Vaalco Energy Inc on Thursday reported a significantly lower interim profit as operating costs ballooned.

The Houston, Texas-based company engaged in hydrocarbon exploration said pretax profit in the first half of 2023 fell to $36.6 million from $68.9 million a year ago.

This was mainly due to operating costs which increased to $147.2 million from $66.5 million. Further, the interest expense was higher at $3.9 million compared to $121,000 a year before.

Revenue from crude oil, natural gas and natural gas liquids sales rose 5.6% to $189.6 million from $179.6 million.

Meanwhile, in the second quarter of 2023, the realised crude oil price declined 48% to $59.37 per barrel from $113.38 a year before. For the first half of 2023, the average realised crude price was $61.92 per barrel, down 45% from $111.92 a year ago.

Vaalco Energy shares were flat at 305.00 pence each on Thursday morning in London.

Copyright 2023 Alliance News Ltd. All Rights Reserved.