Parkmead Group swings to a loss amid 'record low' gas prices

Energy outfit The Parkmead Group said on Friday that it had swung to a loss as a result of "record low" gas prices weighing on revenues.

Parkmead said full-year revenues had more than halved to £4.08m from £8.3m, dragging the group to a pre-tax loss of £792,000 for the twelve months ended 30 June, a marked turnaround when compared to the £4.8m profit recorded a year earlier.

The AIM-listed group stated that much of its poor performance was a result of gas prices falling from highs of roughly €25.7 per megawatt-hour in October 2018 to lows not seen in "over a decade" of roughly €5.00 per megawatt-hour due to an oversupply of liquefied natural gas into the European market and the Covid-19 pandemic.

However, Parkmead said the future for the group was "bright", highlighting the fact that gas prices had "rebounded strongly" to approximately €14 per megawatt-hour in November.

Chairman Tom Cross said: "Despite revenues being impacted by the low gas price environment, 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 pandemic.

"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 for our shareholders."

As of 1020 GMT, Parkmead shares were up 5.99% at 29.36p.