Parkmead on hunt for deals after return to full-year profit

Parkmead, the Scottish energy firm headed by oil industry veteran Tom Cross, is actively looking at new opportunities to grow the business after hailing a return to the black fuelled by a strong performance from its Dutch gas fields.

The company said it was making good progress on plans for the development of the Platypus gas project. Picture: Paul Bock

The Aberdeen-based company also said it was pressing ahead with plans to diversity into the renewable energy sector following a deal earlier this year to buy a significant parcel of farmland in the area.

The group, which has interests in Scotland and the Netherlands, saw revenues increase by 18 per cent to £8.3 million in its latest financial year to 30 June and swung to an operating profit of £5.1m from a £5.3m loss in 2018.

The figures were accompanied by news of a series of changes to its top team including Tim Coxe, who has previously worked for the firm as a contractor, joining in a new role of managing director, North Sea, to focus on developments including the Platypus gas area.

Parkmead is headed by oil industry veteran Tom Cross. Picture: Contributed

The company said it was making good progress on plans for the development of the Platypus gas project which is expected to produce 47 million cubic feet of gas a day at peak production with a field life of approximately 20 years.

Earlier this year the firm also announced a “strategic move” into renewable energy through the acquisition of Pitreadie Farm which owns land in Aberdeenshire.

Biomass

Parkmead said studies are now being conducted on the potential for a wind farm project, solar farm and a biomass production facility on the land.

In the Netherlands, the firm said production at the Diever West gas field was up 13 per cent during the year.

Cash at the year end increased to £30.7m from £23.8m, helped by the sale of its stake in fellow Aberdeen-firm Faroe.

Cross, executive chairman at the firm which has completed eight acquisitions in its history, said it was well positioned for further deals and is “looking carefully” at a number of new opportunities.

He said the increase in revenue and major growth in cash flow and operating profit had been an “outstanding achievement” which creates a strong foundation.

“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,” he said.

“The group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led, growth strategy securing opportunities that maximise long-term value.”

Other appointments made include Donald Wilson as financial controller and Kevin Mitchell who has been appointed as managing director of Parkmead’s economic consulting business Aupec.