Serica Energy reports rebound in November production
By Josh White
Date: Thursday 27 Nov 2025
(Sharecast News) - Serica Energy reported a sharp rebound in November production on Thursday, and said it expected full-year output to meet guidance, as it prepared to add further barrels through acquisitions and continues to work through operational issues at the Triton hub.
The AIM-traded company said output averaged 25,700 barrels of oil equivalent per day in the first nine months of 2025, reflecting prolonged downtime at the Triton FPSO and planned maintenance across its portfolio.
Third-quarter production was 27,500 daily equivalent barrels, the same level as the first quarter, but production jumped to 50,300 barrels per day in November before a planned outage at Triton began on 23 November.
Serica said it expected the shutdown to be completed in mid-December.
Chief executive Chris Cox said the recent recovery demonstrates the underlying strength of Serica's assets.
"Production rebounded in November to once again average above 50,000 barrels of oil equivalent per day, a level that more accurately reflects the potential of our portfolio," he said.
Cox added that the imminent addition of output from the Lancaster field, following the completion of the Prax Upstream acquisition, "will add a further short-term boost, and the resumption of regular liftings from Triton will return us to significant and sustainable cash generation going forward."
He said that would support Serica's "two-pronged growth strategy", combining investment in the existing portfolio with mergers and acquisitions.
However, he criticised the fiscal framework set out in the Budget, describing it as "a missed opportunity to kick-start investment across the UK North Sea", although he noted that the company now had "greater clarity about the fiscal and regulatory regimes in which our investment decisions will be made."
Revenue for the first nine months of the year was $439m, including $134m in the third quarter, down slightly from $139m a year earlier.
Realised Brent oil prices averaged $70 a barrel over the period compared with $76 a barrel in 2024, while realised NBP gas prices rose to 89p per therm from 71p.
Capital expenditure totalled $200m, in line with guidance, and was focused on the Triton drilling programme and work to prepare the Belinda field for production.
Serica ended September with $41m of cash, down from $174m at the end of June, reflecting $62m of capital spending, the absence of Triton lifting payments and a $51m final dividend paid in July.
Borrowings were unchanged at $231m, leaving net debt at $190m and total liquidity at $300m, including undrawn borrowing facilities.
Operationally, Serica said maintenance at Triton completed in July, but temporary issues with the compression train and flare system limited production in the third quarter.
Output had improved, and testing of a second compressor was under way, which the company expected would enable additional production, including at the Belinda field.
Production at the Bruce hub has also recovered following maintenance and the resumption of bull-heading operations, returning output there to more than 20,000 barrels of oil equivalent per day.
Alongside Prax Upstream, due to complete in mid-December, Serica expects to finalise the TotalEnergies and ONE-Dyas acquisitions in the first half of 2026.
It also acquired a 40% stake in the P2530 licence in November, adding the Wagtail oil discovery and two exploration prospects to its portfolio.
The company said the Wagtail interest would add an estimated eight million barrels of net 2C contingent resources.
On the financial front, Serica noted that the Energy Profits Levy would remain in place until 2030, before being replaced by a new Oil and Gas Price Mechanism taxing revenues above trigger levels.
It said the government's North Sea Future Plan confirmed existing licences would be honoured and introduce transitional energy certificates for developments adjacent to licensed blocks.
Serica reaffirmed that it expected full-year 2025 production to average 27,000 to 28,000 daily equivalent barrels, and capital expenditure of around $250m.
Operating expenditure was expected to be about 10% higher than the previously guided $330m due to a stronger sterling.
The company said it remained committed to moving from AIM to the London Stock Exchange's Main Market following publication of audited 2025 accounts, and would issue 2026 guidance on 21 January.
At 1238 GMT, shares in Serica Energy were down 5.83% at 169.7p.
Reporting by Josh White for Sharecast.com.
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