Energy developer Parkmead has swung again into profitability following a tripling of revenues pushed via surging fuel costs.
The Aberdeen-based corporate mentioned its “high-quality Dutch assets” carried out specifically neatly after ultimate yr’s transfer to double Parkmead’s pastime within the Grolloo, Geesbrug and Brakel onshore fuel fields to fifteen in line with cent. With no hedging contracts to restrict its publicity to rises or falls in marketplace costs, Parkmead’s revenues flourished as the price of fuel surged from roughly €25 in line with megawatt hour in June of ultimate yr to €160/MWh in March.
“The innovative royalty deal we completed last summer is proving to be highly advantageous and is adding considerable value to Parkmead,” leader government Tom Cross mentioned. “Parkmead is 100% unhedged and is without delay benefitting from those further fuel gross sales at upper costs.
“We now plan to increase our activity in the Netherlands with a firm drilling campaign planned for 2022/23.”
The AIM-traded corporate posted revenues of £4.6 million right through the six months to the tip of December, up from £1.5m in the similar length a yr previous. Gross benefit rocketed via 389% to £3.8m as benefit margins jumped from 50% to 82%.
Profit prior to tax got here in at £1.3m, in comparison to a prior lack of £1.4m, whilst at working degree earnings have been £1.9m.
The crew, which has additionally been increasing into renewable power, has confirmed and possible reserves of 45.6 million barrels of oil an identical. It added that it’s “well-positioned” for additional acquisitions within the oil, fuel and renewables sectors.
Parkmead has already bought a spread of property beneath the management of Mr Cross, who in the past headed up Dana Petroleum. At Dana, he used acquisitions to construct the trade into some of the North Sea’s main independents prior to it used to be offered to Korea’s KNOC for £1.9 billion in 2010.
Shares in Parkmead closed the day past’s buying and selling 3p upper at 52p.