VAALCO Energy (LSE:EGY) reported net income of $42.4 million, or $0.39 per diluted share, for the second quarter, reversing a $93.8 million net loss in the first quarter and up from $8.4 million a year earlier.
The Houston-based oil and gas producer, with operations spanning Gabon, Egypt, Côte d'Ivoire and Equatorial Guinea, sold 17,812 net revenue interest barrels of oil equivalent per day, above the midpoint of its guidance and up 47% from the first quarter.
Earnings (adjusted EBITDAX) reached $54.8 million, nearly five times the $11.6 million generated in the first quarter, driven by higher realised commodity prices and hedging gains.
Production resumed in June at the Baobab field offshore Côte d'Ivoire following a yearlong refurbishment of its floating production, storage and offloading vessel, with the first crude lifting scheduled for August.
"The strong first half results and our expectation of continued operational execution have given us the confidence to affirm our increased full year production and sales guidance for 2026", said George Maxwell, Vaalco's chief executive.
Vaalco affirmed full-year 2026 production and sales guidance, raised in May, while keeping its capital budget unchanged despite adding extra drilling in Egypt.
The company forecasts third-quarter sales volumes of 17,200 to 18,900 NRI barrels of oil per day, with production expected to rise 23% at the midpoint on a full quarter of Côte d'Ivoire output.
Vaalco declared a quarterly dividend of $0.0625 per share, payable 22 September.
News Intelligence what this means for the company
Vaalco swung to a $42.4m Q2 profit on the back of Baobab field production resuming in June after a yearlong FPSO refurbishment, with sales volumes jumping 47% quarter-on-quarter to 17,812 BOE/d. The restart of its Côte d'Ivoire asset—which had ceased operations in January 2025—is now flowing, with the company guiding for a 23% production rise at the midpoint in Q3 as a full quarter of output kicks in, and management affirming raised full-year 2026 guidance despite keeping capex flat.
The Baobab restart removes a major operational overhang and validates the capex discipline: Vaalco is delivering higher production and cash generation without budget creep, while declaring a dividend. The path to Q3 and beyond hinges on sustaining Côte d'Ivoire output and executing the Baobab Phase 5 drilling programme planned for H2 2026.
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