Calgary-based Vermilion Energy posts $1.3B loss on oil and gas assets writedown

A $1.2-billion writedown in the value of its oil and gas assets around the world due to low global commodity prices resulted in a first-quarter net loss of $1.3 billion or $8.42 per share for Vermilion Energy Inc., the energy producer announced Tuesday.

The Calgary-based company, which operates in Canada, Australia, Ireland, the United States, Netherlands, Germany and France, cut its dividend in half in March and suspended it entirely in mid-April to cope with lower prices, saving about $420 million on an annual basis.

It also trimmed $100 million from its 2020 capital spending budget and announced $35 million in other cuts to expenses.

Global oil prices have fallen dramatically over the past two months due to demand destruction from measures to fight the COVID-19 pandemic, as well as lingering effects of a market share battle between Russia and Saudi Arabia.

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