The Parkmead Group plc reported a loss in revenue and profits but an increase in assets in its preliminary results for the year ended 30 June 2020.
FINANCES
Revenue halved for the period to £4.1m (2019: £8.3m) and gross profit fell to £1.3m (2019: £5.7m).
Pre-tax profits before tax and non-cash impairment charges were £0.8m.
The group highlighted that gas prices had fallen from €25.7/MWh in October 2018 to lows “not seen in over a decade” to around €5.0/MWh in June 2020.
Parkmead added that this was due to the oversupply of liquefied natural gas (LNG) into the European market and the pandemic.
Gas prices have since risen to €14.0/MWh during November 2020.
The Aberdeen-based oil and gas group had cash balances of £25.7m.
Its total asset base increased by 9% to £89.8m (2019: £82.3m) and net assets rose to £71.3m (2019: £68.3m).
OUTLOOK
The group added it was in discussions with a number of leading, international service and oil companies and oil companies in relation to driving forward the Greater Perth Area (GPA) project.
“Parkmead is well positioned for the future.
“We have excellent UK and Netherlands regional expertise, significant cash resources, and a growing portfolio of high-quality assets.
“The group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led, growth strategy to secure opportunities that maximise future value.”
STRENGTH
Executive chairman Tom Cross said it had been an important year of progress for Parkmead despite the fall in revenue and low gas price.
“Parkmead has delivered growth in its asset base whilst retaining financial strength.
“This creates a strong foundation from which to build and Parkmead remains robust in the context of broader global uncertainty brought about by the Covid-19 pandemic.”
ASSETS
The group’s assets include producing onshore oil from four gas fields in the Netherlands. The company holds a 7.5% to 15% working interest in Geesbrug, Brakel, Grolloo and Diever West.
In the development stage, the group operates the GPA oil hub project in the UK Moray Firth, and holds stakes in a number of nearby oil fields which could potentially form part of a large joint development, such as Lowlander and Dolphin.
Parkmead has a stake in the Platypus gas development in the Southern North Sea and a number of oil and gas developments in the Netherlands.
In the exploration stage, Parkmead has interests in blocks in the UK West of Shetlands and onshore Netherlands.
The group was awarded interests in nine blocks in the UKCS 30th Licensing Round to add to its 42 blocks.
Parkmead’s other interests are in renewable energy.