SERICA ENERGY PLC - Capital Markets Day

Serica Energy PLC’s Capital Markets Day highlighted a clear growth strategy focused on increasing production, strengthening shareholder returns, and unlocking value from its diversified UK North Sea portfolio. The company expects production to reach approximately 65,000 boepd following recent acquisitions and outlined a multi-well drilling programme across 2027–2028 targeting 34 million boe of reserves and resources, with the potential to add around 30,000 boepd of incremental production. Management reaffirmed its disciplined capital allocation framework, supported by a strong balance sheet, significant liquidity, and a sustainable shareholder distribution policy featuring a base dividend and potential additional returns linked to company performance. Serica also emphasised its proven track record in value-accretive M&A, operational optimisation, and reserve growth, while highlighting major development opportunities across the Bruce, Triton, Greater Laggan, Cygnus, and Southern North Sea assets. The company expects its growth projects to generate attractive returns, with targeted IRRs exceeding 40%, supported by substantial tax efficiencies and robust free cash flow generation. Management also outlined ambitions to diversify geographically through selective acquisitions outside the UK, including opportunities in Southeast Asia, while maintaining focus on disciplined investment, balance sheet strength, and long-term shareholder value creation.