Energy developer Parkmead has swung back into profitability following a tripling of revenues driven by surging gas prices.

The Aberdeen-based company said its “high-quality Dutch assets” performed particularly well after last year’s move to double Parkmead’s interest in the Grolloo, Geesbrug and Brakel onshore gas fields to 15 per cent. With no hedging contracts to limit its exposure to rises or falls in market prices, Parkmead’s revenues flourished as the cost of gas surged from approximately €25 per megawatt hour in June of last year to €160/MWh in March.

“The innovative royalty deal we completed last summer is proving to be highly advantageous and is adding considerable value to Parkmead,” chief executive Tom Cross said. “Parkmead is 100% unhedged and is directly benefitting from these additional gas sales at higher prices.

“We now plan to increase our activity in the Netherlands with a firm drilling campaign planned for 2022/23.”

READ MORE: Aberdeen oil and gas group buys windfarm near Stonehaven

The AIM-traded company posted revenues of £4.6 million during the six months to the end of December, up from £1.5m in the same period a year earlier. Gross profit rocketed by 389% to £3.8m as profit margins jumped from 50% to 82%.

Profit before tax came in at £1.3m, compared to a previous loss of £1.4m, while at operating level profits were £1.9m.

The group, which has also been expanding into renewable energy, has proven and probable reserves of 45.6 million barrels of oil equivalent. It added that it is “well-positioned” for further acquisitions in the oil, gas and renewables sectors.

Parkmead has already acquired a range of assets under the leadership of Mr Cross, who previously headed up Dana Petroleum. At Dana, he used acquisitions to build the business into one of the North Sea’s leading independents before it was sold to Korea’s KNOC for £1.9 billion in 2010.

Shares in Parkmead closed yesterday’s trading 3p higher at 52p.