(Alliance News) - Parkmead Group PLC on Friday posted a swing to loss for financial 2020 but expressed confidence in the future due to its "significant" cash resources and its growing portfolio of assets.
Shares in the Netherlands-focussed gas explorer were trading 5.4% higher at 29.18 pence each on Friday morning in London.
For its financial year that ended June 30, Parkmead posted a pretax loss of GBP792,000, swinging from a profit of GBP4.8 million the year prior. This was as revenue fell 51% to GBP4.1 million from GBP8.3 million.
The reduction in revenue was blamed on a decline in gas prices. These fell to lows not seen in over a decade, Parkmead said, due to the oversupply of liquefied natural gas into the European market and the reduction in demand caused by the Covid-19 pandemic.
More positively, the company noted that gas prices have since rebounded strongly almost tripling by November from June lows.
Looking ahead, Executive Chair Tom Cross said: "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. The group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led, growth strategy to secure opportunities that maximise future value for our shareholders."
No dividend was declared, unchanged from the year prior.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Parkmead (PMG)