Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHYR.L Regulatory News (HYR)

  • There is currently no data for HYR

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Q3 Trading Update

26 Oct 2017 07:00

RNS Number : 6492U
HydroDec Group plc
26 October 2017
 

26 October 2017

 

Hydrodec Group plc

("Hydrodec", the "Company" or the "Group")

 

Q3 Trading Update

 

Hydrodec Group plc (AIM: HYR), the cleantech industrial oil re-refining group, is pleased to provide a trading update for the quarter ended 30 September 2017.

 

Highlights

· Strongest quarterly EBITDA performance in Group's history, with Group EBITDA expected to exceed US$330,000, representing an improvement of US$605,000 on the comparable period last year (Q3 2016: loss of US$275,000), driven by improved pricing and margins and reductions in corporate costs

· Revenues expected to exceed US$4.7 million (Q3 2016: US$4.3 million)

· Group sales volumes of premium quality SUPERFINE transformer oil and base oil of 7.7 million litres (Q3 2016: 8.2 million litres)

· Canton plant utilisation consistent with H1 2017 at 61% - feedstock remains key constraint to higher throughput and strategic initiatives continue to progress in securing sustainable, increased supplies going forward

· Gross unit margins materially up on prior year at 14% (Q3 2016: 7%) - driven by improved sales mix in the US between higher margin transformer oil and lower margin base oil - and further improvement on H1 (H1 2017: 13%)

· In the US business, the Company is pleased to confirm the award of a two year agreement to supply up to 7.6 million litres annually of its SUPERFINE transformer oil to a major transformer original equipment manufacturer ("OEM")

Outlook

This update confirms the progress over the past 12 months, with Q3 demonstrating further improvement over the recent half year results. Demand for our product remains robust and the award of a two year contract from a major OEM in the US underlines the quality of the product the Company produces. The focus remains on expanding the number and value of significant feedstock contracts that in turn will drive the utilisation of the operations and further improve the Group's EBITDA and cash-flow generation going forward.

 

Chris Ellis, Chief Executive Officer of Hydrodec, commented: "I am very pleased to confirm further strong progress in positive Group EBITDA in the most recent quarter of 2017, as much of the recent hard work begins to reap its reward. As indicated at the beginning of the year, I am confident that 2017 will see the Group deliver full year positive EBITDA for the first time in its history, with scope for further material improvement from the existing facilities. While maintaining a sharp focus on the operational performance of the business, we will look for opportunities to deploy our clean-tech re-refining technology to capitalise on the large market opportunity that we see."

 

For further information, please contact:

 

Hydrodec Group plc

 

01372 824750

Chris Ellis, Chief Executive

 

 

 

Canaccord Genuity (Nominated Adviser and Broker)

 

020 7523 8000

Henry Fitzgerald-O'Connor

Richard Andrews

 

 

 

Vigo Communications (PR adviser to Hydrodec)

 

020 7830 9700

Patrick d'Ancona

Chris McMahon

 

 

Notes to Editors:

Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially 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. Spent oil is currently processed at two commercial plants 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 Company's proprietary technology and standing as a leader in its field.

 

Hydrodec's plants are located at Canton, Ohio, US and Bomen, New South Wales, Australia. 

 

Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTLELLLDBFEFBF
Date   Source Headline
6th Apr 20217:00 amRNSCancellation - Hydrodec Group plc
1st Apr 20215:30 pmRNSHydrodec Group
31st Mar 20217:00 amRNSBusiness Update
3rd Feb 20213:42 pmRNSFinancing update
2nd Oct 20201:26 pmRNSHolding(s) in Company
1st Oct 20207:30 amRNSSuspension - Hydrodec Group plc
1st Oct 20207:00 amRNSTrading and year end update
13th Jul 20203:06 pmRNSHolding(s) in Company
10th Jul 20209:05 amRNSHolding(s) in Company
26th Jun 20207:00 amRNSAnnual Report and Accounts Extension
19th May 20207:00 amRNSTrading Update
7th Apr 20207:00 amRNSHolding(s) in Company
24th Mar 20201:08 pmRNSCanton facility update
14th Feb 20207:00 amRNSTrading Update
2nd Jan 20204:47 pmRNSHolding(s) in Company
24th Dec 20197:00 amRNSFinancing update
6th Dec 20197:30 amRNSDirectorate Change
21st Nov 20197:00 amRNSHolding(s) in Company
6th Nov 20199:14 amRNSHolding(s) in Company
8th Oct 20197:00 amRNSHolding(s) in Company
2nd Oct 201911:01 amRNSHolding(s) in Company
30th Sep 20194:40 pmRNSSecond Price Monitoring Extn
30th Sep 20194:35 pmRNSPrice Monitoring Extension
30th Sep 201911:09 amRNSChange of Registered Office
30th Sep 201911:01 amRNSHolding(s) in Company
27th Sep 20197:00 amRNSUnaudited Interim Results
13th Aug 20197:00 amRNSDisposal of Hydrodec's Australian Plant
1st Jul 20191:14 pmRNSUpdate on the sale of Australian operations
20th Jun 20195:49 pmRNSResult of AGM
20th Jun 20197:00 amRNSAGM Statement
28th May 201910:14 amRNS2018 Annual Report and Accounts and Notice of AGM
28th May 20197:00 amRNSFinal Results
2nd Apr 20197:00 amRNSGrant of Options
29th Mar 20197:00 amRNSPre-close Trading Update
12th Mar 20197:00 amRNSBoard Changes and Appointments at HoNA
31st Dec 20181:26 pmRNSHolding(s) in Company
28th Dec 20187:00 amRNSHydrodec takes control of N.American operations
1st Nov 20183:50 pmRNSChange of Registered Office
1st Nov 20181:00 pmRNSHolding(s) in Company
31st Oct 20183:10 pmRNSHolding(s) in Company
31st Oct 20189:20 amRNSHolding(s) in Company
30th Oct 20185:15 pmRNSHolding(s) in Company
30th Oct 20184:30 pmRNSHolding(s) in Company
30th Oct 20182:30 pmRNSHolding(s) in Company
30th Oct 20182:30 pmRNSHolding(s) in Company
25th Oct 201811:00 amRNSResult of General Meeting
25th Oct 20187:00 amRNSResult of Open Offer
9th Oct 20183:30 pmRNSPosting of circular and notice of general meeting
8th Oct 201810:20 amRNSResult of Placing
8th Oct 20189:05 amRNSSecond Price Monitoring Extn

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.