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(Sharecast News) - Serica Energy has lowered its full-year production forecast after maintenance work at its Triton facility was extended, although the North Sea oil and gas producer maintained its cash flow guidance amid stronger gas prices.
The AIM-listed company said on Monday that production was now expected to average just below 40,000 barrels of oil equivalent per day (boepd) in 2026, following a delay in restarting the Triton floating production, storage and offloading (FPSO) vessel.
Annual maintenance at Triton began in late July and was initially expected to last around two months. However, additional work to replace an engine in one of its power generation units has pushed the anticipated restart date back to around the end of November.
Third-quarter production averaged 22,100 boepd, down from 50,200 boepd in the preceding quarter, reflecting scheduled maintenance at both Triton and the Bruce Hub.
Nevertheless, output over the first nine months rose 44% year-on-year to 37,100 boepd, while revenues more than doubled to $905m from $439m.
Serica said current production was running above 40,000 boepd, supported by the recent acquisition of Southern North Sea gas assets from Spirit Energy, which added around 12,000 boepd.
The company maintained its target of reaching production rates of approximately 65,000 boepd by the end of the year, alongside unchanged guidance for post-tax cash flow from operations of $450m-$475m.
Serica ended September with cash of $227m and net debt of $73m, following dividend, tax and acquisition-related payments during the quarter.
Looking ahead, the company said drilling at Bruce was scheduled to begin in the third quarter of 2027, with its planned operated drilling campaign potentially adding up to 30,000 boepd of incremental production.
Serica also confirmed plans to move from AIM to the London Stock Exchange's Main Market later this month, potentially making it eligible for inclusion in the FTSE 250 at December's index review.
Serica shares were down 2.6% at 272.6p by 1056 BST.
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