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Bullboard - Stock Discussion Forum Vermilion Energy Inc T.VET

Alternate Symbol(s):  VET

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The... see more

TSX:VET - Post Discussion

Vermilion Energy Inc > Where does VET book its Corrib Hedging Losses?
View:
Post by Quintessential1 on Oct 06, 2022 8:22am

Where does VET book its Corrib Hedging Losses?

This seems to be the million dollar question as even the author is unsure.

https://seekingalpha.com/article/4544779-vermilion-energy-eu-windfall-tax#comments

Hopefully it is in the EU country where they book their gains,

Still a chance for VET and Ireland to make a deal on future cap-ex that would reduce profits below the threshold.

GLTA Longs
Comment by Moemoney42 on Oct 06, 2022 9:50am
wouldn't VET be able to use the whole purchase value/capex of Corrib against gains in 2022?  If so that should greatly reduce risk of tax consequences this year..? 
Comment by Quintessential1 on Oct 06, 2022 10:08am
I believe Equimor Ireland is an longterm asset and must be depreciated accordingly.  Only the  real exploration costs of drilling, permits, manpower  things actually used up can be immediately written off.  EI does come with past tax losses that can be thrown at revenues but the author seems to account for these.  In short, I think VET is going to take a pretty good hit ...more  
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