Parkmead has welcomed the removal of the UK’s effective ban on new wind projects which it said will open up a range of new renewable opportunities as it progresses with discussions to sell its portfolio of UK oil and gas assets.
In its results for the year to the end of June, the independent energy group reported that its Kempstone Hill wind farm in Aberdeenshire generated 2,570MWh of electricity during the year. Parkmead acquired Kempstone in a £4.3 million deal in February 2022.
Executive chairman Tom Cross said the company will continue to focus on growing this part of its business as it seeks to exit its UK oil and gas operations.
Read more:
"As set out at the time of the interims, Parkmead has a valuable long-term asset in its UK offshore oil licences and its UK ring fence tax loss pool," Mr Cross told investors. "The company is in ongoing discussions as it seeks to deliver shareholder value from this asset."
Parkmead reported a post-tax profit of £4.9m for the 12 months to the end of June versus last year’s reported £42.30 million loss of £42.3m as it boosted production levels from key assets while enjoying a substantial reduction in tax liabilities.
Revenue for the year amounted to £5.7m, down from £14.8m previously when average realised gas prices were significantly higher. The group’s net assets grew by a third to £19.6m, and cash reserves stood at £9.5m.
Read more:
Production from the company’s Dutch assets grew to 3,300 barrels of oil equivalent per day (boepd), up from 3,000 in 2023. This increase was driven by the successful development of the LDS-01 well and the steady performance of the Diever-02 facility following its return to production in February.
"We have delivered another year of strong operational results, which has led to a healthy profit for the group and earnings of over 4p per share," Mr Cross said.
"Parkmead continues to benefit from its balanced portfolio, and in particular its exposure to the UK renewables market which the new UK government sees as a key area for growth. We welcomed the removal of the de facto ban on onshore wind energy developments across England which may unlock a range of investment opportunities."
Shares in Parkmead closed yesterday's trading 2p higher at 15.25p.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here