Parkmead Group losses narrow despite low oil prices

18th Nov 2016 12:33

(ShareCast News) - UK and Netherlands-focused oil and gas group Parkmead posted its preliminary results for the year to 30 June on Friday, with revenue from continuing operations almost halving to £10.4m from £18.6m.The AIM-traded company managed to offset that with a significantly reduced cost of sales of $15.1m, down from £39.4m, making for a gross loss of £4.6m, narrowing from £33.7m.After expenses, the firm's operating loss was £5.8m compared to £32.7m a year ago.Parkmead's reported loss before tax was £6.4m, also down on last year, when it was £30.8m.Basic and diluted losses per share totalled 6.76p, compared to 35.22p."I am pleased to report an excellent year of progress for Parkmead, despite the challenges of the low oil price environment," said executive chairman Tom Cross."Parkmead discovered and brought onstream a new gas field at Diever West, in the Netherlands, within just 14 months."This field is delivering profitable gas production and important additional cash flow to the group."Cross said Parkmead is increasing its gas production in the Netherlands through a low-cost, onshore work programme, which acts as a natural hedge to low global oil prices."The group's reserves and resources have significantly increased in 2016 through two licence acquisitions."Parkmead has strengthened its position around the important PDL oil hub in the UK North Sea."Cross explained that the company's new licence awards in the 28th Round were an outstanding result for Parkmead, with 10 new offshore oil and gas blocks awarded to the group."We are delighted with the new award in the West of Shetland region targeting two prospects, Sanda North and Sanda South."West of Shetland is an area we understand well and has the potential to add major value to the company."He said Parkmead is well positioned to take advantage of the ongoing lower oil price environment, and the opportunities that are arising from it."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 licensing and acquisition-led growth strategy, securing opportunities that maximise long-term value for our shareholders."