(Alliance News) - Vaalco Energy Inc on Wednesday reported higher year on year sales and income, and declared a 92% higher quarterly dividend while looking forward to future growth.
The Houston, Texas-based company engaged in hydrocarbon exploration reported pretax income of USD18.3 million for the first quarter of 2023, up from USD7.5 million for the same quarter the prior year. It was down from USD24.7 million in the fourth quarter of 2022.
Vaalco Energy said revenue increased by 17% year on year to USD80.4 million from USD68.7 million, representing a 17% decrease from USD96.6 million in the fourth quarter. The company sold 1.2 million barrels of oil equivalent, up from 616,000 year on year.
Vaalco Energy said total operating costs and expenses more than doubled year on year to USD58.8 million from USD28.6 million. These included a 54% rise in production expense to USD28.2 million from USD18.4 million and depreciation, depletion and amortization more than quadrupling to USD 24.4 million from USD4.7 million.
Vaalco Energy announced a quarterly dividend of USD0.0625 per share, up 92% from USD0.0325 per share year on year.
Vaalco Energy expects to sell between 1.4 million and 1.6 million barrels of oil equivalent in the current quarter. It is moving forward with development plans in Equatorial Guinea, with Chief Executive Officer George Maxwell saying he is "excited about the future" in the country.
Vaalco Energy had combined with TransGlobe Energy Corp in October, 2022.
"We are well positioned and financially stronger with more reserves, production and future potential than at any other time in our history," Maxwell commented.
"We are a diversified, multinational exploration and production company with...no bank debt, a growing cash flow position and meaningful upside opportunities that we are evaluating for future organic growth. We have built a company of size and scale that is capable of supporting sustainable shareholder returns."
Shares in Vaalco Energy were down 11% to 300.00 pence each on Wednesday afternoon in London.
By Emma Curzon, Alliance News reporter
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Vaalco Energy (EGY)