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(Sharecast News) - Parkmead reported a first-half net loss of 1.2m for the six months ended 31 December on Friday, compared with a 0.7m profit a year earlier, as lower production volumes and one-off restructuring costs weighed on performance.
The AIM-traded firm said revenue fell to 2.1m from 3.4m, reflecting a reduction in net production to 181 barrels of oil equivalent per day, from 269 daily equivalent barrels following the benefit of the LDS-01 well in the prior period.
Cash flow from operations moved to a net outflow of 0.1m, down from a 2m inflow a year earlier.
The group said Dutch gas prices remained stable year-on-year, adding that it continued to keep Dutch operating costs tightly controlled at 18.6 per barrel of oil equivalent.
Operational performance improved at the Kempstone Hill wind farm, where uptime increased to 99% following turbine maintenance in the prior period.
Cash balances stood at 6.8m at the end of December.
During the period, Parkmead signed a deal to sell its UK offshore subsidiary, Parkmead E&P, to Serica Energy for 14m in firm cash consideration, with up to 120m in contingent payments possible, subject to future developments.
Completion was expected in the second quarter of 2025.
The company had retained its Dutch gas and Scottish wind assets, which were continuing to generate cash.
In renewables, Parkmead launched public consultations for the proposed Glenskinnan Renewable Energy Park, a 98 MW integrated project comprising wind, solar and battery storage, developed in partnership with Galileo Empower.
A section 36 planning application was expected later in 2025.
In the Netherlands, average gross gas production was 12.7 million standard cubic feet per day, equivalent to around 2,194 barrels of oil equivalent per day.
The joint venture completed a major subsurface scoping exercise in 2024, and was progressing toward the potential sanction of up to four wells this year.
Parkmead also agreed to the unitisation of the VDW-A prospect on the Drenthe VI concession.
The firm said it remained focused on value-accretive growth opportunities, including further acquisitions in cash-generating renewables and international exploration and production.
"I am pleased to report on an important period for Parkmead - the company has made excellent progress towards finalising the sale of Parkmead E&P," said executive chairman Tom Cross.
"Parkmead and Serica are on schedule to achieve completion before mid-year, unlocking 14m in firm cash for Parkmead.
"This places the group in a strong position to pursue value adding acquisitions and make further investments in our existing gas and renewable energy projects."
Cross said the launch of the Glenskinnan Renewable Energy Park consultation was the culmination of several years of work for Parkmead.
"We are excited by the potential value that can be created for shareholders as we progress the project with Galileo."
At 1337 GMT, shares in the Parkmead Group were up 9.81% at 14.55p.
Reporting by Josh White for Sharecast.com.