22nd Jan 2014 08:35
LONDON (Alliance News) - Hydrodec PLC Wednesday said it expects to report a 52% increase in revenues for 2013, and underlying earnings before interest, tax, depreciation and amortisation significantly above the figure for 2012.
The clean technology oil re-refining company said It expects 2013 revenues to rise about 52% to USD39.7 million, from USD26.1 million in 2012, driven by a 9% increase in revenues from its re-refining business and thanks to its acquisition of lubricant and processed fuel oil company OSS.
It said it had achieved its target of a positive Ebitda run-rate in September, October and November, before the positive contribution made by OSS, which it acquired in September for GBP4.7 million in cash.
Gross unit margins in the re-refining business are expected to be significantly higher than in 2012, as better feedstock buying, higher volumes and tight cost control more than offset lower product sales prices.
Hydrodec said sales volumes of its premium quality Hydrodec SUPERFINE transformer oil and base oil rose 12% to 25.2 million litres. It said total oil sales were up 65% to 37.0 million litres including the OSS acquisition.
The company reiterated that it expects to repair, update and expand its Canton re-refining plant in Ohio that was damaged by a fire in December. It wants to add 50% to the capacity of the plant before the fire.
"The immediate objectives for 2014 include resolving the rebuilding and expansion of the US business in Canton as well as leveraging further integration of OSS within the group," the company said in a statement.
"Co-location with Southern Oil in Australia, development of a lubricant re-refinery pilot project in the UK and developing a UK re-refining business in collaboration with Essar are all key milestones for 2014," it added.
Hydrodec shares were up 8.8% at 11.29 pence early Wednesday, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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