VAALCO Energy, Inc. reported a net income of $58.5 million for the fiscal year ending December 31, 2024, a slight decrease from $60.4 million in the previous year. The company's total revenue increased to $478.99 million, up from $455.07 million in 2023, primarily driven by higher sales volumes in its Cote d'Ivoire segment. The overall production volume for the year was 7.26 million barrels of oil equivalent (MBoe), with an average realized price of $65.64 per Boe, reflecting a marginal decline from $65.83 per Boe in 2023. The increase in revenue was offset by higher production expenses, which rose to $163.5 million, attributed to inflationary pressures and costs associated with the acquisition of Svenska Petroleum Exploration Aktiebolag.
In 2024, VAALCO completed the acquisition of Svenska for $40.2 million, funded by cash on hand. This acquisition added a 27.39% non-operated working interest in the Baobab field in Cote d'Ivoire and a 21.05% interest in a non-producing discovery offshore Nigeria. The company also secured a drilling rig for its 2025/2026 drilling campaign in Gabon, with plans to drill multiple development and appraisal wells. The FPSO in Cote d'Ivoire is scheduled for maintenance, which will temporarily halt production, impacting revenues until it returns to service.
Operationally, VAALCO's production in Gabon contributed $206 million to total revenue, down from $260 million in 2023, due to lower sales volumes. The Egypt segment generated $146 million, a decrease from $161 million, while the Canadian segment contributed $32 million, slightly down from $33.7 million. The Cote d'Ivoire segment, however, saw a revenue increase to $95 million, reflecting the impact of the recent acquisition. The company reported a significant increase in credit losses, primarily related to receivables from the Egyptian General Petroleum Corporation (EGPC).
Looking ahead, VAALCO's capital program for 2025 is projected to range between $270 million and $330 million, focusing on free cash flow generation and shareholder returns. The company plans to continue its strategic approach of maximizing production while managing costs effectively. However, it faces challenges from fluctuating commodity prices, geopolitical tensions, and regulatory changes that could impact its operations and financial performance. The company remains committed to enhancing its internal controls and addressing identified weaknesses in its financial reporting processes as it integrates the new acquisition and prepares for future growth.
About VAALCO ENERGY, INC.
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