Canada’s Vermilion Energy Boosts Q3 Fund Flows
Vermilion Energy, a Calgary-based producer active in North America, Europe and Australia, said November 9 its fund flows from operations increased quarter-on-quarter in Q3 2020 while it managed to trim slightly its net loss, compared to Q2 2019.
Fund flows from operations rose to C$114.78mn (US$88.5mn) from C$81.5mn in Q2 2020, but was down from C$216.15mn in Q3 2019. Net loss in the third quarter was C$69.93mn, a slight improvement from the second quarter loss this year of C$71.3mn, but up from loss of C$10.2mn in Q3 2019.
The sequential improvement, Vermilion said, was largely driven by commodity price increases, particularly in global oil benchmarks and European natural gas benchmarks. With higher fund flows, free cash flow for Q3 was C$83mn, and Vermilion was able to pay down C$55mn on its credit facility.
Production in the quarter averaged 95,471 barrels of oil equivalent (boe)/day, down 5% sequentially, and reflected natural decline, plant turnarounds and limited capital investments. Production in North America and Australia declined 7% and 14%, respectively, compared to the second quarter, while European production edged 3% higher, primarily due to the June re-start of the Grandpuits refinery in France.
Natural gas production in Q3 2020 averaged 256.3mn ft3/day, down sequentially from 274.4mn ft3 in the second quarter, but marginally higher from 253.4mn ft3/day in Q3 2019.