(Alliance News) - Energy firm Parkmead Group PLC on Friday said it swung to an interim loss as gas prices fell and costs went up.
The stock was trading 1.0% higher at 25.75 pence each on Friday morning in London.
For the six-month period to the end of December, the UK and Netherlands-focused energy firm posted pretax loss of GBP1.4 million, swinging from a profit of GBP3.8 million in the comparative period the year prior. Revenue was down to GBP2.1 million, down 60% year-on-year from GBP5.3 million.
The company said the reduction in revenue came as a result of the fall in gas prices from around EUR25.7 per megawatt hours in October 2018 to EUR8.6 per megawatt hours in February 2020 due to the oversupply of liquefied natural gas into the European market.
Administrative expenses amounted to GBP800,000 during the period. Exploration and evaluation expenses increased to GBP1.5 million from GBP162,000. Finance costs during the period rose to GBP362,000 from GBP269,000.
No dividend was declared for the period.
Looking ahead, Parkmead said it does not believe the Covid-19 outbreak will hurt its production in the Netherlands, adding that it is currently reviewing a number of acquisition opportunities.
"Through a strategic acquisition, we are evaluating a number of renewable energy opportunities. Renewable energy is directly in line with Parkmead's business plan, broadening and enhancing the Group's energy asset base. Parkmead is well positioned for the future. We have excellent UK and Netherlands regional expertise, significant cash resources, and a growing portfolio of high-quality assets," said Executive Chair Tom Cross
By Ife Taiwo; ifetaiwo@alliancenews.com
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Parkmead (PMG)