By continuing to use our service, you agree to our use of cookies. Vermilion Energy (VET), along with many of its competitors, have much lower share prices than they have in recent years because of this. Updated on March 12th, 2020 by Josh Arnold. This poses a problem for companies that engage in the production or transportation of oil, along with a variety of other industries that feel the impact. Vermilion Energy pays monthly dividends, as opposed to the more common quarterly schedule. DIVIDEND GROWTH (3 YEAR)-3.44. DIVIDEND GROWTH ... Toronto Stock Exchange. However, there is so much uncertainty surrounding Vermilion, not the least of which is the recent dividend cut, that we recommend investors are cautious with Vermilion and wait for more clarity on its ability to survive the price war taking place in the oil industry. In 2013, Vermilion Energy was listed on the New York Stock Exchange, giving it exposure to a new group of United States-based investors. But investors should take extreme caution with Vermilion, as its business model has deteriorated significantly due to recent events.
Get Free Updates. With that said, Vermilion Energy’s growth runway appears to have been significantly altered in recent weeks with the oil price war. However, the recent, precipitous decline in the share price has erased much of those returns that took years to build. Thus, all financials are in US dollars, unless otherwise noted.
Investors can also appreciate the company’s diversification not only from a geographical perspective, but in its commodity mix as well. Információ az eszközéről és internetkapcsolatáról, beleértve az IP-címét, Böngészési és keresési tevékenysége a Verizon Media webhelyeinek és alkalmazásainak használata közben. In 2013, Vermilion Energy was listed on the New York Stock Exchange, giving it exposure to a new group of United States-based investors. Free cash flow was negative in 2010 and 2011, but has since been positive every year. Vermilion Energy is a Canadian oil and gas production company with a global operational footprint.
This exposes Vermilion Energy to additional oil-rich regions while simultaneously isolating the company from any regional economic downturns or natural disasters. It therefore remains on our list of stocks with 5%+ dividend yields. Vermilion Energy has achieved double-digit percentage FFO growth in many of the past years, as seen below: Along with strong profit growth (as measured by fund flows from operations), Vermilion’s business generates a substantial amount of cash flow. However, this depends on whether oil prices can recover in the near term, or whether the downturn in the commodity markets gets even worse. With the dividend having been cut in half in early March in response to the oil price decline, the new payout of ~$1 per share (in U.S. dollars) annually should be easier for Vermilion to cover, even if FFO and FCF are temporarily impaired. Of course, quality assets are of little consolation when oil and gas prices plunge. Still, with the share price at just over $4, Vermilion seems to be pricing in an astounding amount of bad news. In 2003, Vermilion Energy changed its corporate structure to that of a Canadian income trust, then converted back to a corporation in 2010.
Vermilion shares have been decimated as a result.
Vermilion’s diversification is focused on stable parts of the world. Key Data for Vermilion Energy Inc. (VET), including dividends, moving averages, valuation metrics, and more. You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below: Click here to download your free spreadsheet of all 58 monthly dividend stocks now.
Source: Investor presentation, page 5 TSX Trust.
We see Vermilion’s business model and dividend as sustainable through a transitory period of oil price weakness, but much depends upon how oil prices behave from here. The company has produced in excess of $2 per share in FFO annually in recent years, but won’t be anywhere close to that today.