Unidentified Questioner 6's questions to Vermilion Energy Inc (VET) leadership • Q1 2024
Question
An unidentified questioner asked for an explanation of the company's 2023 net loss, particularly in relation to strong cash flows and the impact of the windfall tax.
Answer
Anthony Hatcher, President and CEO, clarified the windfall tax's cash impact. Lars Glemser, VP and CFO, then explained that the 2023 net loss was driven by non-cash impairment charges. These charges resulted from a strategic shift to focus capital on the B.C. Montney asset, which led to the de-recognition of reserves in the U.S. and Saskatchewan business units, triggering accounting write-downs.