14th Mar 2025 12:03
(Alliance News) - Vaalco Energy Inc on Friday said it is excited about "major projects" which it expects to "deliver a step-change in organic growth," as it posted a smaller annual profit.
The Canada and Africa-focused hydrocarbon explorer said pretax profit fell 6.9% to USD139.8 million in 2024 from USD150.1 million in 2023.
Revenue from crude oil, natural gas and natural gas liquids sales rose 5.3% to USD479.0 million from USD455.1 million.
The company produced 19,936 barrels of oil equivalent per day on a net revenue interest basis in 2024, up 6.6% from 18,710 boepd in 2023.
However, production costs increased 6.8% to USD163.5 million in 2024 from USD153.2 million in 2023. Depreciation, depletion and amortisation came in 24% higher at USD143.0 million from USD115.3 million, while general and administrative costs increased 25% to USD29.7 million from USD23.8 million.
Further, the average realised crude oil price faded 0.3% to USD65.64 per barrel in 2024 from USD65.83 in 2023.
Chief Executive Officer George Maxwell said: "As we look forward to 2025, we are excited about the major projects that we have planned which are expected to deliver a step-change in organic growth across our portfolio in the coming years. We have another drilling campaign at Etame [offshore Gabon] that we believe will expand our production and reserves considerably. In [Ivory Coast], we have commenced the floating production storage & offloading refurbishment project and are preparing for a drilling campaign in 2026 to augment the production and economic life of the Baobab field."
For 2025, the company aims to return over USD25 million to shareholders via its dividend programme. During 2024, it returned USD33 million.
In December, it paid a fourth quarter dividend of 6.25 US cents per share, the same as a year prior.
Last week Wednesday, Vaalco said it entered a new credit facility for up to USD300 million, with an initial commitment of USD190 million.
The facility is led by the Standard Bank of South Africa Ltd, Isle of Man Branch and replaces Vaalco's existing undrawn revolving credit facility that was provided by Glencore Energy UK Ltd.
"Closing this new credit facility will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects," CEO Maxwell said.
He added: "This facility enables us to fund any short-term capital funding needs that may occur as we execute the significant growth projects across our assets over the next couple of years. We appreciate the support shown by our lending group which we believe affirms the strength of our diverse asset base."
Last week Monday, the company said it acquired a 70% stake in CI-705 block offshore Ivory Coast. With the buy, Vaalco will become operator of the block with a 70% working interest and a 100% paying interest via a commercial carry arrangement.
Vaalco is partnering with Ivory Coast Exploration Oil & Gas SAS and Petroci.
CEO Maxwell said: "We believe the CI-705 block is favorably located in a proven petroleum system, near existing infrastructure with access to a strong growing domestic market with attractive upside potential."
Vaalco Energy shares were flat at 310.00 pence each on Friday noon in London.
By Tom Budszus, Alliance News slot editor
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