24 Mar 2020 13:08
24 March 2020
Hydrodec Group plc
("Hydrodec", the "Company" or the "Group")
Canton facility update
Hydrodec Group plc (AIM: HYR), the cleantech industrial oil re-refining group, confirms that following a legal "stay at home" order issued in the State of Ohio, the Company's facility in Canton, Ohio continues to operate as it is currently considered to be covered by the exclusions defined by "essential infrastructure" under the terms of that order.
Whilst the Company's facility remains operational at the current time, it is difficult to provide financial guidance on oil supply and demand levels over the short and medium term future and the Company continues to assess the impact that this order and COVID-19 will have on business performance. This could result in a shift in the balance of plant production to an increased H2 weighting or, depending upon the duration of the situation, a potential shutdown or reduced production, which would lead to a reduction in previous estimates for the current year's performance.
Further updates will be provided as the extent of the impact of the virus is determined.
For further information, please contact:
Hydrodec Group plc | hydrodec@vigocomms.com |
Chris Ellis, Chief Executive Officer and Interim Executive Chairman |
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Arden Partners plc (Nominated Adviser and Broker) | 0207 614 5900 |
Corporate Finance: Ciaran Walsh, Victoria Hodge Equity Sales: Aimee Kerslake |
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Vigo Communications (PR adviser to Hydrodec) | 020 7390 0240 |
Patrick d'Ancona |
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Chris McMahon |
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Charlie Neish |
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The information communicated in this announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process principally targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. MarketsandMarkets forecasts that the global transformer oil market is expected to grow from US$1.98 billion in 2015 to US$2.79 billion by 2020 at a CAGR of 7.14% from 2015 to 2020. Used transformer oil is processed with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations.
In 2016 Hydrodec received carbon credit approval from the American Carbon Registry ("ACR"), enabling its product to be sold with a carbon offset and creating an incremental revenue stream. The Group is now generating carbon offsets through the re-refining of used transformer oil, which would otherwise ordinarily be incinerated or disposed of in an unsustainable manner. This is a highly distinctive feature for the Group, confirming (as far as the Board is aware) Hydrodec as the only oil re-refining business in the world to receive carbon credits for its output. This is a significant endorsement of the Group's proprietary technology and standing as a leader in its field.
Hydrodec's operating plant is located at Canton, Ohio, US.
Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.