Last year, Corrib Gas operator, Vermilion’s Irish enterprise, a high-profit entity, underwent a drop in revenue of about 6.7 per cent, resulting in takings of C$302.4 million (€205.1 million). According to the 2023 annual report from Vermilion Energy, headquartered in Canada, revenue experienced a slump of C$21.94 million, ending with a figure of C$302.4 million for the year. Despite this, revenue levels are still over 20% above those of 2021.
Corrib’s production suffered a blow because of scheduled maintenance in the year’s third quarter, the report stated. In the wake of the Ukraine conflict, which erupted in February 2022, energy firms like Vermilion reaped the benefits of soaring gas prices, with the report alluding to the existence of expensively priced European gas.
Gas prices did take a tumble last year, resulting in a 42pc dip in Vermilion’s global revenue, from C$3.476 billion down to $2.2 billion. The Corrib gas field is responsible for providing up to 29 per cent of Ireland’s natural gas needs and all of its gas production.
The gas field can be found about 83 kilometres from the coast of County Mayo, under 350 metres of water. The distance from the ocean floor to the Corrib reservoir extends a further 3000 metres.
The annual report pointed out a significant increase in operating expenses at Vermilion’s Irish arm, with costs more than doubling from C$16.58 million in 2022 to C$39.46 million last year. Transportation costs for Vermilion’s Corrib Gas project also showed a sharp increase, nearly doubling from C$3.57 million to C$7.09 million.
In March 2023, Vermilion became Ireland’s premier provider of domestic natural gas after purchasing a 36.5% stake in Corrib from Equinor, which brought its own interest in Corrib to a total of 56.5%. According to the report, the newly acquired assets generated revenues of C$161.7 million after deducting royalties, as well as net earnings of $43.6 million, in the previous year.
Vermilion handed over C$488.89 million in cash to secure the 36.5% stake in the business, as confirmed by the report.
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