Parkmead Group PLC’s (LON:PMG) shares gushed higher as the North Sea and Netherlands-focused oil and gas group posted a first profit in five years.
Revenue rose by 18% to £8.3mln in the year to June the AIM-listed company said in its preliminary results on Friday.
READ: Parkmead posts 70% jump in full-year revenue, gross profit more than trebles
This led Parkmead to turn a profit for only the second time in its history, making £2.4mln in the period, compared to last year’s loss of £7.1mln.
Parkmead's executive chairman, Tom Cross, called it an “outstanding achievement”.
The gas portfolio in the Netherlands has allowed the group to stay cashflow positive, with production at the Diever West gas field rising 13% to average 44.6mln standard cubic feet per day, said the company.
Although currently gas-focused, Parkmeasa has started to move into renewables and is looking for more deals following the recent acquisition of Pitreadie Farm after the reporting period, which owns farmland in Scotland with potential to house “a large wind farm, solar farm projects and a biomass production facility”.
The “increasing balance” leaves the company with four arms to its the business, which now spans Netherlands gas, UK oil and gas, benchmarking, and renewable energy.
Shares were up 9% at 42.5p in early trading on Friday.