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Vaalco Energy PLC on Friday cited declining oil prices as the main reason for weaker results in the first half of 2025. For the six months that ended June 30, the Houston, Texas-based mining company posted net revenue of $207.2 million, down 4.5% from $216.9 million. Net income halved to $16.1 million from $35.8 million a year ago. Vaalco said the average realised crude oil price received was $65.62 per barrel, down 12% from $74.75. This compared to an average Brent oil price of $72.03 per barrel in the first half, 14% lower on-year. A 5.4% rise in sales failed to offset price headwinds. Vaalco sales totalled 4,358 million barrels of oil equivalent for the six-month period, up from 4,134 million in 2024. In the second quarter ended June 30, net revenue fell 12% to $96.9 million from $110.3 million. Net income plummeted 70% to $8.4 million from $28.2 million a year prior. Production expenses decreased 23% to $40.3 million from $52.4 million, mainly due to lower spending in the Ivory Coast division. However, exploration expenses rose to $2.5 million from none the year prior, due to the purchase of seismic data for one of the firm’s Ivory Coast prospects. Vaalco reiterated full-year guidance and declared an interim dividend per share of 6.25 US cents, unchanged from the previous year. Vaalco shares rose 7.3% to 295.00 pence on Friday afternoon in London. The company also noted a new loan agreed in the first quarter, led by Standard Bank of South Africa Ltd, Isle of Man Branch. It is for an initial $190 million commitment, which could increase to $300 million. Chief Executive George Maxwell said: ‘We believe that we are well positioned to fund the significant 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.’ The US firm mainly targets African oil and gas, and earlier in 2025, ‘decided to defer the drilling of additional wells in Canada to reduce the company’s overall capital expenditures’. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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