Vaalco Energy Inc on Friday said profit was down in the first quarter of 2025, though revenue increased, as it said it was well positioned to fund growth over the next few years.
The Canada and Africa-focused hydrocarbon explorer said pretax profit fell 20% to $23.8 million in the three months to the end of March from $29.9 million a year ago.
Revenue from crude oil, natural gas and natural gas liquids sales rose 10% to $110.3 million from $100.2 million.
The company produced 17,764 net revenue interest barrels of oil equivalent per day, towards the high end of its guidance and up 5.4% from 16,850 boepd in the prior year.
However, production expenses increased 40% to $44.8 million from $32.1 million. Depreciation, depletion and amortisation was 17% higher at $30.3 million from $25.8 million, while general and administrative costs increased 35% to $9.1 million from $6.7 million.
Chief Executive Officer George Maxwell said: ‘We delivered another successful quarter, once again meeting or exceeding our guidance... We continue to execute our strategic vision, with multiple accomplishments achieved in the first quarter that lay the foundation for profitable growth in 2025 and beyond... We are doing all of this without impacting production or sales forecasts for 2025 due to the strong performance of our assets in Gabon and Egypt.’
In March, it paid a first quarter dividend of 6.25 US cents per share. It will pay a further quarterly cash dividend of 6.25 cents per share in June.
Looking ahead, CEO Maxwell said: ‘We believe that we are well positioned to fund the meaningful growth and opportunities that we have planned over the next few years which should lead to even greater growth and value for the remainder of the decade.’
Shares in Vaalco Energy were flat at 290.00 pence each in London on Friday morning.
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