**Summary of Serica Energy PLCs Half-Year Report for the Six Months Ended 30 June 2025**
**Financial Performance**
**Revenue** $305 million, down from $462 million in H1 2024, primarily due to the prolonged outage of the Triton FPSO.
**EBITDAX** $118 million, significantly lower than $279 million in H1 2024, reflecting reduced production and revenues.
**Profit Before Taxation** $101 million, compared to $188 million in H1 2024.
**Loss After Taxation** $43 million, a stark contrast to the $82 million profit in H1 2024, largely due to a one-off non-cash tax charge of $65.2 million related to the extension of the Energy Profits Levy (EPL).
**Cash Position** Robust with $174 million in cash, up from $148 million at the end of 2024, bolstered by a $71 million cash tax refund.
**Net Debt** Reduced to $57 million from $83 million at the end of 2024.
**Interim Dividend** Declared at 6p per share, down from 9p in 2024, in line with the rebalancing of the dividend policy.
**Operational Highlights**
**Production** 24,700 boepd in H1 2025, significantly impacted by the Triton FPSO shutdown from January to July. Production is expected to ramp up to around 50,000 boepd with the resumption of Triton operations and new wells coming online.
**Triton FPSO** Underwent extensive maintenance and remediation work, including repairs to the inert gas marine system, topside modifications, and safety-critical upgrades. Production resumed in July, with a focus on improving uptime and operational efficiency.
**Bruce Hub** Production optimization work is yielding results, with July production averaging 21,600 boepd, up from 16,700 boepd in H1 2025. Plans for future drilling campaigns are progressing, with over 20 potential infill targets identified.
**Belinda Field** Subsea tie-in work is progressing well, with first production expected in early 2026. The BE01 well tested at 7,500 boepd.
**Kyle Redevelopment** Front-end design work is underway, with a potential Final Investment Decision (FID) in H1 2026, targeting first oil in 2028.
**Strategic Initiatives**
**Organic Growth** Focus on converting 2C resources into reserves, with plans for infill drilling around the Bruce Hub and the Kyle redevelopment.
**M&A Opportunities** Actively exploring value-accretive acquisitions in the UK North Sea to enhance growth and synergy potential.
**Regulatory Environment** Advocating for a more supportive fiscal and regulatory environment to encourage investment in UK oil and gas resources.
**Outlook**
**Production Guidance** 33,000-35,000 boepd for FY 2025, with a material increase in H2 due to Triton FPSO uptime and new wells.
**Capital Expenditure** Expected to be around the top end of the $220-250 million range, driven by the Belinda development and other projects.
**Cash Generation** Expected to be material, supporting organic growth, dividends, and potential M&A activities.
**Market Listing** Progressing towards a move from AIM to the Main Market of the London Stock Exchange in Q4 2025.
**CEOs Review**
Chris Cox, CEO, emphasized the resilience of Sericas operations despite challenges, highlighting the successful five-well drilling campaign at Triton and ongoing optimization efforts. He underscored the importance of a supportive regulatory environment for long-term investment and expressed confidence in Sericas ability to deliver organic growth and explore M&A opportunities.
**Conclusion**
Serica Energy PLC demonstrated resilience in H1 2025 despite significant operational challenges, particularly the Triton FPSO outage. The company is well-positioned for growth with a strong balance sheet, robust cash position, and a clear strategy for organic development and potential M&A. The focus on operational efficiency, coupled with a supportive regulatory environment, will be crucial for achieving long-term objectives.