Hydrodec Group unveils record annual revenues

Cleantech oil re-refining company Hydrodec Group on Tuesday posted an annual loss despite record revenue, plant utilisation, feedstock procurement and sales volumes in 2012.

Revenue grew 17% to $26.1m for the year to December 31st, the eighth consecutive year of growth.

Feedstock volumes were up 18% on the prior year, with the proportion of US feedstock procured directly from utilities up 39% from 23% in 2011.

Improved access to feedstock and better plant reliability drove utilisation of productive capacity to 70%, compared to 63% the year before.

Hydrodec reported sales volumes of 22.5m litres, a 11% year-on-year jump from 20.3m litres.

Gross profit rose 8.0% to $5.4m with margins at 21%, a slight drop from the previous year's 22%.

However, the company's underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in at a loss of $3.0m, up from the $2.1m loss a year ago. The group blamed an increase in investment in management, technical and operating capability.

"We have focused our first year on operational performance in the business, and investing for the future," said Chief Executive Officer Ian Smale.

"We have a clear strategy that will deliver a profitable transformer oil business based on the group's world class industrial oil re-refining technology."

Shares fell 5.10% to 11.62p at 09:37 Tuesday.

RD