Serica Energy (LON:SQZ) shares tumbled more than 11% on Wednesday after the company cut its 2025 production guidance by 10% following operational setbacks at the Triton FPSO in the U.K. North Sea.
The company now expects production of 29,000–32,000 barrels of oil equivalent per day (boepd), down from a previous range of 33,000–35,000 boepd.
The Triton FPSO is operating at a “significantly reduced rate” due to a vibration problem in the gas compression trains. Repair work on compressor bearings is scheduled to restore normal operations around the end of September.
The maintenance aims to enable a two-gas-compressor operational state, which would provide backup redundancy for the facility.
The Triton FPSO ramp-up in August had reached over 25,000 boepd net to Serica, contributing to a total SQZ Group production of more than 55,000 boepd.
Dana Petroleum, the facility operator, notified Serica that temporary reductions were necessary while maintenance continues.
Jefferies said, “Another Triton FPSO operational issue (UKNS) means production across the facility is once again ‘running at a significantly reduced rate,’” and that operational consistency “must be achieved” to meet full-year targets.
In addition, a three-week shutdown of the Bittern field, where Serica holds a 64% interest, has been moved forward to November 2025 to replace a section of subsea pipe.
The work at Bittern will temporarily halt production from the Evelyn and Gannet fields, both 100% owned by Serica and scheduled to bring new wells online in 2025.
Jefferies estimated that the combined impact of FPSO and subsea work will reduce net production by over 20,000 boepd in the second half of 2025.
Serica has said production from other assets remains robust, averaging close to 30,000 boepd net in recent weeks.
The company noted that the full portfolio has the potential to reach more than 55,000 boepd once all Triton fields are back online.
A Serica spokesperson said, “Normal production operations are expected to resume around the end of September,” emphasizing that the company is working to restore full operational capacity at the FPSO.
Jefferies described the setbacks as “negative but manageable,” citing Serica’s balance sheet strength reported in the first half of 2025 results.
The brokerage warned, however, that achieving operational consistency at Triton will be critical for meeting full-year production objectives.
The updated guidance reflects both technical issues on the FPSO and rescheduled subsea work, with the combined effect prompting a 10% reduction from the company’s previous estimate.
Production from the Triton FPSO and associated fields had contributed the majority of Serica’s net output in mid-August, before the operational interruptions and scheduled maintenance.
The adjustments underline the challenges of ramping up North Sea production, where subsea and FPSO work are tightly linked to daily output.
Serica maintains its broader 2025 targets within the revised range, highlighting ongoing recovery plans and expected completion of maintenance by late September and November respectively.
Source :
https://www.investing.com/news/earnings/serica-energy-shares-sink-over-11-after-2025-production-guidance-cut-4232668#google_vignette
