LONDON (Alliance News) - Hydrodec Group PLC on Wednesday said it made significant progress in delivering its key objectives in the first half of 2016, and expects revenue in the core re-refining business to more than double.
The clean technology industrial oil re-refining group said sales volumes of premium quality SUPERFINE transformer oil and base oil grew to 16.8 million litres in the first half of 2016, from 1.7 million litres in the first half of 2015.
It said this reflected full commissioning of the new Canton plant in Ohio at the end of 2015, contributing to record monthly sales of 3.2 million litres in June.
Hydrodec said plant utilisation also improved, with Canton reaching 76% in May, while it saw continued successful production in Australia and an improving feedstock position.
Revenue from the continuing core re-refining business is expected to more than double in the first half to USD7.6 million from USD3.3 million, while gross unit margin will also be higher despite lower product sales prices and challenging market conditions.
Hydrodec added that its key objective for the rest of the year is to strengthen margins as it grows market share, while continuing to reduce costs. It said it is making strong progress towards positive earnings before interest, tax, depreciation and amortisation in the second half of the year.
"I am pleased to be able to report significant progress in moving Hydrodec towards profitability and expanding its position in the transformer oil market in our key operating arenas. Whilst market conditions remain challenging, we are focused on delivering our operational plans and also primed to take advantage of the opportunities the current market may yet present to grow the business both in our existing areas of focus and in new markets," Chief Executive Chris Ellis said in a statement.
Shares in Hydrodec were trading up 10% at 3.77 pence on Wednesday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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