Serica Energy cuts production outlook as Triton restart delayed

Serica Energy PLC on Monday lowered its annual production forecast after extending maintenance at its Triton facility in the North Sea, but maintained its cash flow guidance amid strong gas prices and a more diversified portfolio.

The London-based oil and gas producer now expects average production in 2026 to be just below 40,000 barrels of oil equivalent per day, following delays to the restart of the Triton floating production, storage and offloading vessel.

Maintenance at Triton began on July 27 and was initially expected to last around two months. However, additional work to replace an engine in one of the power generation units has pushed the anticipated restart to around the end of November.

Serica said production averaged 22,100 boepd in the third quarter, down from 50,200 boepd in the second quarter, reflecting planned maintenance at both the Bruce and Triton hubs.

For the first nine months of 2026, production averaged 37,100 boepd, up 44% from 25,700 boepd a year earlier.

Revenue more than doubled to USD905 million in the nine-month period from USD439 million a year earlier, while third-quarter revenue rose 70% to USD228 million from USD134 million.

Despite the Triton delay, Serica maintained its full-year post-tax cash flow from operations guidance of USD450 million to USD475 million, supported by higher gas prices and contributions from its enlarged portfolio.

Operating expenditure guidance remains at USD380 million to USD400 million, excluding USD65 million of Lancaster spending, while capital expenditure is expected to be between USD175 million and USD195 million.

Current production exceeds 40,000 boepd, supported by approximately 12,000 boepd from Southern North Sea gas assets recently acquired from Spirit Energy.

Serica expects production to reach around 65,000 boepd by the end of the year once Triton resumes operations.

As of September 30, the company held USD227 million in cash, down from USD326 million at June 30, while borrowings remained unchanged at USD300 million, leaving net debt of USD73 million.

Chief Executive Chris Cox said: "While the extended maintenance downtime required at the FPSO is frustrating, it is necessary, and we remain on track to hit production rates of 65,000 boepd from our enlarged portfolio by the end of the year."

Looking ahead, Serica expects to begin drilling at its Bruce hub in the third quarter of 2027, with first production anticipated within 12 months.

Its planned drilling programme across 2027 and 2028 could add up to 30,000 boepd of incremental production from operated assets alone.

Separately, Serica said it expects to publish a prospectus later this week for its planned transfer from London's AIM market to the Main Market, with admission scheduled four trading days later.

The move would make Serica eligible for inclusion in the FTSE 250 at the December index review.

Serica expects to provide its 2027 guidance on January 20.

Shares in the company were 3.9% lower at 269.01 pence in London on Monday morning.

Copyright 2026 Alliance News Ltd. All Rights Reserved.