A Corrib Gas field firm, currently challenging an EU windfall energy tax regime, 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 this year and 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 the 36.5% Corrib Gas shareholder 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 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 that included 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.
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 being hit by much higher bills for gas and electricity.
The energy windfall tax applied for 2022 and 2023 and the Government here has 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.
Reporting by Gordon Deegan
