vermilion-new00106 International oil and gas producer Vermilion Energy Inc. says the European windfall tax on fossil fuels will continue to take a bite out of its profits over the next 12 months. The Calgary-based company’s balance sheet has taken a hit as a wave of governments across Europe and the U.K. have hit energy firms with windfall tax measures, aimed squarely at companies reaping substantial profits from higher oil and gas prices in the wake of Russia’s invasion of Ukraine. In a bid to raise funds to help European consumers struggling with skyrocketing energy bills, EU member states approved a minimum 33 per cent tax on the 2022 and 2023 surplus profits of eligible oil and gas companies and some power-generation companies last October. In Ireland, where Vermilion has growing interest in offshore gas production, the government has just implemented a 75 per cent levy on the profits of fossil-fuel companies above an average baseline. Vermilion said it will pay an estimated $250 million in 2022 and $300 million in 2023 in windfall taxes, based on current price estimates for European gas, according to the company’s 2023 budget estimates released Friday. The company said it was forecasting free cash […]
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