CALGARY – Vermilion Energy Inc. is reporting a net loss of $1.3 billion or $8.42 per share in the first quarter thanks to a $1.2-billion writedown in the value of its oil and gas assets around the world due to low global commodity prices.
The loss compares with a net gain of $39.5 million or 26 cents per share in the same period of 2019 and analyst expectations of a loss of about $43 million or 14 cents, according to the financial markets data firm Refinitiv.
The Calgary-based company cut its dividend in half in March and suspended it entirely in mid-April as oil prices fell due to demand destruction from measures to fight the COVID-19 pandemic, as well as lingering effects of a market share battle between Russia and Saudi Arabia.
Vermilion reported production of about 97,150 barrels of oil equivalent in the first three months of 2020, down from 103,400 boe/d in the year-earlier period.
Lower commodity prices were blamed for a drop in funds flow from operations to $170 million in the quarter ended March 31 from $254 million in the same period of 2019.
CEO Tony Marino says the company, which operates in Canada, Australia, Ireland, the United States, Netherlands, Germany and France, is seeing direct production impacts from pandemic measures only in its French operations.