Shares of UK's Serica Energy drop after it reduces its annual production forecast

Serica Energy, a British company, cut its production forecast for 2025 on Wednesday after being hit by a temporary drop in production at the Triton production storage and offloading ship. Its shares fell nearly 14%.

Serica stated that production of the Triton vessel was curtailed because "of vibration issues in the compression train." They added that normal operations should resume by the end September, once repairs have been completed.

The oil and gas company now expects to produce 29,000-32,000 barrels equivalents per day in comparison with its previous projections of 33,000-35,000 BOEPD.

The company said that production of Triton reached over 25,000 boepd during August. It is working to increase production.

Serica reported in January that the Triton vessel had resumed production at the end of the last year after a problem with a gas compressor late October.

Analysts at Jefferies said that the problems at Triton were "negative, but manageable" and had no financial impact. However, "operational consistency at Triton must be achieved."

The setback in production comes amid a volatile market for oil, where prices are being pushed down by a slowing of demand from major economies as well as ongoing geopolitical uncertainty.

Serica said that the pipeline work scheduled to take place on the Bittern Field in November, and which will last about three weeks, could temporarily stop production at the Evelyn and the Gannet fields, owned by the company.

(source: Reuters)