Parkmead Group PLC on Friday said it expected long-term low risk core revenue from producing Dutch gas fields and UK renewable energy assets, as it reported an annual loss.
Parkmead shares jumped 24% to 17.72 pence each on Friday morning in London.
The Netherlands and UK-focused gas explorer said in the financial year that ended on June 30, it swung to a loss of £35.3 million from a profit of £4.0 million a year prior.
Revenue climbed 22% to £14.8 million from £12.1 million.
Notably, exploration and evaluation expenses ballooned to £33.0 million from £1.1 million. It incurred an impairment of property, plant and equipment of £13.0 million in financial 2023, compared to none a year prior.
Further, Parkmead paid £2.4 million in UK windfall tax, compared to none in financial 2022. The UK government’s energy levy is a windfall profit tax imposed in response to rising consumer energy bills amid the cost of living crisis. It came into effect in May 2022.
Looking ahead, Executive Chair Tom Cross said: ‘Parkmead has a number of carefully selected opportunities across the UK and Dutch energy sectors, which it is actively working on to maximise returns.’
He added that the company’s tax position meant it was ‘exceptionally well-placed’ regarding making potential acquisitions.
CEO Cross said: ‘We are refocusing our offshore UK efforts on acquisitions and also on attractive projects such as Skerryvore, which are simpler and lower cost than the Greater Perth Area and so present clear opportunities to build increased value for shareholders.’
Further, at its Netherlands exploration & production business, Parkmead has plans to firm up its joint venture’s exploration strategy for 2024. ‘Seismic reprocessing on the highly productive Drenthe VI concession has identified a number of exciting new leads and prospects. Work to mature this portfolio of opportunities has continued throughout 2023,’ the company said.
Regarding its UK renewable energy portfolio, it said: ‘As we benefit from a full year of revenue and electricity generation from Kempstone Hill, the company continues to identify and analyse further value-adding renewable energy opportunities. Parkmead is investing in the renewables’ arena alongside our oil and gas projects. This is with the aim of continued diversification as we build a balanced portfolio of energy assets.’
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