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Bullboard - Stock Discussion Forum Vermilion Energy Inc. T.VET

Alternate Symbol(s):  VET

Vermilion Energy Inc is an international oil and gas producing company. It engages in full-cycle exploration and production programs that focus on the acquisition, exploration, development, and optimization of producing properties in North America, Europe, and Australia. The majority of Vermilion's revenue has derived from the production and sale of petroleum and natural gas. In each market, the company relies on a host of drilling and well completion techniques to keep production at attractive levels. It derives a majority of revenue from Canada.

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Vermilion Energy Inc. > Windfall tax
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Windfall tax

galaxyr (26) | September 16, 2022 07:06 pm

Will VET, not be able to reduce its 2022 Irish taxes from the Corrib Sea by deducting the $500 million purchase price from its acquisition from Equinor and or use it's over $400 million in tax pools from the Corrib? Why would VET have to pay a windfall tax on earnings outside the EU? It's a Canadian listed company. I have a hard time thinking they have to pay additional taxes on Australian Brent oil earnings or north american earnings to the EU. Or am I missing something?

RE:Windfall tax

mnztr (71) | September 16, 2022 07:12 pm

hopefully they can set up a trading arm and sell the gas to that trading arm and declare income in Canada. 

RE:Windfall tax

stockmarket1 (242) | September 16, 2022 10:54 pm

Even though VET is a Canadian company. My understanding is any company that holds a footprint any parts of Europe, would be part of it.
galaxyr wrote: Will VET, not be able to reduce its 2022 Irish taxes from the Corrib Sea by deducting the $500 million purchase price from its acquisition from Equinor and or use it's over $400 million in tax pools from the Corrib? Why would VET have to pay a windfall tax on earnings outside the EU? It's a Canadian listed company. I have a hard time thinking they have to pay additional taxes on Australian Brent oil earnings or north american earnings to the EU. Or am I missing something?


RE:RE:Windfall tax

Overertune (24) | September 16, 2022 11:39 pm

So EU wants to tax US and Canadian oil/gas companies for all their revenues?  Isn't that a joke?

RE:RE:Windfall tax

Carlo2021 (31) | September 17, 2022 08:10 am

galaxyr wrote:

Will VET, not be able to reduce its 2022 Irish taxes from the Corrib Sea by deducting the $500 million purchase price from its acquisition from Equinor and or use it's over $400 million in tax pools from the Corrib? Why would VET have to pay a windfall tax on earnings outside the EU? It's a Canadian listed company. I have a hard time thinking they have to pay additional taxes on Australian Brent oil earnings or north american earnings to the EU. Or am I missing somethin
 

generally tax treaties would reduce taxation in a jurisdiction to the income earned in that jurisdiction .
 

RE:RE:RE:Windfall tax

Quintessential1 (10624) | September 17, 2022 02:03 pm

The same way they have to pay royalties to the EU via Ireland.

I am sure they will make use of any tax pools and write offs that they are allowed including possibly reinvesting capital, (this tax year), to reduce taxable revenue.  That is what the accountants are for.

However, if the EU passes this windfall tax they can and will impose it on VET and it probaby will eat into shareholder returns moving forward at least temporarily. I am not sure how long investors will shoulder cap-ex over returns or how long the EU will impose windfall taxes so that the pile just keeps being pushed forward.  

It can only be imposed on the EU holdings however.  Not the USA, Canada or Australia.

GLTA Longs


Carlo2021 wrote: galaxyr wrote:

Will VET, not be able to reduce its 2022 Irish taxes from the Corrib Sea by deducting the $500 million purchase price from its acquisition from Equinor and or use it's over $400 million in tax pools from the Corrib? Why would VET have to pay a windfall tax on earnings outside the EU? It's a Canadian listed company. I have a hard time thinking they have to pay additional taxes on Australian Brent oil earnings or north american earnings to the EU. Or am I missing somethin
 

generally tax treaties would reduce taxation in a jurisdiction to the income earned in that jurisdiction .
 



RE:RE:RE:RE:Windfall tax

Overertune (24) | September 17, 2022 02:22 pm

If windfall tax only applies to Europe revenues, who is going to sell to them next year?  Let these idiots live in the dark.

RE:Windfall tax

prested (333) | September 16, 2022 11:13 pm

The Europeans, like governments everywhere, thnk they can do a lot of things which reality proves they cannot. Don't assume that because they were able to agree over Ukraine (to even their own surprise) that they will be able to come to any agreement about how this ill thought out propsal could be anything except a total abortion.  Remember, unlike Ukraine, they will not have America on their side, so I don't see any proposal going anywhere. Right now Europe needs America and this propsal is anti-American interests.

RE:RE:Windfall tax

Moemoney42 (1256) | September 16, 2022 11:20 pm

I think the tax could get a bit of opposition as well.. might not be a guaranteed thing.. I'm sure the industry will be at the table with a reality check.. will it be understood.. who knows..?? 

RE:Windfall tax

EnergyWatcher55 (26) | September 17, 2022 05:27 pm

VET operates in Ireland and would be subject to Ireland's taxes. Its that simple. 

RE:RE:Windfall tax

Quintessential1 (10624) | September 18, 2022 07:36 am

You don't think that Ireland is part of the EU?


EnergyWatcher55 wrote: VET operates in Ireland and would be subject to Ireland's taxes. Its that simple. 


RE:RE:Windfall tax

Overertune (24) | September 18, 2022 07:40 pm

Whatever taxes they want, they have to tell the company ahead of time and let the company decide whether they want to provide services.  You can just ate the food and then tell them it should be free?!

tax can't go backwards. Even third world countries don't do that.  I can't imagine eu is coming up with this.  No wonder their economy is all messed up.

RE:RE:RE:Windfall tax

Abedim15 (120) | September 19, 2022 09:21 am

Unfortunately in this case I believe you are incorrect. They will in fact tax "excess" profits for the entire year of 2022 regardless of the fact that the decree won't be introduced until September 30th. Vermillion will be making lots of money nonetheless 

RE:RE:RE:RE:Windfall tax

stockmarket1 (242) | September 19, 2022 09:58 am

And they'll end up paying a lot due too.



Abedim15 wrote: They will in fact tax "excess" profits for the entire year of 2022 regardless of the fact that the decree won't be introduced until September 30th. Vermillion will be making lots of money nonetheless 


RE:RE:RE:RE:Windfall tax

Moemoney42 (1256) | September 19, 2022 11:01 am

If the tax is introduced for 2022 they will have the Corribe acquisition to counter those profits.. as previously mentioned by someone here.. Europe would be foolish to impose a "windfall tax" on a sector they need to have invest in production desperately.. I'm sure the industry players in Europe will table this fact and pose it this way.. if you want to be reliant on outside production/factors for energy security, like the mistake you made with Russia, then I'd suggest you stop the talk of gutting the profits of the companies best positioned to end that reliance.. and remind them of why they're in this position in the first place..!!!!

RE:RE:RE:RE:RE:Windfall tax

Oldnagger (1546) | September 19, 2022 11:42 am

Moemoney42 wrote: If the tax is introduced for 2022 they will have the Corribe acquisition to counter those profits.. as previously mentioned by someone here.. Europe would be foolish to impose a "windfall tax" on a sector they need to have invest in production desperately.. I'm sure the industry players in Europe will table this fact and pose it this way.. if you want to be reliant on outside production/factors for energy security, like the mistake you made with Russia, then I'd suggest you stop the talk of gutting the profits of the companies best positioned to end that reliance.. and remind them of why they're in this position in the first place..!!!!

I am not sure how things will play out for 2022. After all VET had significant hedges on their own production of nat gas in Europe . The other 36.5% of Corrib being purchased from Equinor belongs to VET in the sense that the income snce Jan 1 is being deducted from the settlement price , yet who is the taxable entity ?

RE:RE:RE:RE:RE:RE:Windfall tax

TVR (26) | September 19, 2022 02:41 pm

The taxable entity is Equinor Ireland which is what VET is buying.  Therefore they inherit any tax liability in Equinor Ireland.  However, if any WPT is based on taxable income as per the EU announcement, the accumulated unused tax loss carry forward should shelter VET from regular and windfall taxes for a few years.