Serica Energy PLC (LON:SQZ) shares edged forward on Tuesday on financial results for what’s described by chief executive Mitch Flegg as “a landmark year”.
Operating profit for the 2017 amounted to US$14.1mln, which as the company highlights, represents a four-fold rise over the preceding year. Revenues were boosted by better crude oil prices, and the group made a US$17.1mln profit after tax.
The company ended the year with US$34mln of cash and term deposits.
Significantly, the year was punctuated with a major transaction – with the agreed deal to acquire BP’s stakes in the Bruce, Keith and Rhum or BKR fields. The transformational deal is due to complete in the third quarter of 2018, and it promises to substantially increase group production.
READ: Serica Energy to acquire BP’s stake in BKR fields
“Building on a strong set of financial results, the announcement of the BKR Assets acquisition in late November rounded off an excellent year,” said Mitch Flegg, Serica chief executive.
“Though much of our effort is currently directed towards the transition of BKR operations from BP, we continue to seek new opportunities to add to our portfolio of assets.
“We believe that the UK North Sea, where there are strategic benefits for Serica, will continue to provide new opportunities to grow the business and add shareholder value.”
Serica shares rose 2p or 3.1% to trade at 66.30p.