By Robb M. Stewart

Vermilion Energy swung to a loss in the latest quarter despite a rise in the natural gas producer's output.

The Canadian company recorded a net loss of 145.5 million (US$106.9 million), or C$0.95 a share, against a year-earlier profit of C$15 million, or C$0.10 per share.

The decline mainly was due to unfavourable changes in Vermilion's mark-to-market unrealized derivative position that it said were driven by European gas and crude-oil contracts. That was partially offset by a deferred tax recovery on mark-to-market losses, coupled with an increased tax-asset valuation in Canada and Ireland on forward pricing, plus higher fund flows from continuing operations thanks to increased production.

Production for the quarter jumped 22% on last year to 125,618 barrels of oil equivalent a day. That included a 46% rise in natural-gas output to 539.29 million cubic feet daily, as well as a 31% rise in natural-gas liquids but a 27% fall in the production of crude oil and condensate to 23,692 barrels a day.

Sales from continuing operations increased to C$263.91 billion from last year's C$166.26 billion.

Vermilion said fund flows from its operations declined to C$232.3 million in the quarter from C$256 million in 2025, reflecting a loss on derivative contracts versus a gain the prior year, and lower North American gas pricing. Fund flows on ongoing operations only rose 10% to C$232.4 million

The company, founded in 1994 as a Canadian oil-and-gas explorer and producer focused on Alberta, in 1997 bought oil-producing assets in France that launched its push across Canada, Europe and Australia.

Vermilion is targeting average production in 2026 of between 118,000 and 122,000 oil-equivalent barrels per day.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 06, 2026 08:30 ET (12:30 GMT)

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