Parkmead revenue surges on Nertherlands gas production

Independent energy group Parkmead reported a 70% increase in full-year revenue on Friday as its gross profit more than trebled thanks to enhanced gas production in the Netherlands.

In its preliminary results for the year to 30 June, the company said revenue rose to £7m from £4.1m in 2017 as gross profit surged 242% to £4.1m. However, the company's pre-tax losses for the year widened to £5.9m from £4.3m the year before as exploration and evaluation expenses rose to £5.2m from £2.7m in 2017.

Parkmead said its total asset base was "strong" at £78.9m, while cash balances were $31m versus $23.8m the year before.

Further production enhancement work is planned on the group's Netherlands portfolio, including a new well at the Geesbrug gas field to maximise production, and development scenario analysis at the Ottoland oil and gas discovery.

Executive chairman Tom Cross said: "The team at Parkmead is working intensively to evaluate and execute further value-adding opportunities, which could provide additional upside to the company. These are primarily energy-related and include wider opportunities, which could broaden and enhance the group's asset base and revenue stream.

"Parkmead is well positioned for the future. We have excellent UK and Netherlands regional expertise, significant cash resources, and a growing portfolio of assets. The group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders."

At 1250 GMT, the shares were up 0.7% to 60.64p.