Serica Energy (AIM:SQZ), the AIM-listed North Sea oil and gas producer, said on Monday that 2026 production will now average just below 40,000 boepd, down from earlier expectations, after annual maintenance at its Triton floating production, storage and offloading (FPSO) vessel ran longer than planned.
The oil and gas operator identified the need for an engine change-out in one of the power generation units during final restart checks, pushing the resumption of production to around the end of November from an original estimate of roughly two months following the start of maintenance on 27 July.
"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," said Chris Cox, Serica's chief executive.
Production for the first nine months of 2026 reached 37,100 boepd, up 44% from 25,700 boepd in the same period last year, with the Southern North Sea gas portfolio acquired from Spirit Energy contributing roughly 12,000 boepd on top of current production of over 40,000 boepd ahead of Triton's restart.
Third-quarter production of 22,100 boepd was broadly in line with expectations, reflecting planned annual maintenance at both the Bruce and Triton hubs; the Bruce hub itself resumed output on 12 September and is now producing roughly 20,000 boepd net to Serica, predominantly gas.
Revenue for the first nine months more than doubled to $905 million, from $439 million a year earlier, with the third quarter contributing $228 million against $134 million in the prior-year period.
Capital expenditure of $113 million for the nine months came in below the $200 million spent in the same period of 2025 and in line with guidance.
Cash stood at $227 million at 30 September, down from $326 million at the end of June, after outgoings in the quarter that included a $52 million final dividend for 2025, a $27 million cash tax payment in July, and the $43 million payment to Spirit Energy on completion of the Southern North Sea acquisition.
Borrowings held steady at $300 million, leaving net debt of $73 million at the end of the quarter and total liquidity of $685 million, comprising cash and $458 million of undrawn committed reserves-based lending availability.
Despite the production setback, Serica maintained its post-tax cash flow from operations (CFFO) guidance at $450 million to $475 million, citing strength in prevailing gas prices, alongside opex guidance of $380 million to $400 million, excluding $65 million of Lancaster spend, and capital expenditure guidance of $175 million to $195 million.
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On the growth pipeline, Serica said the drilling sequence for its Bruce hub, comprising the WAD5, SCE and SCW development wells, has been finalised, with drilling still set to begin in the third quarter of 2027 and first production expected within 12 months of spud.
The company is also finalising a rig contract for a wider multi-well campaign it says could add up to 30,000 boepd of incremental production, and is progressing plans to drill the Skerryvore exploration prospect, targeting gross unrisked prospective resources of 135 million barrels of oil equivalent, next year.
Serica confirmed its prospectus for the move from AIM to the Main Market is due for release later this week, with admission scheduled four trading days later, a step that would make the company eligible for entry into the FTSE 250 in the December indices review.
Guidance for 2027 is due in Serica's next trading and operations update, scheduled for 20 January 2027.