Which candidates is Serica looking at for its vacant CEO position?

Serica Energy (LON: SQZ) is on the hunt for a new chief executive as Mitch Flegg has stepped down following six years at the helm.

The firm’s chairman and interim chief executive, David Latin, told Energy Voice that the search is progressing “very well” and that the firm expects to replace Mr Flegg by its AGM at the end of June.

Mr Latin explained: “Mitch has been a tremendous servant to Serica, and he has been with Serica for a long time before he was the CEO and he’s done a brilliant job as a CEO.”

The chairman said that in the hunt for Mr Flegg’s successor, the business “certainly wants to replicate” some of the qualities the outgoing boss displayed during his tenure.

“We want somebody that will be very well trusted by staff and partners and other stakeholders,” Mr Latin said.

“We want somebody that understands the operational side of an upstream business and puts safety at the top of the agenda.”

‘We want to be a bigger company’

© Supplied by Serica Energy

With that in mind, the chairman explained: “We want to be a bigger company” and the firm is turning its attention to mergers and acquisitions (M&A), namely overseas.

This means Serica is looking for a person who is comfortable managing an international portfolio.

“Having somebody that’s got experience running a company as it grows,” is important for the Serica as it hunts for someone to be a firm hand on the rudder.

Serica Energy laid out in its full year results for 2023: “Given the challenging UK fiscal regime, we continue to seek M&A opportunities elsewhere in the North Sea.

“For example, Norway offers a wide range of sub-surface opportunities and a relatively stable fiscal regime but less deal flow than UKCS.”

The Serica chairman laid out plans for “growing hubs”, the firm currently has two in the UK, and he said: “We want to be more and not necessarily in the UK given the current fiscal environment.”

Recent news makes the search ‘easier’

© Supplied by Serica Energy

With a high bar set for any prospective applicant’s CV, taking over Serica could be considered a tough task, however, recent news has made the firm’s search a little easier.

Ithaca Energy was on the hunt for a new chief executive, following Alan Bruce announcing his departure earlier in the year.

Serica’s chief financial officer says that Ithaca taking over ENI’s UK assets as the Italian firm picks up more than a third of shares in the UK operator will see that position being filled.

Martin Copeland, CFO of Serica, said: “ENI is going to be putting the CEO in there, so maybe that will make life a bit easier for us.”

Ithaca shared in a stock market update: “Eni will be entitled to recommend the nomination of the next proposed CEO of the Combined Group.”

With this option on the table, Ithaca could be closer to finding its next boss, meaning there’s one less firm in the North Sea looking to hire a chief executive.

Serica’s outgoing CEO

Wednesday is Mitch Flegg’s last day in charge of Serica Energy, in February he announced that he would be stepping down following the firm publishing its full year results in 2023.

Mr Flegg spearheaded the acquisition of Tailwind Energy in 2023 while in charge of Serica Energy.

On his last day at the helm, Mr Flegg said: “My term as CEO ends with these results. More than the metrics of the last six years, it is the quality of the team we have built at Serica that gives me the most satisfaction and pride.”

In Serica’s full year report, David Latin added: “I would like to take this opportunity to reiterate the Board’s appreciation for Mitch Flegg’s very significant contribution to the Company over many years, most recently as CEO since 2018.”