Vermilion Energy Inc. reported a net loss of $87.2 million in the first quarter, compared with a profit of $45.3 million a year earlier, as the company was hit by unrealized derivative losses and lower production.
The Calgary-based oil and gas producer said the loss amounted to 54 cents per diluted share for the quarter ended March 31, down from earnings of 28 cents per share in the same period last year.
Revenue fell 12% to $1.2 billion from $1.36 billion in the first quarter of 2025.
Vermilion said its realized hedging losses, including unrealized derivative losses, totaled $125 million in the quarter, compared with $35 million a year earlier.
Production averaged 82,500 barrels of oil equivalent per day, down from 86,000 boe/d in the first quarter of 2025.
The company attributed the decline to planned maintenance shutdowns and natural field declines, partially offset by stronger output from its operations in France and Australia.
CEO Dion Hatcher said the company remains focused on generating free cash flow and reducing debt, despite the challenging commodity price environment.
"Our first-quarter results reflect the impact of lower commodity prices and hedging losses, but we continue to execute on our strategy of maintaining a strong balance sheet and delivering value to shareholders," Hatcher said in a statement.
Vermilion also declared a quarterly dividend of 36 cents per share, payable July 15 to shareholders of record on June 30.
