Hydrodec to Expand in U.S. After Reporting Record Revenue
Hydrodec Group Plc (HYR), a U.K.-based re-refiner of industrial oils, is nearing an accord to more than double capacity in the U.S. with a partner.
“This deal is progressing very well and we expect to be in a position to announce signing of the final agreements within the next month,” the London-based company said today in a statement, without identifying the partner. It also reported an eighth year of sales growth, citing “solid” U.S. performance.
A four-year surge in crude prices has boosted incentives for companies to recycle waste oils and lubricants that formerly would have been discarded. Hydrodec is also capitalizing on environmental rules that restrict disposal of the fluids. Chief Executive Officer Ian Smale, who spent 30 years at BP Plc before joining Hydrodec in January 2012, has led its growth as demand from power utilities expands in North America and Australia.
The company said in November it was negotiating feedstock volumes with a potential partner to increase annual capacity in North America to 65 million liters (17.2 million gallons) from 27 million liters. It plans to add six U.S. production units to its current four, which may include two at its site in Canton, Ohio, Smale said today by telephone.
Sales rose 17 percent last year to a record $26.1 million, according to the statement. The net loss widened to 3.48 cents a share from 3.2 cents a year earlier. The stock, which is listed on London’s Alternative Investment Market, fell 5.1 percent to 11.625 pence at the close of trading.
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