Noah Zivitz

Managing Editor, BNN Bloomberg

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Vermilion Energy Inc. is about to pay its first dividend in almost two years.

The Calgary-based oil and gas producer announced on Monday that its board of directors approved a quarterly dividend of six cents per share, to be paid on April 18 to shareholders of record on March 31.

The reinstatement of a dividend at Vermilion is another sign of the sector's turnaround as global energy prices surge amidst Russia's invasion of Ukraine.

Vermilion also said its fourth-quarter fund flows from operations surged to $322.2 million from $132.2 million; and its net debt fell to $1.6 billion at year end, compared to $2 billion at the end of 2020.

The company said it expects to hit its target of $1.2 billion in net debt in the second half of this year, and added that it will evaluate dividend hikes, special dividends, and share buybacks this year.

Vermilion's last dividend payment occurred on April 15, 2020, at a rate of 11.5 cents per share. The company then suspended payments after having earlier indicated it planned to cut its monthly dividend to two cents per share.