Vaalco Energy 2025 Q3 Earnings Sharp Revenue Drop and 90% Net Income Decline

Vaalco Energy (EGY) reported Q3 2025 earnings on Nov 11, 2025, with revenue plunging 56.5% to $61.01 million and net income collapsing 90% to $1.10 million. The company raised full-year production and sales guidance but cut capital spending by $58 million. Despite mixed operational results, management emphasized disciplined cost control and growth plans in Gabon and Côte d’Ivoire.

Revenue

Vaalco Energy’s total revenue for Q3 2025 fell sharply to $61.01 million, a 56.5% decline from $140.33 million in Q3 2024. The drop was driven entirely by reduced sales of crude oil, natural gas, and natural gas liquids, which accounted for all reported revenue. The segment’s performance was impacted by planned maintenance in Gabon and lower realized commodity prices.

Earnings/Net Income

The company’s net income for Q3 2025 plummeted to $1.10 million, a 90% decrease from $10.99 million in the prior year. Earnings per share (EPS) fell to $0.01, down from $0.10 in Q3 2024. The steep decline reflects lower sales volumes and prices, though reduced production expenses partially offset the impact. The EPS decline signals significant underperformance relative to 2024.

Post-Earnings Price Action Review

The strategy of buying Vaalco Energy shares after revenue raises has historically outperformed the market, with a median 5.43% price increase within 30 days. Over the past three years, this approach yielded returns exceeding the S&P 500’s average, suggesting investor optimism about the company’s growth potential. Despite Q3’s earnings miss, the stock’s post-earnings trajectory historically aligns with positive momentum, though recent volatility underscores market uncertainty.

CEO Commentary

CEO George Maxwell highlighted strong Q3 results, with 15,405 net revenue interest barrels of oil equivalent per day (NRI BOEPD) and $23.7 million Adjusted EBITDAX. He noted a 19% reduction in capital guidance to $225–260 million and raised full-year production and sales targets. Strategic priorities include FPSO refurbishment in Côte d’Ivoire, expanded drilling in Gabon and Egypt, and a $240 million credit facility to enhance liquidity.

Guidance

Vaalco raised 2025 production guidance to 15,405–16,910 NRI BOEPD and sales to 15,400–17,300, while cutting capital expenditures by $58 million. The company maintained its $0.0625 quarterly dividend and outlined 2026 projects, including FPSO refurbishment and drilling campaigns. Hedging programs for 500 Mbls in 2025 and 800 Mbls in 2026, with floor prices of $61–$62/bbl, aim to secure cash flow amid volatile commodity prices.

Additional News

Vaalco Energy announced a $0.0625 quarterly dividend for Q4 2025, marking its 16th consecutive payout. The dividend, yielding 6.38% at $3.92, underscores the company’s commitment to shareholder returns. Separately, the firm reported a Q3 non-GAAP loss of $0.10 per share, missing estimates by $0.08, and revenue of $61 million, below expectations by $1.5 million. Management cited planned Gabon maintenance and lower oil prices as key factors. Looking ahead, Vaalco emphasized 2026 drilling programs in Gabon and Côte d’Ivoire to boost reserves and production.