Unidentified Shareholder's questions to Vermilion Energy Inc (VET) leadership • Q1 2024
Question
An unidentified shareholder asked about the discrepancy between Vermilion's strong cash flow generation and its reported net loss for 2023.
Answer
VP and CFO Lars Glemser explained that the net loss was driven by significant non-cash impairment charges. These charges were triggered by a strategic shift in capital allocation towards the B.C. Montney, which resulted in the derecognition of reserves in other areas like the U.S. and Saskatchewan that were no longer in the immediate 5-year development plan. This accounting adjustment does not impact the company's cash flow.