REG - Parkmead Group (The) - Interim Results for six-months ended 31 Dec 2022
31/03/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230331:nRSe8386Ua&default-theme=true
RNS Number : 8386U Parkmead Group (The) PLC 31 March 2023
31 March 2023
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Interim Results for the six-month period ended 31 December 2022
Parkmead, the independent energy group focused on growth through gas, oil and
renewable energy projects, is pleased to report its interim results for the
six-month period ended 31 December 2022.
HIGHLIGHTS
Strong operating cashflow, delivered through low-cost onshore gas production
· Revenue more than doubled to £11.1 million for the period (2021:
£4.6 million) as the Company benefited from robust production through a
sustained period of high gas prices
· Net cash generated from operating activities rose strongly, by
over 400% to £8.6 million (2021: £1.7 million) equivalent to 8.0 pence per
share
· Gross profit increased to £9.8 million (2021: £3.8 million)
generating a gross margin of 89%
· Strong gross profits were nevertheless offset by a £4.8 million
tax charge, principally arising from Netherlands operations, and a £4.0
million windfall tax charge expensed during the period but due for payment in
May 2024
· Average realised gas price throughout the period of €153.04/MWh
· Average field operating cost in the period of just US$8.6 per
barrel of oil equivalent, generating strong operating cash flows
· Strong balance sheet with cash balances of £19.2 million (2021:
£24.1 million) as at 31 December 2022, equal to 17.6 pence per share
· An impairment of £12.7 million was recorded during the period
relating to licence P1293, following the decommissioning of the Athena field
· Net loss before impairment charge of £1.2 million (2021: £0.4
million)
· Total assets of £70.3 million at 31 December 2022 (2021: £80.5
million)
Successful exploration drilling campaign and robust production in the
Netherlands
· LDS-01 successfully encountered new commercial gas columns in the
primary target horizons
· Tie-in of LDS-01 is complete with first gas expected imminently
· Both LDS-01 and LDS-02 were drilled safely, on time and under
budget
· LDS-02 did not encounter commercial volumes of hydrocarbons in
the targeted intervals however the well has been suspended and is being
assessed for reuse as a side-track into nearby targets
· Average gross production for the period across the Group's
Netherlands assets was 18.0 MMscfd, approximately 3,205 barrels of oil
equivalent per day ("boepd")
· Papekop field development has made significant progress in recent
months, as the joint venture aims to accelerate the project
Well planning activities underway on the exciting Skerryvore exploration
targets
· Well and site survey planning work has commenced with a rig
tendering process due to start in Q2 2023
· An extensive tender process was completed in January 2023 for the
well management services and the contract was awarded to Exceed Energy, an
industry-leader in well management and performance solutions
· Parkmead increased its equity in Skerryvore to 50%, and
progressed the project to Phase C as Licence Exploration Operator with strong
industry partners
· Skerryvore consists of stacked light oil prospects at Mey and Tor
intervals
UKCS 33(rd) Offshore Oil & Gas Licensing Round
· Parkmead, as one of the leading UK independents, remains
committed to the UKCS oil and gas industry and made selective applications in
the UKCS 33(rd) Offshore Oil and Gas Licensing Round, the outcome of which
will be known later in 2023
Record revenue delivered from Kempstone Hill Wind Farm
· Revenue of £343,000 in the six months to 31 December 2022
· 245% increase in average exported power price realised
· Over 95% uptime achieved during the period
· Greencat Renewables have been appointed to review methods of
increasing electricity generation and utilising spare generation capacity at
the Kempstone Hill
· Kempstone Hill Wind Farm provides power for up to 1,000 homes and
has an attractive inflation-linked, Feed-in Tariff through until 2036
· Electricity is sold through a power purchase agreement which
provides valuable upside through strong wholesale electricity prices
Multiple new renewable energy projects under consideration
· Environmental studies are ongoing at Pitreadie which are expected
to form part of a major wind farm planning application
· Parkmead is also conducting a scoping study on a new site in
Scotland which has the potential for a solar farm
Substantial oil and gas reserves
· 2P reserves of 45.5 MMBoe as at 1 March 2023 (45.6 MMBoe as at 1
March 2022)
Well positioned for further acquisitions and opportunities
· Parkmead is actively evaluating further acquisition opportunities
in each of its areas of activity - renewables, gas and oil
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report that strong operating performance has been achieved by
Parkmead in the six-month period to 31 December 2022.
In line with our strategy, Parkmead now benefits from stable revenue generated
by clean, renewable sources, onshore Scotland. This is in addition to our
high-quality onshore gas assets across the Netherlands.
The Group has achieved an increase in revenue of over 140% on the prior year
period, and outstanding growth in net cash generated from operating activities
of over 400%.
Parkmead's successful drilling campaign in the Netherlands has resulted in the
LDS-01 well encountering new commercial gas volumes. This well has been
swiftly tied into production infrastructure, with first gas due imminently.
We continue to maintain strict financial discipline across all our existing
energy projects. This is in addition to the ongoing evaluation of acquisition
opportunities that will complement the Group and maximise shareholder value."
Enquiries:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Finance Director)
Henry Steward (Group Commercial Manager)
finnCap Ltd +44 (0) 20 7220 0500
Marc Milmo / Seamus Fricker - Corporate Finance
Andrew Burdis / Barney Hayward - ECM
Financial Performance
During the six-month period to 31 December 2022, the Group increased its
revenue by over 140% to £11.1 million (2021: £4.6 million) as Dutch TTF gas
prices continued to remain above historical averages. The Group's high-quality
onshore asset base in the Netherlands, as well as the addition of renewable
wind energy production in Scotland, has provided a strong underlying operating
profit margin.
Net cash generated from operating activities rose strongly by over 400% to
£8.6 million (2021: £1.7 million). Parkmead delivered an operating profit
before non-cash impairments of £7.6 million for the half year (2021: £1.8
million), or 7.0p on a per share basis. An impairment of £12.7 million was
recorded during the period relating to licence P1293, following the
decommissioning of the Athena field. Administrative expenses amounted to £2.0
million (2021: £1.5 million) which included a non-cash expense of £0.8
million in respect of a revaluation of share appreciation rights. The Group
realised a loss before tax of £5.2 million (2021: £1.3 million profit before
tax). Taxation for the period, excluding windfall tax, was £4.8 million
(2021: £1.7 million) due to high average gas prices achieved and the low-cost
nature of our onshore assets. The loss after taxation, excluding the Athena
impairment charge, was £1.2 million (2021: £0.4 million).
Due to a windfall tax imposed by the Dutch Government, levied retrospectively
on Parkmead's 2022 gas production, the Group suffered a non-current tax
liability of £4.0m which relates to the whole of the calendar year 2022. This
tax is not payable until May 2024. Whilst frustrating, we understand that this
windfall tax will aid the Netherlands population in accessing lower-cost,
low-carbon energy - an ultimate goal for Parkmead, and why we aim to increase
our domestic natural gas output in the region.
Parkmead continues to maintain a strong balance sheet with total assets at 31
December 2022 of £70.3 million (2021: £80.5 million). There was a £12.7
million cash spend on decommissioning activities in the six month period to 31
December 2022. After this spend, cash and cash equivalents at 31 December 2022
were £19.2 million (2021: £24.1 million), equivalent to 17.6 pence per
share. Short term decommissioning provisions were £4.6 million (2021: £13.5
million). Interest bearing loans receivable were £2.9 million (2021: £2.9
million). Debt was strictly maintained at the low level of just £0.9 million
(2021: £0.5 million). This debt was inherited as a result of the acquisition
of Kempstone Hill Wind Energy Limited.
Review of Activities
Onshore Netherlands
Our Netherlands production remains some of the most efficient and profitable
in Europe, on a per-barrel basis. Production across the fields continues to
decline at slower rates than expected. Across the six months to 31 December
2022 gross production averaged 18.0 MMscfd, approximately 3,205 barrels of oil
equivalent per day ("boepd").
In December, Parkmead announced the spudding of the 'LDS' two-well drilling
campaign in the Netherlands. The LDS wells were drilled from the existing
Diever well site, reducing cost and expediting the tie-in process in a success
case. We are pleased to report that both wells were drilled safely, on time
and under budget. LDS-01 successfully encountered commercial gas columns in
the primary target horizons. The well was completed and has been tied in, with
first gas expected imminently. LDS-02 was unfortunately unsuccessful in
encountering commercial volumes of gas however it has greatly helped the joint
venture's understanding of the regional geology for follow-on prospects.
LDS-02 has therefore been suspended and is currently being assessed for
potential re-entry and sidetrack to other nearby prospects.
The operating cost of the combined fields is very low at just $8.6 per barrel
of oil equivalent. These high-quality assets underpin our Group's outstanding
gross profit margin of 89% and allows for the company to reinvest in further
opportunities. Onshore gas production is considered to play an important role
in a just transition, and we continue to progress further projects on our
licences, in line with government strategy.
Furthermore, excellent progress continues to be made on the Papekop
development. The permitting process is underway, with commercial discussions
progressing around transportation and offtake. A potential development of the
Papekop field would target 35.6 Bcf of gross gas reserves, with potential for
upside through oil production.
UK Oil and Gas
Greater Perth Area ("GPA")
During the period, Parkmead has completed phase one of a Net Zero feasibility
study with the Scott Area partners, and leading engineering consultancy,
Worley. We are pleased to report that the tie back of the GPA through Scott
provides several viable options for reinjection of the associated Perth gas,
post-processing on Scott. This represents a significant step forward that
aligns with the NSTA strategy for reduced flaring and Net Zero developments.
The Scott platform lies just 10km southeast of the GPA project and a tie-back
would yield a number of mutually beneficial advantages for both the Scott
partnership and Parkmead. Significant efforts continue into aligning suitable
partners for the possible development of GPA and the potential life extension
of neighbouring infrastructure through which GPA could be developed.
The GPA forms part of a portfolio of opportunities. Transportation studies for
our base case development concept were previously completed. These have
confirmed there are no technical hurdles associated with the transportation
and processing of fluids from the Perth producing wells all the way through
the offshore infrastructure to the onshore facilities.
The GPA project has the potential to deliver 100 million barrels recoverable
on a P50 basis. Projects like GPA play an important role in underpinning the
security of energy supply that the UK requires in its transition to net zero.
As a fuel that is primarily used for transportation, manufacturing and
petrochemicals, oil will continue to feature as a vital commodity in the UK
over the coming years. Therefore, it is very important that the UK continues
to develop such projects in order to reduce reliance on less-regulated, more
carbon-intensive imports. Parkmead believes that production of hydrocarbons
from GPA can be done in a sustainable fashion in alignment with the UK
government's most recent targets on carbon emissions.
Skerryvore
During the period, Parkmead increased its stake in the high-impact Skerryvore
project from 30% to 50% and gained regulatory approval to progress into the
next phase of the licence. Parkmead will continue as operator in this current
phase, which is testament to the efforts and capability of the project team.
Skerryvore will be Parkmead's first operated exploration well. Parkmead's
joint venture partners on the licence are Serica Energy (UK) Limited (20%) and
CalEnergy (Gas) Limited (30%).
The Company's detailed technical work programme has confirmed the considerable
multi-interval potential of Skerryvore. The planned well will target the main
stacked exploration prospects, at Mey and Chalk intervals, which studies
indicate could contain significant volumes of light oil. The licence also
contains additional prospectivity at the Ekofisk and Jurassic levels. A
successful discovery will result in a tie back to nearby infrastructure in
line with the NSTA's MER and Hub Strategy for new developments.
The area around Skerryvore is currently seeing important activity on several
fronts, with Harbour Energy now in the execute phase of the adjacent Talbot
development project, and NEO Energy proceeding with the redevelopment of
Affleck. Activity is also ongoing on the Isabella discovery by TotalEnergies.
Further development activity is also taking place in the Norwegian sector in
close proximity to Skerryvore at Tommeliten A, a licence operated by
ConocoPhillips.
Fynn
Parkmead (50% and operator) continues to progress the technical work on the
two undeveloped discoveries at Fynn Beauly and Fynn Andrew ("Fynn") situated
in the Central North Sea, plus additional prospectivity in the Piper
formation.
Fynn Beauly is a very large heavy oil discovery with an estimated in-place
volume of up to 1,343 million barrels across several blocks. Fynn Andrew, is
wholly contained on the offered blocks and holds 49.5 million barrels of
oil-in-place on a P50 basis. Parkmead's partner on the offered blocks is
Orcadian Energy (50% working interest).
UKCS 33(rd) Offshore Oil and Gas Licensing Round
Despite industry concerns over the imposition of the Energy Profits Levy,
Parkmead remains committed to the UKCS oil and gas industry. Parkmead has
therefore made selective applications in the UKCS 33(rd) Offshore Oil and Gas
Licensing Round, the outcome of which will be known later in 2023.
UK Renewable Energy Portfolio
The acquisition of producing renewable energy assets in February 2022 was a
complementary addition to our organic renewable energy projects at Pitreadie.
Since the integration of Kempstone Hill, we have achieved outstanding uptime
of 98%, as well as benefiting from a large increase in wholesale electricity
export prices. This has resulted in record revenue from the wind farm of
£343,000 in the six months to 31 December 2022.
Kempstone Hill is a 1.5MW onshore wind farm in Scotland which benefits from an
attractive inflation-linked, Feed-in Tariff through to 2036. Electricity is
sold through a power purchase agreement which provides exposure to strong
wholesale electricity prices. We anticipate that a tendering process for a new
PPA, effective Q3 2023, will provide another year of strong revenues from the
asset.
At Pitreadie, commercial discussions continue to progress with potential joint
venture partners. Following positive results of initial studies, further
environmental surveys and planning work are ongoing in support of a major wind
farm planning application.
Parkmead will continue to add to its renewable energy portfolio through
further acquisitions of producing assets as well as progressing existing
organic projects.
Decommissioning
As mentioned in our FY2022 results, Parkmead decided to progress legacy
decommissioning activities on the UKCS in order to capitalise on lower supply
chain costs, agreed before the significant inflation in the offshore market.
The Company is pleased to report wells across P218 and P1293 have successfully
been decommissioned safely, on time and on budget. P&A activities across
the P1242 licence are ongoing and a number of techniques have been
successfully implemented, reducing time and cost across this abandonment
programme. The completion of this work on the UKCS will leave Parkmead with no
major abandonment liabilities going forward.
Outlook
Parkmead has delivered significant results at operating level from its
diversified energy portfolio in the six-month period to 31 December 2022, and
through the three months post period end. There are obvious concerns in the
upstream industry about the high and increasing levels of taxation on primary
energy production across Europe, and how that may impact future investment.
Despite this higher taxation, Parkmead has the benefit of having built
multiple opportunities to create additional value, such as those across the
Netherlands, as well as the progression of our Skerryvore project in the UK
Central North Sea. This is in addition to actively reviewing acquisition
opportunities internationally, which would complement our existing portfolio
of assets. The Board is confident that the Parkmead team is well positioned to
drive the business forward and to build upon the achievements already made to
date.
Tom Cross
Executive Chairman
31 March 2023
This announcement contains inside information for the purposes of Article 7 of
Regulation 596/2014. Upon the publication of this announcement, the
information contained herein is now considered to be in the public domain.
Notes:
1. Tim Coxe, Parkmead Group's Managing Director, North Sea, who holds a
First-Class Master's Degree in Engineering and over 30 years of experience in
the oil and gas industry, has overseen the review and approval of the
technical information contained in this announcement. Tim is accountable for
the company's HSE, Subsurface, Drilling, Production Operations and Development
Project functions. Reserves and contingent resource estimates have been
produced by Parkmead's subsurface team and are stated as of 1 March 2023.
Parkmead's evaluation of reserves and resources was prepared in accordance
with the 2007 Petroleum Resources Management System prepared by the Oil and
Gas Reserves Committee of the Society of Petroleum Engineers and reviewed and
jointly sponsored by the World Petroleum Council, the American Association of
Petroleum Geologists and the Society of Petroleum Evaluation Engineers.
A glossary of key terms can be found at
https://www.nstauthority.co.uk/site-tools/glossary-of-terms/
Condensed Consolidated statement of profit and loss and other comprehensive
income
for the six months ended 31 December 2022
Six months to 31 December 2022 Six months to 31 December 2021 Twelve months to 30 June 2022
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Continuous operations
Revenue 11,124 4,633 12,129
Cost of sales (1,331) (837) (1,370)
Gross profit 9,793 3,796 10,759
Exploration and evaluation expenses 2 (153) (465) (1,116)
Impairment of goodwill - - (2,174)
Impairment of property, plant and equipment: development & production (12,733) - -
Gain / (loss) on sale of assets 10 - (31)
Administrative expenses 3 (2,049) (1,457) (2,231)
Operating profit (5,132) 1,874 5,207
Finance income 81 37 73
Finance costs (113) (625) (1,317)
(Loss) / profit before taxation (5,164) 1,286 3,963
Taxation (4,770) (1,697) (4,777)
Windfall taxation (4,044) - -
Loss for the period attributable to the equity holders of the Parent (13,978) (411) (814)
Loss Per share (pence)
Basic 5 (12.79) (0.38) (0.75)
Diluted (12.79) (0.38) (0.75)
Condensed Consolidated statement of financial position
as at 31 December 2022
31 December 2022 31 December 2021 30 June 2022
Notes (unaudited) (unaudited) (audited)
£'000 £'000 £'000
Non-current assets
Property, plant and equipment: development & production 4,370 14,613 15,843
Property, plant and equipment: other 6,200 4,391 6,636
Goodwill 1,084 2,174 1,084
Exploration and evaluation assets 34,369 30,685 34,346
Interest bearing loans 4 - 2,900 2,900
Deferred tax assets 187 - 187
Total non-current assets 46,210 54,763 60,996
Current assets
Trade and other receivables 1,973 1,597 2,018
Interest bearing loans 4 2,937 - -
Inventory 17 46 42
Cash and cash equivalents 19,179 24,128 23,263
Total current assets 24,106 25,771 25,323
Total assets 70,316 80,534 86,319
Current liabilities
Trade and other payables (10,666) (2,975) (3,545)
Decommissioning provisions (4,562) (13,498) (19,228)
Current tax liabilities (2,848) (1,219) (1,432)
Total current liabilities (18,076) (17,692) (24,205)
Non-current liabilities
Other liabilities (1,242) (903) (1,181)
Loan (905) (500) (948)
Deferred tax liabilities (1,925) (1,339) (1,925)
Windfall taxes (4,044) - -
Decommissioning provisions (1,108) (2,739) (1,066)
Total non-current liabilities (9,224) (5,481) (5,120)
Total liabilities (27,300) (23,173) (29,325)
Net assets 43,016 57,361 56,994
Equity attributable to equity holders
Called up share capital 19,688 19,688 19,688
Share premium 88,017 88,017 88,017
Merger reserve 3,376 3,376 3,376
Retained deficit (68,065) (53,720) (54,087)
Total equity 43,016 57,361 56,994
Condensed Consolidated statement of changes in equity
for the six months ended 31 December 2022
Share capital Share premium Merger reserve Retained deficit Total
£'000 £'000 £'000 £'000 £'000
At 30 June 2021 19,688 88,017 3,376 (53,360) 57,721
Loss for the period - - - (411) (411)
Total comprehensive loss for the year - - - (411) (411)
Share-based payments - - - 51 51
At 31 December 2021 19,688 88,017 3,376 (53,720) 57,361
Loss for the period - - - (403) (403)
Total comprehensive loss for the year - - - (403) (403)
Share-based payments - - - 36 36
At 30 June 2022 19,688 88,017 3,376 (54,087) 56,994
Loss for the period - - - (13,978) (13,978)
Total comprehensive loss for the year - - - (13,978) (13,978)
At 31 December 2022 19,688 88,017 3,376 (68,065) 43,016
Condensed Consolidated statement of cashflows
for the six months ended 31 December 2022
Six months to 31 December 2022 Six months to 31 December 2021 Twelve months to 30 June 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cashflows from operating activities
Cashflows from operations 11,779 2,474 8,038
Taxation paid (3,203) (770) (3,508)
Net cash generated from operating activities 8,576 1,704 4,530
Cash flow from investing activities
Interest received 81 37 73
Acquisition of exploration and evaluation assets (253) (360) (548)
Proceeds from sale of property, plant and equipment 163 - 874
Acquisition of property, plant and equipment: development and production (275) (46) (123)
Acquisition of property, plant and equipment: other - (1) (3,114)
Decommissioning expenditure (12,754) (233) (1,667)
Net cash on acquisition of Kempstone Hill - - 360
Net cash used in investing activities (13,038) (603) (4,145)
Cash flow from financing activities
Lease payments (168) (162) (375)
Interest paid (31) (24) (45)
Repayment of loans and borrowings (43) - (542)
Net cash used in financing activities (242) (186) (962)
Net increase / (decrease) in cash and cash equivalents (4,704) 915 (577)
Cash and cash equivalents at beginning of period 23,263 23,378 23,378
Effect of foreign exchange rate differences 620 (165) 462
Cash and cash equivalents at end of period 19,179 24,128 23,263
Notes to the Interim financial statements
1. Accounting policies
General Information
These condensed consolidated interim financial statements of The Parkmead
Group plc and its subsidiaries (the "Group") were approved by the Board of
Directors on 30 March 2023. The Parkmead Group plc is the parent company of
the Group. Its shares are quoted on AIM, part of the London Stock Exchange.
The registered office is located at 20 Farringdon Street, 8th Floor, London,
England, EC4A 4AB.
The condensed consolidated interim financial statements for the period 1 July
2022 to 31 December 2022 are unaudited. In the opinion of the Directors, the
condensed consolidated interim financial statements for the period presents
fairly the financial position, and results from operations and cash flows for
the period in conformity with the generally accepted accounting principles
consistently applied. The condensed consolidated interim financial
statements incorporate unaudited comparative figures for the interim period 1
July 2021 to 31 December 2021 and the audited financial year ended 30 June
2022.
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory accounts for the year ended 30 June 2022 which were prepared
under International Financial Reporting Standards ("IFRS") as adopted for use
in the UK were filed with the Registrar of Companies. The auditors reported on
those accounts and their report was unqualified and did not contain a
statement under either Section 498 (2) or Section 498 (3) of the Companies Act
2006 and did not include references to any matters to which the auditor drew
attention by way of emphasis.
Basis of preparation
The interim financial information in this report has been prepared under the
historical cost convention using accounting policies consistent with
International Financial Reporting Standards (IFRS) as adopted by the UK and
IFRS Interpretations Committee (IFRIC) interpretations. IFRS is subject to
amendment and interpretation by the International Accounting Standards Board
(IASB) and IFRIC and there is an ongoing process of review and endorsement by
the UK. The financial information has been prepared on the basis of UK-adopted
international accounting standards that the Directors expect to be adopted and
applicable as at 30 June 2022.
The Group has chosen not to adopt IAS 34 - Interim Financial Statements, in
preparing these financial statements.
The accounting policies applied in this report are the same as those applied
in the consolidated financial statements for the year ended 30 June 2022.
Going concern
The Directors have made an assessment of the Group's ability to continue as a
going concern. As at 31 December 2022 the Group had £43.0 million of net
assets of which £19.2 million is held in cash, of which £4.7 million is held
as restricted cash.
The Group's production in the Netherlands has been uninterrupted by COVID-19
and the Group and Company employees have utilised technology to work remotely
where required. The Group's current cash reserves are the principal source of
funding and are expected to more than exceed its estimated liabilities. Based
on these circumstances, the Directors have considered it appropriate to adopt
the going concern basis of accounting in preparing these interim results.
2. Exploration and evaluation expenses
Exploration and evaluation expenses includes impairment charges of £18,000
recorded in respect of exploration licences relinquished in the period (Six
months to 31 December 2021: £318,000, Twelve months to 30 June 2022:
£860,000).
3. Administrative expenses
Administrative expenses include an expense in respect of a non-cash
revaluation of share appreciation rights (SARs) totalling £800,000 (Six
months to 31 December 2021: £238,000 charge, 12 months to 30 June 2022:
£418,000 charge). The SARs may be settled by cash or shares and are therefore
revalued with the movement in share price.
Administrative expenses also includes a non-cash share based payment charge of
£Nil due to options which have been granted, lapsed or forfeited (Six months
to 31 December 2021: £51,000, 12 months to 30 June 2022: £87,000 credit).
Administrative expenses also include a foreign exchange gain of £620,000 (Six
months to 31 December 2021: £165,000 expense, 12 months to 30 June 2022:
£462,000 gain).
4. Interest bearing loans
On 27 July 2017, The Parkmead Group plc entered into a credit facility with
Energy Management Associates Limited, whereby Parkmead agreed to lend up to
£2,900,000 to Energy Management Associates Limited.
The loan has a period of two years, with a fixed interest rate of 2.5 per
cent. Interest charged by Parkmead during the period amounted to £37,000 (Six
months to 31 December 2021: £37,000, Twelve months to 30 June 2022:
£73,000).
On 26 July 2021, The Parkmead Group plc entered into a 24-month extension of
the loan.
5. Loss per share
Loss per share attributable to equity holders of the Company arise as follows:
Six months to 31 December 2022 Six months to 31 December 2021 Twelve months to 30 June 2022
(unaudited) (unaudited) (audited)
Loss per 1.5p ordinary share (pence)
Basic (12.79) (0.38) (0.75)
Diluted (12,79) (0.38) (0.75)
The calculations were based on the following information:
Six months to 31 December 2022 Six months to 31 December 2021 Twelve months to 30 June 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Loss attributable to ordinary shareholders (13,978) (411) (814)
Weighted average number of shares in issue
Basic weighted average number of shares 109,266,931 109,266,931 109,266,931
Dilutive potential ordinary shares
Share options 10,778,154 10,778,154 10,778,154
Basic loss per share is calculated by dividing the loss for the period by the
weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated by dividing the loss for the period
by the weighted average number of ordinary shares outstanding during the
period plus the weighted average number of ordinary shares that would be
issued on conversion of all the dilutive potential ordinary shares into
ordinary shares.
Diluted loss per share
Loss per share requires presentation of diluted loss per share when a company
could be called upon to issue shares that would decrease net profit or net
loss per share. When the Group makes a loss the outstanding share options are
anti-dilutive and so are not included in dilutive potential ordinary shares.
6. Notes to the statement of cashflows
Reconciliation of operating (loss) / profit to net cash flow from operations
Six months to 31 December 2022 Six months to 31 December 2021 Twelve months to 30 June 2022
£'000 £'000 £'000
Operating (loss) / profit (5,132) 1,874 5,207
Depreciation 326 341 726
Amortisation and exploration write-off 18 318 860
(Gain) / loss on sale of property, plant and equipment (10) - 31
Provision for share based payments - 51 87
Currency translation adjustments (620) 165 (462)
Impairment of Goodwill - - 2,174
Impairment of property, plant and equipment: development & production 12,733 - -
Decreases / (increase) in receivables 45 (359) (667)
Decrease in stock 25 20 24
Increase in payables 4,394 64 58
Net cash flow from operations 11,779 2,474 8,038
7. Post balance sheet events
In January 2023 Parkmead E&P and joint venture partners completed a
six-well decommissioning campaign across the P1293 licence (former Athena
wells). The final remaining subsea infrastructure will be removed, and
recycled where possible, throughout Q2 2023.
Decommissioning activities on the P1242 licence (former Platypus wells)
commenced in March 2023.
The two-well LDS drilling campaign in the Netherlands was completed safely, on
time and under budget between November 2022 and February 2023. LDS-01 will be
used as a gas-producing well and has already been successfully tied in to
surrounding infrastructure. The LDS-02 well did not encounter a sufficient
hydrocarbon column and has been suspended for potential re-entry.
A former subsidiary, Deo Petroleum Limited, has been restored to the Register
of Companies. This is in relation to ongoing work across the Greater Perth
Area licences.
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR WPUBUWUPWGQURecent news on Parkmead
See all newsREG - Parkmead Group (The) - Interim Results for Six Months Ended 31 Dec 2023
AnnouncementREG - Parkmead Group (The) - Provisional Award of Three New UK Offshore Blocks
AnnouncementREG - Parkmead Group (The) - Update on Netherlands and Renewables Portfolios
AnnouncementREG - Parkmead Group (The) - Result of AGM
AnnouncementREG - Parkmead Group (The) - Preliminary Results Statement 2023
Announcement