'Important year' for group
Parkmead moves into profit at year end
Executive Chairman, Tom Cross (pictured), said it had been an “important year of progress” for the Aberdeen company.
“The Group moved into gross profit as a result of increased gas production and the cost reduction programme in the UK. This is an outstanding achievement for Parkmead at a time when global oil prices have remained low.”
Parkmead’s gas production acts as a natural hedge in the challenging oil price environment.
“We are delighted to have significantly increased production at the Diever West gas field, which increases Parkmead’s cash flow. New reservoir modelling indicates that Diever West could be more than double the size originally expected,” said Mr Cross.
“We are also pleased to have been able to increase our stakes in core areas of the Group’s portfolio during the year, particularly around the Greater Perth Area oil hub in the UK North Sea, where Parkmead has strengthened its position.
“The Group is in discussions with leading, international service companies and oil companies with regards to the Greater Perth Area.
“The team at Parkmead is working intensively to evaluate and execute further value-adding opportunities which could provide additional cash flow to the Company. Parkmead is analysing both oil and gas, and wider energy sector opportunities, which could broaden and enhance the Group’s revenue stream.
“Parkmead is well positioned for growth. We have excellent regional expertise, significant cash resources, and a growing, low-cost gas portfolio.
“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.”
· Gross profit for year to end June of £1.2 million (2016: £4.6 million loss)
· Total asset base of £82.2 million at 30 June 2017
· Well capitalised, with cash balances of $34.3 million (£26.4 million) as at 30 June 2017
· Debt free