Shares in Parkmead Group (AIM:PMG) rose 14.5% to 15p this morning after the energy group reported a sharp rise in annual profit and highlighted the value unlocked from selling its North Sea oil licences.
Parkmead posted profit after tax of £7.35 million for the year to 30 June, up 49% on last year, with earnings per share also rising 49% to 6.72p. Net assets increased to £27 million, equivalent to 25p a share, while cash reserves climbed to £13.2 million.
The standout driver was April’s sale of the company’s offshore UK oil licences. Parkmead said the transaction created roughly £30 million of near-term value, made up of £14 million in firm cash and about £16 million of costs covered for its share of a commitment well at Skerryvore.
The group has received £7 million so far, with another £7 million due over 15 months. It could receive as much as £120 million more if future field development plans are approved.
Alongside the sale, Parkmead is expanding its renewables portfolio. Its Glenskinnan project, being developed with Galileo Empower, is planned as a combined wind, solar and battery site capable of delivering up to 98MW of wind power.
Production at its Kempstone Hill wind farm increased 6% during the year.
Parkmead also retains all its Netherlands gas fields, which continue to generate cash. Drilling plans are advancing for 2026.
Tom Cross, executive chairman, said the results reflected “strong operational performance” and the benefit of the North Sea divestment.