Vermilion loses $71.3 million in second quarter on 55 per drop in revenues

Vermilion loses $71.3 million in second quarter on 55 per drop in revenues

Vermilion loses $71.3 million in second quarter on 55 per drop in revenues

CALGARY — Lower prices for oil and gas around the world translated into a second quarter net loss on 55 per cent lower revenue for Canadian and international producer Vermilion Energy Inc.

The Calgary-based company reported Monday a net loss of $71.3 million on revenue of $193 million in the three months ended June 30, versus net earnings of $2 million on revenue of $428 million in the same period of 2019.

Production was about 100,400 barrels of oil equivalent in the quarter, down from 103,000 boe/d in the year-earlier period.

Vermilion’s European operations produced about 25,200 boe/d, a decrease of about 3,700 boe/d from the same period in 2019 mainly due to the curtailment of 3,000 barrels per day of French oil production because of the temporary shutdown of the Grandpuits refinery during the COVID-19 confinement period.

The company said it is ramping up French production after the refinery capacity was restored in mid-June.

An active first-quarter drilling program in Canada and the United States, meanwhile, boosted North American production by nine per cent to 69,900 boe/d.

Unlike many of its peers, Vermilion said it didn’t voluntarily reduce production because of low oil prices caused by lower demand during the pandemic lockdowns and overproduction by OPEC plus countries.

The quarterly report was the first since CEO Anthony Marino left the company in May. Vermilion appointed Lorenzo Donadeo as executive chairman and Curtis Hicks as president as part of a new executive committee governance model.

The company elected not to host an analyst conference call.

In a report, analyst Michael Dunn of Stifel FirstEnergy said Vermilion’s production slightly beat expectations.

He added the company’s cash flow was in line with forecasts after accounting for a $25-million gain from unwinding a cross currency interest rate hedging contract.

This report by The Canadian Press was first published July 27, 2020.

Companies in this story: (TSX:VET)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The newly built Parkland Regional Library Services. (Photo Submitted)
Parkland Regional Library system moves into new offices in Lacombe

“Someone with a Parkland Library card can borrow from 350 libraries in Alberta,” Ron Sheppard

boating stock metro
New owners of public boat launch on Sylvan Lake plans opening for May 2021

The Launch at Sylvan Lake is located at 5220 Lakeshore Dr.

Alberta has 3,651 active cases of COVID-19.  (File photo)
750 new COVID-19 cases identified in Alberta Sunday

Central zone currently has 1,182 active cases of the virus

The Pfizer-BioNTech vaccine deliveres to Canada are being delayed because of complications at their European distribution facility. THE CANADIAN PRESS/Nathan Denette
Delays of Pfizer vaccine delivery to impact Alberta’s vaccination plans

Alberta has administered 74,000 doses of the COVID-19 vaccine so far

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

Lacombe is looking at its options for reclaiming sewage lagoons that are no longer needed. Vesta Energy Ltd. has signed a deal to use three lagoons to store water for fracking.
Map from City of Lacombe
Energy company to use former Lacombe sewage lagoons to store water for fracking

Vesta Energy Ltd. will pay Lacombe more than $100,000 a year in 20-year deal

Alberta Chief Medical Officer of Health Dr. Deena Hinshaw said on Monday that11 more people had died from COVID-19, bringing the province’s death toll to 1,447. (Photography by Chris Schwarz/Government of Alberta)
Eleven more Albertans die from COVID-19

There were 739 people in hospital, 120 in ICU on Monday

Indigenous people gather for a ceremony for Cindy Gladue held at the courthouse in Edmonton, Alta, on Wednesday, January 13, 2021. Bradley Barton, a 52-year-old long-haul truck driver from Ontario on trial for manslaughter, is accused of killing Gladue. THE CANADIAN PRESS/Jason Franson
People stand in support of mother as new trial gets underway in death of Cindy Gladue

Bradley Barton, a long-haul truck driver from Ontario, will now be tried for manslaughter in the 2011 death

(Photo submitted)
RCMP say ice climber seriously injured after reportedly falling 12 metres near Abraham Lake

Police say man’s injuries were serious but not life-threatening

U.S. military units march in front of the Capitol, Monday, Jan. 18, 2021 in Washington, as they rehearse for President-elect Joe Biden’s inauguration ceremony, which will be held at the Capitol on Wednesday. (AP Photo/J. Scott Applewhite)
Biden aims for unifying speech at daunting moment for U.S.

President Donald Trump won’t be there to hear it

Facebook/ The Open Door 24/7 Integrated Response Hub- Wetaskiwin.
Wetaskiwin residents show support for 24/7 Integrated Response Hub

Wetaskiwin residents and City Council members showed support for Hub with positive signs.

Conservative Leader Erin O’Toole holds a press conference on Parliament Hill, in Ottawa on December 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No place for ‘far right’ in Conservative Party, Erin O’Toole says

O’Toole condemned the Capitol attack as ‘horrifying’ and sought to distance himself and the Tories from Trumpism

A passer by walks in High Park, in Toronto, Thursday, Jan. 14, 2021. This workweek will kick off with what’s fabled to be the most depressing day of the year, during one of the darkest eras in recent history. THE CANADIAN PRESS/Chris Young
‘Blue Monday’ getting you down? Exercise may be the cure, say experts

Many jurisdictions are tightening restrictions to curb soaring COVID-19 case counts

Most Read