LONDON (Alliance News) - HydroDec Group PLC on Monday said its pretax loss narrowed in 2014 on the back of better revenue and a boost to its income from insurance payments related to the fire at its Canton, Ohio re-refinery in 2013.
HydroDec processes spent oil in the US and Australia, producing 'as new' oils primarily as transformer oil used by the electricity industry.
It said its pretax loss for the year was USD8.9 million, compared to a USD18.1 million loss in 2013. Revenue for the group increased to USD46.2 million from USD40 million a year earlier and other income, primarily comprising insurance payments related to the fire at its Canton re-refinery in Ohio in 2013, rose to USD8.5 million from USD436,000. Total revenue, therefore, hit USD54.7 million, up from USD40.1 million.
In addition to the boost from the Canton insurance payments, HydroDec's revenue was driven higher by a full-year contribution from OSS Group, the lubricant oil and processed fuel oil company it acquired out of administration in September 2013.
Total oil sales increased 31% to 48.6 million litres, up from 37 million litres a year ago, again boosted by OSS and by good oil sales in the US.
"Despite volatile market conditions in general and the very specific task of rebuilding our Canton facility, HydroDec continues to develop and strengthen its technical and operational platform, whilst improving its financial base," said Chief Executive Officer Ian Smale.
"As a result of the actions taken during the year, HydroDec will emerge stronger from the 'overhang' of the Canton insurance claim in 2014, with a more robust balance sheet and a clear sense of direction centred on our two core business streams," Smale added.
Shares in HydroDec were up 1.6% to 7.113 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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