Serica builds its war chest

The UK producer is benefitting from high prices and all the revenues from its BKR asset. But it continues to preach M&A caution

UK continental shelf (UKCS) independent Serica Energy’s increasingly healthy bank balance has attracted analyst attention. But, while the firm is upping its dividend, taking the first steps towards share buybacks and continuing to look at potential acquisitions, it remains keen to stress its prudent approach towards the M&A market. “Serica has reported FY21 results, with the significant news we think being the mid-April cash position of £363mn [$473mn], substantially higher than £218mn at end-December,” says Chris Wheaton, managing director at US bank Stifel. And he expects the firm’s balance sheet to improve further, foreseeing £492mn of net cash at the end of 2022 at price forecasts of