A $250-million hit from a “windfall tax” on profits last year and a new European natural gas price cap haven’t dissuaded Vermilion Energy from spending money in countries such as Germany and Croatia. In fact, the Calgary-based company plans to increase its capital expenditures in Europe in 2023 as it sees larger returns in the energy-hungry region than in Canada or the United States. And it will do so even as windfall taxes from European Union (EU) members are likely to deliver another sizable hit to its bank account this year. “Obviously, we’re not happy to have nominally $500 million of windfall tax between ‘22 and ‘23, but it shows the resilience in our business in that we’re able to manage that,” Vermilion president Dion Hatcher said in an interview. “We are allocating capital to European projects . . . It’s still an attractive area.” On Friday, the intermediate-sized oil and gas producer, which has operations around the world, unveiled a $570-million spending plan for the new year. It includes a spending hike of seven per cent internationally, and a one per cent bump in North America. Overall, it represents a slight increase from 2022 levels as petroleum producers […]
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