Vaalco Energy quarter sales jump, ups guidance

Vaalco Energy Inc (LSE:EGY) told investors that second-quarter sales jumped 47% from the previous three months as higher Gabon liftings and Egyptian volumes drove a sharp rebound in earnings, while the company reaffirmed its increased 2026 production guidance.

Sales averaged 17,812 net revenue interest barrels of oil equivalent per day, above the midpoint of guidance, while production rose about 10% quarter-on-quarter to 16,688 BOEPD. Adjusted EBITDAX climbed to US$54.8 million from US$11.6 million in Q1, with net income swinging to US$42.4 million from a US$93.8 million loss. The reported profit included a US$43.7 million unrealised derivatives gain.

Vaalco maintained full-year NRI production guidance of 17,500 to 19,400 BOEPD and sales guidance of 17,100 to 20,050 BOEPD, both raised in May. Q3 production is forecast at 19,600 to 21,600 BOEPD, a 23% increase on Q2 at the midpoint as Côte d’Ivoire contributes for a full quarter. Production at the Baobab field restarted in June after its FPSO refurbishment, with Vaalco targeting its first 2026 Côte d’Ivoire crude lifting in August and the start of a new drilling campaign in September. Full-year capital expenditure guidance remains US$290 million to US$360 million after Q2 spending of US$103.6 million came in below the quarter’s guided range.