19th Jan 2015 09:35
LONDON (Alliance News) - Hydrodec Group PLC saw its shares fall Monday morning, despite saying that revenue and operating profit rose in 2014, buoyed by a 26% increase in oil sales.
In a trading update, the industrial oil re-refiner said its expects 2014 earnings before interest, tax, depreciation and amortisation to be up on 2013, and revenue to be up 35% at USD54 million, from USD40.1 million in 2013, marking a tenth consecutive year of growth.
It said total oil sales in 2014 are expected to rise to 48.6 million litres, from 38.3 million a year earlier.
In an outlook statement, the company said it is hoping to get clearance to develop a base oil re-refining plant on the Wirral in the UK by the end of the second quarter of 2015, while the rebuilding and expansion of its Canton plant in the US is on track for the end of the first quarter.
It has also cut headcount and costs by GBP500,000 at its UK used oil market business, in response to the recent fall in oil prices, while the relocation of operations to the Southern Oil re-refinery in Australia remains on track to take place during the first quarter of this year.
Hydrodec's Canton re-refinery in Ohio was hit by a fire in December 2013. It settled an insurance claim resulting from the incident for USD18.75 million net.
'Despite volatile market conditions in general and the more specific challenges posed by the rebuild of our Canton facility, Hydrodec has continued to develop its technical and operating platform, whilst improving its financial base," Hydrodec Chief Executive Ian Smale said in the statement Monday.
"Whilst market conditions do 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," he added.
Hydrodec shares were down 2.2% at 9.05 pence Monday morning.
The company will put out its full 2014 results on March 23.
By Steve McGrath; [email protected]; @stevemcgrath1
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