Shares in oil and gas company Parkmead (LSE: PMG) surged 24% on Friday after it said it expected “long-term low-risk core revenue” from its gas and renewable energy assets, despite reporting a £35.3M loss for the 2023 financial year.
The company swung to a substantial loss from a £4M profit last year as exploration costs ballooned. However, Parkmead said it was focused on “maximising returns” from opportunities across the UK and Netherlands.
Executive Chair Tom Cross said the company’s tax position put it in an “exceptionally well-placed” situation regarding potential acquisitions. He added that Parkmead was looking at “simpler and lower cost” offshore UK projects compared to its Greater Perth Area venture.
In the Netherlands, seismic work has identified new exploration leads and prospects. Meanwhile, Parkmead’s UK renewable energy portfolio was benefiting from a full year of generation from its Kempstone Hill wind farm.
Shares in the AIM listed firm have plunged 68% year-to-date and 71% over the past year. But Friday’s update boosted confidence that new gas and renewable energy assets could deliver steadier long-term revenues.