Share Name Share Symbol Market Type Share ISIN Share Description
Serica Energy LSE:SQZ London Ordinary Share GB00B0CY5V57 ORD USD0.10
  Price Change % Change Share Price Shares Traded Last Trade
  +2.00p +2.35% 87.00p 481,828 15:35:14
Bid Price Offer Price High Price Low Price Open Price
86.00p 87.00p 87.00p 84.80p 84.80p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 23.67 8.03 4.44 19.0 229.5

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Date Time Title Posts
18/9/201816:02Serica Energy9,494
18/9/201811:50serica energy248
03/8/201814:40Serica - For serious Investors17
27/3/201813:08serica energy1

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Serica Energy Daily Update: Serica Energy is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker SQZ. The last closing price for Serica Energy was 85p.
Serica Energy has a 4 week average price of 72.40p and a 12 week average price of 55p.
The 1 year high share price is 93p while the 1 year low share price is currently 21.50p.
There are currently 263,745,040 shares in issue and the average daily traded volume is 472,616 shares. The market capitalisation of Serica Energy is £226,820,734.40.
captainfatcat: Worth mentioning that the share price prior to the BKR deal was also reflecting a significantly different oil price environment 2016/2017 had seen Brent ranging from $55 to sub $40 and it wasn't until the middle of 2017 that the oil price started trending north once again and actually holding onto its gains.
mirabeau: Today's IC - 'Serica Energy (SQZ) was also up 17.7 per cent, recovering most of May and June’s losses. It was a nice move ahead of the 3 August announcement of its purchase of Total’s 42.25 per cent stake in the Bruce field and 25 per cent stake in the Keith field in the North Sea. It's a cleverly structured deal, which sees Serica's interest in Bruce increase to 78.3 per cent and in Keith to 59.8 per cent; the share price leapt 23 per cent. It expects this and its previously announced BKR deal with BP to complete before the end of September. On completion, Serica’s daily production will increase to around 25,000 barrels of oil equivalent per day (boepd). A year ago, it was producing just 2,800 boepd. It has increased production nearly 10-fold without diluting shareholders through issuing shares and has avoided taking on debt by financing the two deals through existing and future cash flow. There is the small matter of its partner in the Rhum field being the Iranian National Oil Corporation. It is seeking regulatory consents for Rhum including a licence from the US Office of Foreign Assets Control. If that is forthcoming I think the share price has a lot further to go.'
bountyhunter: The recent share price performance of SDX makes no sense to me given newsflow; I'm holding on for a recovery there! ...already overweight in SQZ although happy with that but generally speaking like to diversify my investments widely nowadays.
pineapple1: With all the shares in NS fields detailed recently due to enter the auction process then SQZ may, if particularly interested in any number of them , not complete the BKR deal in time to use the cash flow it would generate. In any case its doubtful Total ,Chevron etc would agree to a BKR type deal ,but require cash on the nose for their interests. So a large scale placing as Nuts suggests is not out of the question. Hopefully it would be an open offer to existing holders ,but the company may not want all the aggravation of dealing with PI's reluctent to part with their cash. I'd be more than happy to pony up some cash if the placing price began with a 4. It would be a temp thing in any case as it would be earnings enhancing ,not to pay down a pile of bank loans and i'd expect the share price to rebound to higher prices withing the first week of trading. A bit of pain for long term mega gain. imho
the abbot: Don't miss the important one The Performance Share Awards have been made in the form of nil-cost options to senior employees and executive directors and include a grant of options over 1,500,000 Ordinary shares of US$0.10 each made to the Executive Chairman, Antony Craven Walker and a grant over 1,500,000 Ordinary shares of US$0.10 each to Mitch Flegg, Chief Executive Officer. The Performance Share Awards are subject to performance conditions based on average share price targets to be measured by reference to dealing days in the period of 90 days ending immediately prior to the expiry of a three-year performance period starting on 30 November 2017. The measurement does not start until after the deal was announced so their performance is based from AFTER the large share price rise in Nov. Those shareholders on the lse website don't seem to get it!
dunderheed: 7501 I was nervous matey, I was nervous! (About the 7500 post not the sqz share price I hasten to add!)
gersemi: Serica Energy (LSE:SQZ) This stock pick is a continuation of our previous article, which can be viewed here. In the previous CJ Exposure report, the various up-and-coming production lines were detailed, showing where the company’s future revenue will be coming from. Since the report, Serica announced that they were set to acquire assets from BP in the North Sea, which would further bolster their future revenue streams. The share price rocketed from 27p to settle around 80p over the weeks after the announcement, taking the market cap from £80m to £215m, after a period where the shares were suspended from trading. Now, at 75p per share, Serica presents a buying opportunity and although this is a lot higher than the 27p entry point from our previous article, we still believe there is more growth on offer. The re-rating reflects the BP acquisition, where the company have managed to make the deal without compromising their balance sheet and without taking on any debt, which leaves Serica in the same fantastic financial position that they had been in previously, and therefore our thesis still stands they will continue to go out and grow the business, organically and in-organically, and push for further share price re-rating. The acquisition involves Serica purchasing BP's interests in the Bruce (36%) Keith (35%) and Rhum (50%) fields with Serica assuming operating interest of all three fields. Serica have described this move as transformational and it's hard to disagree; the new fields increase net production from 3,000boepd (Barrels of Energy per day) to an estimated 21,000boepd (7x) and a sixteen-fold increase in net reserves to 50mmboe from 3mmboe. Not only will it significantly improve Serica’s cashflow, but it also diversifies the company away from the problematic forties pipeline; previously the pipeline had been Serica’s only export source and had suffered blockages which would weigh heavily on their share price, but with a more diversified export system, and less reliance on one pipeline, a temporary shutdown wouldn't hurt Serica like it has done in the past. The deal will initially cost £12.8m and then a profit-sharing deal with BP on future production from Bruce, Keith and Rhum will be paid. BP also assume 100% of decommissioning costs assuming no new facilities are installed by Serica after completion, and with this earn-out structure in place it appears to be somewhat of a win-win for both parties, as they share both risks and future profits. The deal is expected to complete by mid-2018, with Serica taking on all of the BP employees working over the three assets, which could help with some of the short-term teething issues as Serica move from being a single asset producer to being operational over multiple assets. We are less concerned by any teething issues as our preference for Serica shares is based on a longer-term view, where we see Serica becoming a leading British independent oil and gas company, and in this regard, we still see there being a lot of upside on the price that is already up c.200% in the last 12 months. Peel Hunt have set a target price of 110p, which offers upside of c.38% from current levels, but we believe that this will prove conservative in the longer term. On a larger scale, we don’t believe that a 75p share price reflects the potential of Serica Energy. The new assets will be producing first oil to Serica in the coming months, but it’s also worth reflecting on our previous article, where we detailed the other projects planned to come on-stream in the next few years (including the Columbus and Rowellen fields), which we believe means that Serica will become a major player in the North Sea and could offer significate upside against risk. Serica also looks appealing on current valuations; trading with a P/E of only 3x and a PEG of 0.04x; this look very attractive, especially when considering shares in the company have risen by over 400% since January 2017. In particular, a PEG of 0.04 implies that Serica shares are still yet to price in almost the entirety of the company’s forecasted growth. It is for exactly this reason, the forecasted growth that Serica offers, partnered with one of the lowest PEG’s that you will find, that warrants its place in our top stock picks for 2018. HTTP://
gersemi: TIPPED IN THE IC: --- 'Not too late for Serica windfall IC Tip: Buy at 75.5p Tip style Growth Risk rating High Timescale Medium Term Bull points Transformative deal Free cash flow yield BP retains key liabilities Discount to core NAV Bear points Forties shutdown Oil price By Alex Newman Life comes at you fast. On 21 November, investors in Serica Energy (SQZ), a well-run if small Aim-traded oil and gas producer, awoke to news that their company had agreed to buy BP’s (BP.) stakes in three major North Sea fields. Alongside a new chief executive, the deal gave Serica the following: a 16-fold increase in net 2P reserves, a sevenfold increase in net production, 110 new staff, and a near-fivefold increase in forecast earnings per share (EPS) for 2018 and 2019. The price of this transaction? An upfront payment of just £12.8m, contingent payments of up to £39.1m, and around half of the pre-tax net cash flow from the fields until 2021 (and everything thereafter). This unique deal, something of an experiment in the history of North Sea field operatorship, is one we believe new investors can still benefit from, even after the 170 per cent share price surge seen since the transaction was announced. SQZ:LSE Serica Energy PLC 1mth Today change -1.51% Price (GBP) 81.75 But what exactly is Serica buying? Once the deal becomes effective on 1 January, the group will own 36, 35 and 50 per cent interests in the Bruce, Keith and Rhum fields respectively, and will sit as the producer-operator of all three, collectively known as the “BKR assets”. Together with its stake in Erskine, another North Sea field acquired from BP in 2015, broker Peel Hunt judges Serica’s production assets to be worth 87.5p. Including cash on the balance sheet and tax credits, the brokerage values the group’s core net asset base at £355m, or 134p a share. So this deal clearly represents a giant leap for the hitherto junior producer, but the question for investors is whether it offers value at the current price? The answer, we believe, is yes. Assuming operating costs stay below $15 (£11) a barrel and Brent crude averages $57 in 2018 and $60 in 2019, Peel Hunt reckons Serica’s interests should generate a net profit of $83m and $118m in those years, at the end of which there is expected to be $193m net cash on its balance sheet. Thereafter, field production is set to steadily decline, and assuming no discoveries are made, the group’s reserves will last less than seven years. This helps to explain why BP is happy to wave goodbye to the BKR assets (albeit for around £300m in total payments); put simply, the fields are worth a lot less to an oil major than they are to a mid-tier producer. Importantly, BP will retain financial liability for all decommissioning costs, although Serica in on the hook for 30 per cent of post-tax costs, and the job of planning and executing the fields’ closure at some point in the next decade. SERICA ENERGY (SQZ) ORD PRICE: 76p MARKET VALUE: £199m TOUCH: 75.5-76.8p 12-MONTH HIGH: 77p LOW: 74p FORWARD DIVIDEND YIELD: nil FORWARD PE RATIO: 3 NET ASSET VALUE: 36¢ NET CASH: $25.1m Year to 31 Dec Turnover ($m) Pre-tax profit ($m)* Earnings per share (¢)* Dividend per share (¢) 2014 0.0 -4.8 -2.1 nil 2015 24.0 12.8 5.9 nil 2016 21.4 3.7 4.2 nil 2017* 34.2 18.4 6.9 nil 2018* 177 116 31.5 nil % change +416 +491 +357 - Normal market size: 10,000 Matched bargain trading Beta: 0.24 £1=$1.34. *Peel Hunt forecasts and adjusted pre-tax profit and EPS numbers. IC View The state of the North Sea’s ageing infrastructure certainly came in for greater focus just three weeks after the deal was announced, when the Forties Pipeline – which carries output from Erskine and the BKR assets – was shut down after the discovery of a hairline crack. At the time of writing, Forties operator Ineos, which recently acquired the pipeline from BP, expects repair work to have completed by early January. This unfortunate development nonetheless provides a pause in recent momentum, as the market latches on to the consequences of Serica's free cash flow, which is expected to total a combined 88p in the 2018 and 2019 financial years, and the potential for rapid, near-term equity growth. Buy. - not holding but like the company
captainfatcat: Very reassuring to see the share price looking so resilient, sells are getting mopped up and the news of a temporary shutdown of the Forties pipeline hasn't made a dent in the share price Long holders are feeling very optimistic about the acquisition (that's me). But as has been mentioned its not a done deal as yet and accordingly there is an element of risk still attached to the share price which diminishing as we get closer to year end and the transfer of ownership official starts. For sure if news of the pipeline shutdown came before the acquisition announcement I think we would be sub 20p and all feeling pretty glum about it. ------------------------------ Another thought I wonder with North Sea costs driven down and the oil price seeming a little more buoyant if there might be interest again in bringing the Vette oil field (previously Bream field) into production. Small bear now and I'm not sure who the current owners are or if SQZ are still in line to benefit from a bonus payment when the field is brought into production. Have a good weekend all
fuji99: mesquida - I referred to the Share Price as Bear said. Obviously it is the production increase that will boost the share price accordingly. The actual share price does not reflect the whole potential of future production as market cap - share price related - is too low.
Serica Energy share price data is direct from the London Stock Exchange
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