Serica Energy plc said increased production from 2021 investment and higher gas prices had resulted in higher profits from its offshore oil and gas operations in the North Sea.
FINANCES
For the year ended 2022, the company generated profit before tax of £488.2 million for 2022 (2021: £135.1m).
After current and deferred tax provisions of £310.4m (2021: £55.8m), profit for the year was £177.8m (2021: £79.3m).
Gross profit for 2022 was £594.3m (2021: £386.8m), boosted by a combination of increased production arising from 2021 investment on the Rhum R3 and Columbus wells, work on Bruce wells during 2022 and from high gas prices.
Total sales revenue for 2022 amounted to £812.4m (2021: £514.1m) including a £37.5m gas supply contract (2021: £nil).
The combined sales revenue for the Bruce, Keith and Rhum fields was £678.2m (2021: £463.4m), Erskine at £63.6m (2021: £36.3m) and Columbus at £70.6m (2021: £14.4m).
Serica paid £284m tax in the UK since the start of 2022.
During 2022, Serica wrote off £82.7m (2021: £nil) for drilling costs from the North Eigg exploration and evaluation well, which encountered no commercial quantities of hydrocarbons as the reservoir sands were thinner than expected.
Administrative expenses rose to £9.2m (2021: £6.1m) mainly due to an increase in corporate activity, including advisor costs on projects separate to the Tailwind acquisition.
OPERATIONS 2023
The company plans a second light well intervention vessel campaign to enhance production on BKR wells this summer with a further campaign expected in 2024.