Vermilion Energy Slips into Quarterly Loss on Derivative Costs

Vermilion Energy reported a third-quarter loss of 34.6 million Canadian dollars, reversing a 2.56 million profit from the same period last year. The swing into the red stems primarily from noncash, mark-to-market losses on derivative contracts as forward oil and European gas prices climbed during the quarter.

Today, 18:05· Money Talk· 905 reads

Vermilion Energy Slips into Quarterly Loss on Derivative Costs

The company saw fund flows from operations dip to 236.9 million Canadian dollars, down from 253.8 million a year earlier. Daily production averaged 117,349 barrels, a marginal decline from the 119,062 barrels recorded in the previous year's third quarter. Despite these results, management remains focused on expansion, projecting full-year 2026 production to reach approximately 122,400 barrels per day.

Looking ahead, Vermilion has greenlit an exploration and development budget of 675 million to 725 million Canadian dollars for 2027, with 150 million earmarked for long-cycle projects. This investment aims to drive a 2% increase in output, targeting a range of 122,000 to 126,000 barrels per day. The firm also plans to boost its quarterly dividend by 4% to 0.14 Canadian dollars per share.

Vermilion Energy Slips into Quarterly Loss on Derivative Costs

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