Serica Energy (SQZ) Q3 2026 TU earnings summary

Production and operations

• 9M 2026 production averaged 37,100 boepd, up 44% YoY from 25,700 boepd; Q3 averaged 22,100 boepd, reflecting planned Bruce and Triton maintenance.

• Triton FPSO maintenance began 27 July; an engine change-out delayed restart to around end-November. Bruce resumed production on 12 September, with output currently around 20,000 boepd net.

• Current production is over 40,000 boepd before Triton resumes, including around 12,000 boepd from the acquired Southern North Sea gas portfolio; production is expected to reach around 65,000 boepd after restart.

• 2026 production is now expected to average just below 40,000 boepd, following the Triton maintenance extension.

Financial performance and guidance

• 9M revenue was $905 million, more than double $439 million in 9M 2025; Q3 revenue was $228 million versus $134 million in Q3 2025.

• 9M capital expenditure was $113 million versus $200 million in the same 2025 period; cash was $227 million and borrowings $300 million at 30 September, leaving net debt of $73 million.

• Total liquidity was $685 million at 30 September; Q3 outgoings included a $52 million FY2025 final dividend, $27 million cash tax payment and $43 million Spirit Energy transaction payment.

• 2026 post-tax CFFO guidance remains $450–475 million; opex guidance is $380–400 million, excluding $65 million Lancaster spend, and capex guidance is $175–195 million.

Organic growth and portfolio

• Bruce drilling is on track to start in Q3 2027; WAD5, SCE Development and SCW Development wells are planned, with first production expected within 12 months of drilling start.

• Operated near-field drilling opportunities could add up to 30,000 boepd, supporting portfolio production of 50,000 boepd into the next decade.

• Kyla environmental statement and field development plan have been submitted; Edradour Royal Sovereign and Spinnaker submissions are expected to follow as projects advance toward FID.

• Skerryvore drilling plans are progressing for 2027; the prospect targets 135 mmboe gross unrisked resources across two reservoirs near existing infrastructure.

• Partner consent was given for further Cygnus, Clipper South and Catcher infill wells; Tornado gas-processing negotiations with the Shetland Gas Plant are progressing.