Posted: 28/03/25

Parkmead, the independent energy group focused on growth through gas, oil and renewable energy projects, is pleased to report its interim results for the six-month period ended 31 December 2024.

 

HIGHLIGHTS

 

Sale of UK North Sea Licences

•  Parkmead announced the signing of an agreement to sell its wholly owned subsidiary, Parkmead (E&P) Ltd to Serica Energy (UK) Ltd in December 2024.
• Completion of the transaction is anticipated to occur in the second quarter of 2025, at which point the first £7 million of the £14 million of firm cash consideration will be received.
• Up to a further £120 million of contingent cash consideration could become payable, subject to the approval of future developments on the Skerryvore and Fynn Beauly licences.
• Parkmead has retained 100% of its cash producing assets, namely its interests in the gas fields in the Netherlands and its wholly owned UK wind farm in Scotland.

 

Public consultation launched at Glenskinnan Renewable Energy Park

• Parkmead’s owned land at Pitreadie is a centrally located, core part of the site of the potential Glenskinnan Renewable Energy Park being developed in conjunction with Galileo Empower, a leading European renewable energy developer.
• Pre-application public consultations have now been launched for this major integrated project consisting of up to 98 MW in generating capacity across 14 wind turbines, 20 MW in solar photovoltaic arrays and 30 MW in battery storage.
• Parkmead is working with Galileo to finalise commercial arrangements ahead of the submission of a Section 36 planning application to the Scottish Government later in 2025.

 

High quality drilling targets identified across the Netherlands gas fields

• Average gross production for the period across the Group's Netherlands assets was 12.7 million cubic feet per day ("MMscfd"), approximately 2,194 barrels of oil equivalent per day ("boepd").
• The joint venture partnership is progressing several attractive, high return targets.
• Extensive subsurface scoping exercise completed in 2024, delivering potential for sanction of up to four wells in 2025.
• The Group recently agreed the unitisation of the VDW-A prospect, which sits partially on its Drenthe VI concession.

 

Focused strategy – actively reviewing further acquisitions

• Parkmead is well positioned to pursue value-adding acquisitions and has a number of growth opportunities that are being evaluated.
• The team is focused on targeting further cashflow generating renewable energy assets onshore UK and on international E&P opportunities.

 

Financial Summary

• Revenue for the six-month period was £2.1 million (1H FY24: £3.4 million) in line with internal estimates reflecting reduced net production of 181boepd (1H FY24: 269boepd) following the benefit of LDS-01 in the prior period
• Dutch TTF gas prices have remained at healthy levels, broadly in line with the prior period at €38.16/MWh (1H FY24: €38.56/MWh)
• Improved operational performance at Kempstone Hill, with uptime increasing to 99% (1H FY24: 91%) as a result of maintenance on Turbine 1 in the prior period
• Significant reduction in cost of sales to £0.9 million (1H FY24: £1.5 million) due to reduced sales volumes in the Netherlands
• Dutch operating costs have remained closely controlled at just £18.6 per barrel of oil equivalent
• Parkmead has made several cost cutting measures to drive efficiency at the Company following the pending sale of its operated UK offshore portfolio, including reducing some staff positions and office space. These one-off items together with certain non-cash, share valuation type costs outwith the Group’s control led to Administrative Expenses of £2.2 million (1H FY24 £0.9 million)
• As a result of these one-off exceptional items, cashflow from operations in the period saw a net cash outflow of £0.1 million (1H FY24: £2.0 million inflow), and the Group recognised a net loss for the period of £1.2 million (1H FY24: £0.7 million profit)
• Total assets were £23.7 million at 31 December 2024, equal to 21.7 pence per share (30 June 2024: £27.3 million)
• The Company maintained healthy cash balances of £6.8 million at 31 December 2024, equal to 6.3 pence per share (30 June 2024: £9.5 million)

 

Parkmead’s Executive Chairman, Tom Cross, commented:

“I am pleased to report on an important period for Parkmead. The Company has made excellent progress towards finalising the sale of Parkmead (E&P) Limited. Parkmead and Serica are on schedule to achieve completion before mid-year, unlocking £14 million in firm cash for Parkmead. This places the Group in a strong position to pursue value adding acquisitions and make further investments in our existing gas and renewable energy projects.

 

The launch of the Glenskinnan Renewable Energy Park consultation is the culmination of several years of work for Parkmead. We are excited by the potential value that can be created for shareholders as we progress the project with Galileo.”

 

The Parkmead Group plc

+44 (0) 1224 622200

Tom Cross (Executive Chairman)

Andrew Smith (Executive Director – Business Development)

 

Cavendish Capital Markets Limited

+44 (0) 20 7220 0500

Marc Milmo / Seamus Fricker – Corporate Finance

Iain MacArthur – Sales h

 

Please see the full pdf version of the announcement here, or in the Financial Reports section of the website.