Parkmead interim results: cash strengthened to £16.1 million and Glenskinnan gathers pace
Parkmead has posted its half-year numbers to 31 December 2025 and, while production and revenue eased as expected, the balance sheet looks healthy and the renewables strategy is moving up a gear. Post period end, cash and term deposits rose to £16.1 million after the second deferred payment from the UK North Sea sale landed.
Here’s my quick take:
- Glenskinnan Renewable Energy Park advancing with partner Galileo Empower – up to 98 MW wind, 20 MW solar and 30 MW battery storage planned, with more public consultations in 2026 and a Section 36 planning application targeted for 2026.
- Netherlands gas remains the cash engine: 143 boepd (barrels of oil equivalent per day) net in the period; new wells at Drenthe V and VI being matured for late 2026.
- Un-hedged gas exposure gives upside if prices stay firm – TTF averaged €32.14/MWh in the half but has risen by well over 50% post period end.
- Second deferred payment of £3.1 million received in February; another £3.9 million due in February 2027; up to £120 million of contingent consideration possible on Skerryvore and Fynn Beauly (subject to FDP approvals).
- Lean cost base and minimal debt of £0.7 million; net loss narrowed to £0.9 million.
Glenskinnan Renewable Energy Park: why this big onshore project matters
Parkmead’s owned land at Pitreadie sits at the heart of the proposed Glenskinnan Renewable Energy Park in Aberdeenshire. The current concept combines 14 wind turbines (up to 98 MW), a 20 MW solar PV array and up to 30 MW of battery energy storage (BESS). That mix can smooth output and improve grid value – helpful for project revenues and flexibility.
Galileo Empower, a seasoned European renewables developer, is leading development. Parkmead is working with Galileo to finalise commercial terms ahead of submitting a Section 36 application in 2026. Section 36 is the Scottish consent route for power projects over 50 MW – getting that in will be the key de-risking milestone. The scheme ties into the Fetteresso substation just 4.2 miles away, which is practical from a grid-connection standpoint.
Positives here: a credible partner, clear timeline markers (more consultations in 2026 and a consent submission), and policy tailwinds via the UK Government’s Clean Power 2030 Action Plan. The rub, as ever, is planning risk and timing. Until consent is in hand, the project’s value sits in “optionality” rather than cashflow.
Netherlands gas: drilling targets line up for late 2026
The Dutch portfolio delivered net production of 143 boepd in the half (down from 181 boepd a year ago) as fields naturally decline. The focus now is on low-cost drilling to nudge volumes back up. On Drenthe V, studies, well design and modelling are complete and long-lead items are already acquired. The plan is to drill an infill at GSB-02 during 2026.
Over on Drenthe VI, last year’s subsurface work flagged two additional prospects alongside the VDW-A target. These would require unitisation with neighbours, which adds a negotiation step, but the slate looks encouraging.
Importantly, Parkmead is un-hedged. That stung when TTF averaged €32.14/MWh in the half (down from €38.16/MWh), but the post-period jump of well over 50% could swing the other way if sustained. Management also flags the Netherlands’ stable fiscal regime – reassuring when planning new wells.
UK North Sea sale: cash in now, chunky contingent later
Parkmead has already banked £7.3 million from the sale of Parkmead (E&P) Ltd to Serica, received £3.1 million in February 2026, and has a further £3.9 million due in February 2027. There is no exposure to the costs of licences P2400 (Skerryvore) and P2634 (Fynn Beauly).
The bigger prize is contingent: up to £120 million payable upon NSTA approval of field development plans – capped at £30 million for Skerryvore and £90 million for Fynn Beauly, calculated at £0.8/bbl of 2P reserves net to the divested company’s 50% interest. Serica, now operator, is obliged to drill an exploration well on Skerryvore by 31 March 2027 and estimates up to 36 mmboe recoverable with a 43% chance of success. On Fynn Beauly, the current commitment is technical studies.
Investor read-across: none of this is guaranteed, but Parkmead keeps meaningful upside without writing cheques.
Financial performance: steady operations, lower prices, strong liquidity
Revenue was £1.5 million (1H FY25: £2.1 million) as production drifted and prices softened. Cost of sales rose to £1.8 million due to higher non-cash depletion charges in the Netherlands. Administrative expenses were £0.8 million, aided by a £0.1 million credit from the revaluation of share appreciation rights. The operating loss was £1.2 million and the net loss came in at £0.9 million.
Kempstone Hill, Parkmead’s wholly owned Scottish wind farm, delivered £0.2 million of revenue and 91% uptime after planned low-season maintenance on Turbine 3. Debt remains minimal at £0.7 million, matched against a cash and deposit stack that strengthened post period end.
| Key metric | 1H FY26 | 1H FY25 | Comment |
|---|---|---|---|
| Revenue | £1.5 million | £2.1 million | Lower production and prices |
| Net production | 143 boepd | 181 boepd | Natural decline |
| Average realised TTF | €32.14/MWh | €38.16/MWh | Prices fell in-period |
| Operating (loss) | £1.2 million | £1.0 million | Higher depletion charges |
| Net (loss) | £0.9 million | £1.2 million | Loss narrowed |
| Cash | £8.9 million | £6.8 million | As at 31 Dec 2025 |
| Term deposits | £4.0 million | Not disclosed | As at 31 Dec 2025 |
| Total cash + deposits (post period) | £16.1 million | Not disclosed | After £3.1 million receipt |
| Net assets | £26.1 million (23.9p/share) | £18.5 million | Balance sheet strengthened y/y |
| Debt | £0.7 million | Not disclosed | Small lease-backed facility |
| Kempstone Hill uptime | 91% | 99% | Maintenance completed in low season |
My view: a balanced energy mini-portfolio with cash to deploy
This is a tidy set of interims for a company in transition. The near-term P&L won’t set pulses racing – gas volumes eased and prices were soft – but Parkmead exits the half with £16.1 million of liquidity, minimal debt, and multiple shots on goal. That cash pile, at 14.7 pence per share, gives optionality to add cash-generating renewables onshore UK and to prosecute the Dutch drilling programme without financial strain.
The big swing factor is Glenskinnan. If the Section 36 application lands in 2026 as planned, perceived risk should fall and project value start to crystallise. On hydrocarbons, late-2026 drilling in the Netherlands offers relatively low-cost, near-field upside, while the Serica deal preserves exposure to Skerryvore and Fynn Beauly without capex.
Negatives: timelines are back-end loaded, Parkmead remains loss-making, and being un-hedged cuts both ways if European gas prices retrace. Planning and permitting always carry uncertainty.
Key risks and what I’m watching next
- Section 36 progress at Glenskinnan – submission in 2026 and any signs of an expedited review under Clean Power 2030.
- Netherlands drilling schedule – firm dates for GSB-02 on Drenthe V and updates on the two Drenthe VI prospects.
- European gas prices – Parkmead is fully exposed to price moves; sustained strength would feed straight through to revenue.
- North Sea contingent payments – watch Serica’s timetable on Skerryvore (well legally due before 31 March 2027) and progress on Fynn Beauly studies.
- Acquisitions – management is actively evaluating value-accretive deals, especially UK onshore renewables that add immediate cashflow.
Bottom line
Cash-rich, lightly geared and with tangible catalysts across wind, solar, storage and Dutch gas, Parkmead looks sensibly positioned. Execution on Glenskinnan and a clean run into the Netherlands drilling campaign would, in my view, be the twin drivers to rerate sentiment through 2026-2027.
