Vaalco shares soar despite widened loss as production and revenue grow

Vaalco PLC on Friday reported a widened loss, but its shares surged following strong operational growth and higher production.

Shares in the Africa-focused energy development and exploration company were up 11.4% at 468.00 pence per share on Friday morning in London.

Vaalco recorded a pretax loss of USD19.5 million for the three months ended September 30, widened from a loss of USD2.5 million a year earlier.

However, net revenue was USD147.0 million, up from USD61.0 million. The company said this was primarily due to higher oil sales volumes and higher realised commodity prices.

The realised commodity price for the third quarter of 2026 was USD83.64, up 63% from USD51.26 a year earlier.

Average daily production increased 27% to 25,284 barrels of oil equivalent per day from 19,887 barrels of oil equivalent per day, while average daily sales rose 44% to 18,454 barrels of oil equivalent per day from 12,831 barrels of oil equivalent per day.

Revenue gains were offset by a loss on net commodity derivative instruments, which widened to USD57.0 million from USD1.1 million a year earlier.

The company declared a quarterly interim dividend of 6.25 US cents per share, unchanged from the previous quarter.

Looking ahead, Vaalco said it expects fourth-quarter sales of between 20,800 barrels of oil per day and 22,600 barrels of oil per day, up 18% at the midpoint quarter-on-quarter, and production of between 18,800 barrels of oil per day and 20,900 barrels of oil per day.

Chief Executive Officer George Maxwell said: "The third quarter results continue to demonstrate our ability to successfully execute on our strategy as we deliver on our forecasts and grow production in a strong commodity price environment.

"As we look to 2027, we are projecting significant increases in production and strong sales, which coupled with continued attractive pricing should generate solid operational cash flow and adjusted earnings before interest, tax, depreciation, amortisation and exploration expense generation."

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