Vermilion has a 36.5pc share in the gas field off the Mayo coast
The Corrib gas field, off the Co Mayo coast
A significant shareholder in the Corrib gas field, currently challenging an EU windfall energy tax regime, has paid out dividends of €686.95m over the past two years.
Accounts for Vermilion Energy Corrib Ireland Ltd show it paid dividends of €621.95m last year and it declared a further dividend of €65m in September this year.
The operator of Corrib gas, Vermilion bought the Irish arm of Norwegian state energy giant Equinor in March last year. It had a 36.5pc share of Corrib gas.
In the deal, Vermilion paid Equinor €331.7m in cash for the 36.5pc share of the gas field.
Prior to the sale going through in March 2023, Equinor Energy Ireland Limited paid out a dividend of €350m to its Norwegian parent in the first quarter of 2023.
Subsequent to the sale, the firm, renamed Vermilion Energy Corrib Ireland Ltd, paid out a dividend of €271.95m to its Irish parent, Vermilion Oil and Gas Ireland Ltd, last year.
It declared a further €65m dividend to its Irish parent last September.
This was part of a €105m dividend declared by Vermilion Oil & Gas Ireland Ltd’s Irish subsidiaries.
Vermilion Oil & Gas Ireland Ltd subsequently paid the €105m dividend to its sole shareholder, Vermilion Netherland BV.
The new accounts for Vermilion Energy Corrib Ireland Ltd show that last year it was hit with a €44.4m tax bill last year arising from the EU windfall energy tax regime.
The accounts also show that last year, Vermilion Energy Corrib Ireland Ltd recorded pre-tax profits of €236.95m. Its revenues declined by 19pc from €422.2m to €343.93m.
However, the company’s post-tax profit came to €151.2m after it incurred a corporation tax charge of €85.7m that included the €44.4m windfall energy tax bill.
Vermilion Energy Corrib Ireland Ltd is one of three Vermilion companies to bring a challenge to the EU windfall energy tax regime in the Commercial Court here.
Last July, Mr Justice Michael Quinn agreed to a request from the parties to have the matter referred to the European Court of Justice.
The energy windfall tax, the Temporary Solidarity Contribution, was introduced as an emergency intervention by the EU in October 2022.
It was aimed at addressing high energy prices as a result of Russia’s war in Ukraine. Consumers were hit by soaring bills for their gas and electricity supplies. The energy windfall tax applied for 2022 and 2023. The Government has estimated that the tax would raise in the range of €200m to €450m.