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North Sea operator Serica pays first dividend after settling debts

North Sea operator Serica pays first dividend after settling debts

 

North Sea oil and gas producer Serica Energy has unveiled plans to pay its maiden dividend this year after the company paid back all its borrowings.

The company joins a growing list of stocks quoted on the Alternative Investment Market (AIM) that are beginning to pay dividends, with the overall amount of cash being returned to shareholders passing the £1 billion mark for the first time in 2018. Serica joined the junior market in 2005.

All the firm’s borrowings were repaid last year when the company cleared its £16.5 million BP gas prepayment facility. The company had £101.8 million of cash on its balance sheet at the end of last year, [2019] with output from its four fields up 13% year-on-year.

Serica operates the Bruce, Keith and Rhum fields in the Northern North Sea, with a 100% stake in Keith, a 98% holding in Bruce and a 50% share of Rhum. It also has an 18% interest in the Erskine field in the Central North Sea and a 50% stake in the Columbus field, which it is developing and will operate.

Chief executive Mitch Flegg said: “2019 has been a year of strong performance and achievement for Serica. We have established our position as a leading UK independent producer and we entered 2020 with no borrowings, low decommissioning liabilities and in a strong cash position.”

Source: Insider

Published: 14-01-2020
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