Parkmead shares jumped on Tuesday after the diversified energy group returned to profit and boosted production levels at key assets.
Parkmead Group has reported a significant turnaround in its financial performance, posting a profit after tax of £4.9 million for the year ended June 2024, compared to a £42.3 million loss in the previous year.
The independent energy group achieved this recovery through increased operational output across its portfolio and a substantial reduction in tax liabilities.
Production from the company’s Dutch assets showed notable growth, with gross production increasing to 3.3 thousand barrels of oil equivalent per day, up from 3.0 thousand in 2023. This increase was driven by the successful development of the LDS-01 well and the steady performance of the Diever-02 facility following its return to production in February.
Despite the improved production figures, revenue for the period fell to £5.7 million from £14.8 million in the previous year, primarily due to lower average realised gas prices, which dropped to €34.23 per megawatt-hour from €105.73 in 2023.
“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,” said Parkmead’s Executive Chairman, Tom Cross.
“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.”