Parkmead continues to eye renewables push as low gas prices hit profits

Parkmead, the Aberdeen-based energy firm, is continuing to look at opportunities to diversify into renewables after record low gas prices saw it swing to a full-year loss.

Parkmead's Tom Cross believes the Aberdeen-based energy group is in a strong position to further develop its oil and gas interests and pursue renewable energy opportunities. Picture: contributed.
Parkmead's Tom Cross believes the Aberdeen-based energy group is in a strong position to further develop its oil and gas interests and pursue renewable energy opportunities. Picture: contributed.

The company, headed by industry veteran Tom Cross and which has interests in Scotland and the Netherlands, has previously said it is exploring the potential for a large wind farm project on farmland it bought last year in Aberdeenshire.

Yesterday the company said other opportunities continue to be assessed as it seeks to build a renewables portfolio which could include solar and biomass projects.

It has also started evaluating the 2,300 acres acquired at Pitreadie Farm last September, which is expected to lead to land with low green energy potential to be disposed.

The update came as the firm revealed revenue for the year ended June 30 more than halved to £4.1 million from £8.3m reflecting the slump in gas prices seen during the year due to the oversupply of liquefied natural gas (LNG) into the European market and the unprecedented effect of Covid-19.

Advertisement

Hide Ad

Gas prices have since rebounded strongly but the impact of the fall during the financial year saw Parkmead register a £792,000 pre-tax loss compared to a £4.8m profit the previous year.

Gross production at the group's Netherlands assets was equivalent to some 6,608 barrels of oil a day.

In the UK it said highlights included progress on plans for the development of the Platypus gas project in the UK Southern North Sea.

Cross, who is Parkmead's executive chairman, said it had been an important year of progress despite revenues being impacted by the low gas price environment.

Advertisement

Hide Ad

“Parkmead has delivered growth in its asset base whilst retaining financial strength. This creates a strong foundation from which to build and we remain robust in the context of broader global uncertainty brought about by the Covid-19 pandemic,” he said.

He said the company was “well positioned” for the future.

“We have excellent UK and Netherlands regional expertise, significant cash resources, and a growing portfolio of high-quality assets.”

Parkmead consists of four business areas: Netherlands gas, UK oil and gas, performance benchmarking and economics, and future opportunities.

Advertisement

Hide Ad

A message from the Editor:Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions

 0 comments

Want to join the conversation? Please or to comment on this article.