NEW YORK (TheStreet) -- Shares of Vaalco Energy (EGY) rose 17.2% on Friday after fourth-quarter earnings improved from a year earlier.
In the fourth quarter, Vaalco reported net income of $26.4 million, a reversal from a year-earlier loss of $18.9 million. For the year, Vaalco reported net income of $43.1 million, or 74 cents a share.
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The company's offshore oil wells in Gabon continue to be Vaalco's top money maker, with crude oil revenue coming in at $58 million in fourth quarter compared with $53 million in the same period of 2012. The company is slated to build two more production platforms in the region. Each platform is expected to drill multiple wells.
TheStreet Ratings team rates VAALCO ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about its recommendation:
"We rate VAALCO ENERGY INC (EGY) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."