Parkmead Group swings to annual loss on higher costs and lower revenue

Oil and gas company The Parkmead Group swung to a pre-tax loss in the 12 months to the end of June, as higher costs, lower revenue and impairment charges took their toll.

In the year to 30 June, the London-listed company posted a £30.8m loss compared with a £1m profit in 2014, while revenue declined 24.7% year-on-year to £24.7m, due to the ongoing slump in oil prices.

Parkmead added its commitments on the Athena oil field in the Netherlands, for which the group also incurred in a 312.9m non-cash impairment charge, meant it booked an increase in expenses in the year, although it has since renegotiated the deal to lower its operating costs.

Meanwhile, the company confirmed first commercial gas production has got underway at the Diever West gas field.

"We are delighted to achieve first gas from the Diever West field in the Netherlands, which provides an important additional revenue stream for Parkmead,” said group executive chairman Tom Cross.

“The company has already received revenues from the first gas sales from the field."

Parkmead shares were down 1.56% to 70.14p at 1445 GMT on Friday.