Canada’s Vermilion Energy reverses Q4 loss
Canadian producer Vermilion Energy, which is active in North America, Europe and Australia, said March 7 it had Q4 2021 net earnings of C$345mn (US$270mn), reversing a C$147mn net loss in the previous quarter and a C$57.7mn loss in Q4 2020.
Net earnings in 2021 were C$1.1bn, reversing a C$1.5bn loss in 2020 sustained on Covid-related impairments.
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Fund flows from operations in Q4 2021 increased 23% sequentially, to C$332mn, largely due to higher commodity prices, in particular the 88% increase in European natural gas prices.
With higher European gas prices, Vermilion now expects free cash flow from the acquisition of an incremental 36.5% interest in Ireland’s Corrib field to reach about C$500mn, or more than 80% of the purchase price. The acquisition, announced in November 2021, is expected to close in the second half this year.
Total production in 2021 fell to 85,408 barrels of oil equivalent (boe)/day from 95,190 boe/day in 2020, Vermilion said. Natural gas production averaged 233.6mn ft3/day, down from 257mn ft3/day in 2020.