Parkmead, the independent energy group focused on growth through gas, oil and renewable energy projects, has reported its preliminary results for the year ended 30 June 2024.
HIGHLIGHTS
Excellent operating performance maintains strong financial position
- Profit after tax for the period of £4.9 million (2023: £42.3 million loss) driven by increased operational output across the portfolio and a material reduction in tax liabilities
- Revenue for the period of £5.7 million (2023: £14.8 million) fell from the prior year due to lower average realised gas price of €34.23/MWh (2023: €105.73/MWh) offset by increases in both gas and electricity production
- Gross margin of £3.4 million (2023: £12.5 million) reflecting the low-cost nature of the portfolio
- There are no remaining offshore liabilities as at 30 June 2024
- Parkmead's balance sheet strengthened by 33% during the year with net assets increasing to £19.6 million (2023: £14.7 million)
- The Group maintains healthy cash reserves of £9.5 million providing appropriate financial flexibility to pursue further investment opportunities (2023: £11.6 million)
Increased production onshore Netherlands driven by the successful development of LDS-01
- Gross production for the period across the Group's Dutch assets increased to 3.3kboe/d (2023: 3.0kboe/d)
- Diever-02 has performed steadily since it was successfully brought back on stream in February following the full recovery of LDS-01 reserves, which outperformed the Operator's post well high case
- Parkmead recently negotiated a unitisation of the VDW-A prospect which sits partially on its Drenthe VI concession, marking a critical step on the path for the partners to make a Final Investment Decision on this attractive target in 2025
- During the year, a full review of prospectivity was completed by the Drenthe VI partners. Opportunities have now been high-graded with the largest prospects being progressed
- Technical work has continued on the Geesbrug field where there is potential for two further wells. The Drenthe V partners anticipate making a final investment decision on these opportunities in the second half of 2025
UK offshore portfolio enhanced through successful 33rd round award of the Fynn Beauly discovery
- Parkmead accepted the award of licence P2536, consisting of blocks 14/5a, 14/20d and 15/11a, along with its sole partner Orcadian Energy (50% working interest)
- These blocks contain seven undeveloped discoveries, including the material Fynn Beauly accumulation (gross resource estimate 292mmboe)
- Good progress has been made on the Company's operated Skerryvore prospected (50% working interest)
- Parkmead believes there is excellent value in its UK offshore portfolio and continues to focus on work streams to progress its interests in these assets
Continuing steady cash flow generated at Parkmead's operated Kempstone Hill wind farm
- Electricity generation at Kempstone Hill increased to 2,570MWh in the year (2023: 2,446MWh) resulting in revenue for the period of £0.6 million (2023: £0.7 million) with the increased electricity generation offset by lower electricity prices
- The asset has continued to perform strongly post year-end, with uptime averaging 99% between July and September 2024
Major wind farm opportunity at Pitreadie
- The Group continues to progress discussions with a major European renewable energy developer regarding the development opportunity at Pitreadie for a wind farm of up to 100MW
- Negotiations are continuing in respect of a formal joint venture agreement ahead of approaching local planning authorities to progress this important project
Progressing plans to deliver shareholder value
- Parkmead is in discussions regarding a potential transaction that would involve a sale of its UK offshore assets
- The Company continues to evaluate acquisition and investment targets across both the UK renewable energy and international E&P sectors
Parkmead's Executive Chairman, Tom Cross, commented:
'We have delivered another year of strong operational results, which has led to a healthy profit for the Group and earnings of over four pence per share.
Parkmead continues to benefit from its balanced portfolio, and in particular its exposure to the UK renewables market which the new UK Government sees as a key area for growth. We welcomed the removal of the de facto ban on onshore wind energy developments across England which may unlock a range of investment opportunities.
As set out at the time of the interims, Parkmead has a valuable long term asset in its UK offshore oil licences and its UK ring fence tax loss pool. The Company is in ongoing discussions as it seeks to deliver shareholder value from this asset.
The Group's robust financial position provides Parkmead with a distinct advantage as we seek to further enhance shareholder value through acquisition opportunities across the Group.'
Source: Parkmead
