Vermilion Energy bringing back dividend, adds Corrib stake
BNN Bloomberg
Almost two years after suspending its dividend as oil prices plummeted, Vermilion Energy is about to bring back a payout to shareholders.
Almost two years after suspending its dividend as oil prices plummeted, Vermilion Energy is about to bring back a payout to shareholders.
The Calgary-based oil and gas producer announced on Monday it's planning to start paying a six cent per-share dividend in April 2022.
The last time Vermilion paid a dividend was Apr. 15, 2020, when investors received 11.5 cents per share. Vermilion had subsequently planned to pay out another dividend at a reduced rate of two cents per share, but it instead halted all payments as crude oil prices collapsed in the early days of the pandemic.
The reinstated dividend was announced on Monday alongside news that Vermilion is buying Equnior ASA's Irish subsidiary, which holds a 36.5 stake in the Corrib natural gas field for US$434 million. Vermilion is already the operator of that project with a 20 per cent stake.
In a release, Vermilion said it expects the acquisition will add $361 million in free cash flow in 2022.
Vermilion said the deal with Equinor is expected to close in the second half of next year
