Corrib gas field firm challenging EU windfall energy tax pays €687m dividends in two years

Vermilion Energy Corrib Ireland Ltd paid dividends of €621.95m last year and a further dividend of €65m this September

Vermilion purchased the Irish arm of Norwegian state energy giant, Equinor in March of last year which had a 36.5% share of Corrib Gas

A Corrib Gas Field firm, currently challenging an EU windfall energy tax, has paid out dividends of €686.95m over the past two years.

New accounts for Vermilion Energy Corrib Ireland Ltd show that it paid out dividends of €621.95m last year and it declared a further dividend of €65m in September of this year. 

The operator of Corrib Gas, Vermilion purchased the Irish arm of Norwegian state energy giant, Equinor in March of last year which had a 36.5% share of Corrib Gas.

In the deal, Vermilion paid Equinor €331.7m cash for the 36.5% 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.

Vermilion Energy Corrib Ireland Ltd declared a further €65m dividend to Irish parent, Vermilion Oil & Gas Ireland Ltd in September and this 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 accounts for the 36.5% Corrib Gas shareholder Vermilion Energy Corrib Ireland Ltd show it was hit with a €44.4m tax bill last year arising from the EU windfall energy tax regime.

The accounts show that last year Vermilion Energy Corrib Ireland Ltd recorded pre-tax profits of €236.95m. However, the company’s post-tax profit totalled €151.2m after it incurred a corporation tax charge of €85.7m including the €44.4m windfall energy tax bill.

Vermilion Energy Corrib Ireland Ltd is one of three Vermillion companies to bring a challenge to the EU windfall energy tax regime in the Commercial Court and in 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 to address high energy prices as a result of the war in Ukraine with consumers hit by much higher bills for gas and electricity. The tax applied for 2022 and 2023 and the Government estimated that the tax will raise in the range of €200m to €450m.

Vermilion Energy Corrib Ireland Ltd recorded the pre-tax profits of €236.95m after its revenues declined by 19% from €422.2m to €343.93m.