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.”
