Serica Energy, a British upstream oil and gas company with operations in the UK North Sea, ended the first half of 2026 with $26 million of net cash, a swing from the net debt position it held at the end of 2025, the AIM-listed producer said in unaudited results for the six months to 30 June 2026. The company generated $184 million of free cash flow in the period.

Production net to Serica rose to 44,700 barrels of oil equivalent per day (boepd) in the first half of 2026, up from 24,700 boepd a year earlier and in line with guidance. Serica said the increase came from higher uptime across its portfolio and the addition of output from newly acquired assets West of Shetland. Production averaged 50,200 boepd in the second quarter, with the Triton hub contributing 20,300 boepd at more than 95% uptime. CEO Chris Cox said Serica "delivered a strong first half, with robust production, material free cash flow" in the period.

Financing and liquidity

Serica completed a $300 million five-year Nordic bond in May and, in July, refinanced its Reserves Based Lending facilities into a new $750 million six-year facility. The company said the two moves gave it $784 million of liquidity as of 30 June 2026, calculated pro forma for the new RBL borrowing base. Cash on hand rose to $326 million at 30 June 2026, up from $31 million at the end of 2025, helped in part by a $56 million payment on completion of Serica's acquisition of assets West of Shetland from TotalEnergies.

Serica spent $81 million of capital on a cash basis in the first half, with $50 million of that going to the Bruce Hub. The company declared an interim dividend of 6p per share, matching its 2025 interim dividend. It is payable 19 November 2026 to shareholders on the register on 23 October 2026, with shares trading ex-dividend from 22 October 2026.

Growth program and acquisitions

At its 2 June Capital Markets Day, Serica presented a slate of short-cycle projects it says could add 30,000 boepd of new production, enough to keep average annual output above 50,000 boepd through the next decade, with expected returns above 40%. The company expects to sign a rig contract in the coming weeks for a roughly 400-day drilling program, with an option to extend, covering up to six wells. Serica expects to spud the Bruce SCE and SCW wells first, in the third quarter of 2027, with first production possible about a year after drilling begins.

Serica completed its acquisition of a 40% interest in the Greater Laggan Area from TotalEnergies on 26 March, adding a new operated hub for production and development in the West of Shetland basin. After the period ended, the company announced a recommended acquisition of Pharos Energy, which Cox called "the first step" toward building an international business alongside Serica's UK position.

Outlook

Serica said it remains on track to reach production of about 65,000 boepd once its acquisition of assets from Spirit Energy completes. That deal is now set to close 1 October 2026, and Serica revised its 2026 production guidance to above 40,000 boepd, down from its earlier guidance of significantly above 40,000 boepd. The company also lowered its post-tax cash flow from operations guidance to $450-475 million to reflect the later completion date, while capital expenditure guidance of $175-195 million and opex guidance of $380-400 million, excluding $65 million earmarked for Lancaster, held steady. Serica said its planned move from AIM to the Main Market of the London Stock Exchange remains on track to complete in 2026.