London energy firm sees 2020 revenue cut in half as gas prices hit record low

An independent energy group has reported that its revenue for the past year has taken a 50 per cent hit as gas prices reached a record low.

Parkmead, based in London, operates across the UK and Netherlands, and announced today (20 November) that its revenue for 2020 dropped to £4.1m, compared to last year’s £8.3m.

The company’s gross profit also decreased, from £5.7m in 2019 to £1.3m this year.

It said that the drop was largely due to gas prices dropping, falling from approximately €25.7/MWh in October 2018 to lows of around €5.0/MWh in June 2020.

However, as gas prices bounce back, the company has said that it is considering potential options for an onshore wind farm in the future.

Tom Cross, Parkmead’s executive chairman, commented: “I am pleased to report on an important year of progress for Parkmead.

“Despite revenues being impacted by the low gas price environment, Parkmead has delivered growth in its asset base whilst retaining financial strength.

“This creates a strong foundation from which to build and Parkmead remains robust in the context of broader global uncertainty brought about by the Covid-19 pandemic.

“Following our first strategic acquisition in the renewable energy arena, we continue to evaluate further opportunities.

“Renewable energy is directly in line with Parkmead’s business plan, broadening and enhancing the group’s energy asset base. Potential has been identified for a large wind farm project on a part of the group’s onshore acreage.

“Further advances have been made within the Greater Perth Area project. The group is in discussions with a number of leading, international service companies and oil companies in relation to driving forward the GPA project.

“The team at Parkmead continues to work intensively to evaluate and execute further value-adding opportunities which could provide additional upside for the group.

“Parkmead is well positioned for the future. We have excellent UK and Netherlands regional expertise, significant cash resources, and a growing portfolio of high-quality assets.

“The group will continue to build upon the inherent value in its existing interests with a balanced, acquisition-led, growth strategy to secure opportunities that maximise future value for our shareholders.”