30th Apr 2018 14:00
LONDON (Alliance News) - Iofina PLC on Monday said that its loss widened and revenue declined in 2017, but iodine production rose despite operating fewer facilities.
The chemical derivatives company said revenue for 2017 totaled USD20.8 million, down 7.0% from USD22.5 million the year before, as iodine sales fell by 20% to USD15.9 million from USD12.8 million.
Iodine production climbed by 6.0% to 503.0 metric tonnes from 474.2 metric tonnes the prior year. This increase was despite the loss of production from IO No. 3 plant in April, the company said, and the numerous curtailments at IO No. 5 plant throughout the year.
Sales of non-iodine products rose year-on-year by 22% to USD8.0 million from USD6.5 million, reflecting volume increases.
Pretax loss widened sharply to USD9.8 million from USD3.8 million the year before, after the company booked an impairment of USD5.3 million, with major spend related to the balance of installation and other costs associated with IO No. 3 plant.
The company also said that it invested USD2.1 million to the construction, improvements and completion of IO No. 7 plant at the chemical processing facility.
Iofina reduced administrative expenses during the year to USD5.5 million from USD6.0 million, but finance expenses grew to USD2.8 million from USD2.1 million.
Looking ahead, the company said it plans to expand operations, by adding more efficient plants, in order to continue to reduce its production costs. Iofina has focused on growth opportunities in high iodine content areas with favourable operating costs, it said.
"Continued focus on operational excellence has resulted in increased year-over-year production, despite operating fewer facilities in 2017," said Chief Executive Tom Becker. "Iodine prices continue to strengthen, and the group is well placed to advance its position in the global iodine market. As a result, the board is confident in the group's outlook for 2018."
Shares in Iofina were trading 0.3% lower at 18.00 pence per share on Monday.
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