Parkmead Group’s boss said the energy company had “retained its financial strength” despite being pushed into the red by falling gas prices.
Executive chairman Tom Cross also said the firm, which is making its first foray into renewables, was carrying out studies for a large wind farm on land it bought in Aberdeenshire last year.
Parkmead, headquartered in Aberdeen, recorded pre-tax losses of £1.4 million in the six months to December 31, 2019, against profits of £3.8m for the same period in 2018, as revenues dropped to £2.1m from £5.3m.
The company, whose production comes from onshore gas fields in the Netherlands, suffered as gas prices plummeted 66% between October 2018 and February 2020 due to LNG oversupply in Europe.
But London-listed Parkmead, which has cash balances of £26m, said its Dutch assets operated at very low costs.
In the UK North Sea, the company remains in talks with Cnooc about the use of the Chinese firm’s Scott platform as a host for Parkmead’s Greater Perth Area (GPA) project, in the outer Moray Firth.
And Parkmead continues to talk to oilfield service companies about GPA, which could deliver 75-130 million barrels of oil equivalent.
And new seismic covering the Skerryvore prospect and surrounding area is being reprocessed throughout 2020 to mature the collection of prospects, in the central North Sea.
Skerryvore overlies two other prospects and Parkmead believes combining the three could deliver more than 150m barrels.
Mr Cross said: “I am pleased to report excellent progress in the six-month period to 31 December 2019 across the Group, despite our revenues being impacted by the low gas price environment.
“Parkmead has delivered growth in its asset base whilst retaining financial strength. This creates a very good foundation from which to build and gives us confidence that we will remain robust in the context of broader global uncertainty brought about by the Covid-19 pandemic.
“Through a strategic acquisition, we are evaluating a number of renewable energy opportunities. Renewable energy is directly in line with Parkmead’s business plan, broadening and enhancing the group’s energy asset base.”