Revenue at Corrib Gas operator Vermilion’s “high margin” Irish business dipped 6.7 per cent last year to C$302.4 million (€205.1 million).
The 2023 annual report for the Canadian-headquartered Vermilion Energy shows revenue fell C$21.94 million to C$302.4 million during the year. Production at Corrib was hit by planned maintenance during the third quarter of the year, it said. Still, revenue is more than a fifth ahead of 2021 levels.
With the outbreak of the Ukraine war in February 2022, Vermilion has benefited like other energy producers with the sharp increase in gas prices, with the annual report referring to “premium-priced European gas”.
Gas prices fell last year and this contributed to global revenue at Vermilion declining by 42 per cent from C$3.476 billion to $2.2 billion.
The Corrib gasfield contributes up to 29 per cent of Ireland’s natural gas consumption and all of the country’s gas production.
It is located about 83km off the coast of Co Mayo, in 350m of water. The distance from the seabed to the Corrib reservoir is a further 3,000m.
The annual report shows that operating expenses at the firm’s Irish unit more than doubled from C$16.58 million in 2022 to C$39.46 million last year.
Transportation costs at the Corrib Gas project for Vermilion nearly doubled from C$3.57 million to C$7.09 million.
At the end of March 2023, Vermilion became Ireland’s largest provider of domestic natural gas when it acquired Equinor’s 36.5 per cent interest in Corrib, giving it an operating interest of 56.5 per cent.
The report states that the new assets acquired contributed revenue net of royalties last year of C$161.7 million and net earnings of $43.6 million.
The report confirms that Vermilion paid C$488.89 million in cash for the 36.5 per cent share of the business.
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