28th Mar 2014 12:17
LONDON (Alliance News) - The Parkmead Group PLC said Friday it swung to a maiden pretax profit of GBP3.1 million in the half-year as revenues jumped 395% after production was boosted by a number of acquisitions in the UK.
The UK and Netherlands focused oil and gas group reported a maiden pretax profit of GBP3.1 million, up from a GBP2.8 million loss for the comparable period in 2012, with operating profit rising to GBP3.9 million from a GBP2.7 million loss the previous year, primarily due to oil production revenues from the Athena field, said the firm.
Revenue increased by 395% to GBP9.9 million from GBP2.2 million last year.
In its interim results for the six-months to year to December 31, 2013, Parkmead said its total assets increased 104% to GBP81.5 million from GBP40.0 million last year.
The company, generating profits for the first time, did not disclose dividend information.
During the period, Parkmead said it has seen major growth in production figures and has made "significant progress" with its developments, noting that the acquisition of Lochard Energy Group PLC, provided the firm with a substantial increase in production, revenue and cash flow. Also of note during the period, Parkmead's oil production from the Athena oil field trebled, after acquiring a further 20% interest from EWE VERTRIEB GmbH.
Parkmead said following the completion of the EWE acquisition, Parkmead's net oil and gas production will have grown by over 700%
The company said it made a new gas discovery in the UK Southern North Sea by the Pharos exploration well and was awarded five more oil and gas blocks in the UKCS 27th Licensing Round during the period, resulting in a total award of 30 blocks across the North Sea, West of Scotland and West of Shetlands.
In January, after the reporting period, Parkmead raised about USD66 million, or GBP40 million, through an over-subscribed placing of 15.7 million shares at 255 pence each to fund the firms' growth plans. The firm said it would accelerate drilling at the Skerryvore oil prospects, restore production to previous levels at Athena, look at further merger and acquisition deals, and accelerate its exploration drilling schedule, applying for new areas in the UKCS28th licensing round in the UK.
"Parkmead has also been driving ahead its exploration portfolio, with the successful gas discovery at Pharos and the award of five additional oil and gas blocks under the UK 27th Licensing Round. The discovery at Pharos could add further value to the Platypus gas field, strengthening Parkmead's position in the UK Southern Gas Basin. The award of additional acreage in the UK 27th Round, bringing the total blocks awarded to 30, capped an important year of exploration activity for the Group," said Chief Executive Tom Cross.
"This new financing has put Parkmead in a strong position to deliver additional growth," he added.
In its full-year figures in November, the firm reported a then-widened pretax loss of GBP5.6 million, up on the GBP4.9 million the previous year and at the time said it was in advanced discussions with lenders regarding debt facilities to increase financial firepower to support the business going forward. The firm drew GBP2 million from its shareholder loan facility during the period, following the debt for equity conversion, and said that retained its appetite for acquisitions in order to add shareholder value through its assets.
Shares in Parkmead were trading marginally higher Friday afternoon, up 0.01% at 245.01 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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