. Estimates of oil and gas reserves require critical judgement. The Group uses proven and probable (2P) reserves (excluding fuel gas) (see Review of Operations) as the basis for calculations of depletion and expected future cash flows from underlying assets because this represents the reserves management intends to develop. The Group employs independent reserves specialists who periodically assess the Group's level of commercial reserves by reference to data sets including geological, geophysical and engineering data together with reports, presentation and financial information pertaining to the contractual and fiscal terms applicable to the Group's assets. In addition, the Group undertakes its own assessment of commercial reserves and related future capital expenditure by reference to the same data sets using its own internal expertise. A 10% reduction in the assessed quantity of commercial reserves would lead to an increase in the depletion charge for 2025 of $15.4 million (2024: $20.4million). \n   \n Decommissioning provisions \n Amounts used in recording a provision for decommissioning are estimates based on current legal and constructive requirements and current technology and price levels for the removal of facilities and plugging and abandoning of wells. Due to changes in relation to these items, the future actual cash outflows in relation to decommissioning are likely to differ in practice. To reflect the effects due to changes in legislation, requirements and technology and price levels, the carrying amounts of decommissioning provisions are reviewed on a regular basis. The effects of changes in estimates do not give rise to prior year adjustments and are dealt with prospectively....

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