Ver­mil­ion En­ergy records op­er­at­ing prof­its of €15.4m

Irish Independent - Business Week - - FRONT PAGE - Gor­don Dee­gan

ONE of the Cor­rib Gas Part­ners, Ver­mil­ion En­ergy, last year recorded op­er­at­ing prof­its of €15.4m.

New ac­counts filed show that Ver­mil­ion En­ergy Ltd recorded the op­er­at­ing prof­its af­ter rev­enues in­creased by 38.6pc, go­ing from €75m to €104m. The com­pany did record a pre-tax loss of €5m af­ter pay­ing in­ter­est charges of €12m and in­cur­ring gas-hedg­ing losses of €7.9m.

The pre-tax losses take ac­count of non-cash de­ple­tion and de­pre­ci­a­tion of as­sets costs of €68.9m.

The Cor­rib Gas Part­ners are made up of Shell, which has a 45pc share in the field, with Sta­toil hav­ing a 36.5pc share and Cana­dian-owned Ver­mil­ion own­ing the re­main­ing 18.5pc share.

How­ever, in July of last year, Shell Ire­land dis­posed of its share­hold­ing to the Cana­dian Pen­sion Plan In­vest­ment Board in a strate­gic part­ner­ship with Ver­mil­ion. That deal is po­ten­tially worth as much as €1.08bn.

As part of the agree­ment, Ver­mil­ion is to in­crease its stake to 20pc and be­come the op­er­a­tor of the project when the deal closes be­fore the end of this year.

The di­rec­tors state that the rev­enues from the de­vel­op­ment of the field will be suf­fi­cient to make the com­pany prof­itable in fu­ture. At the end of De­cem­ber last, Ver­mil­ion had a share­hold­ers’ deficit of €50.82m.

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