Transformer oil rerefiner Hydrodec Group posted $54 million in revenues for the 2014 fiscal year, up 35 percent from the previous year.
In its trading update Jan. 19, the company said it expects oil sale volumes for 2014 to increase by 26 percent to 48.6 million liters, up from 38.3 million liters. The year included a full year of trading by United Kingdom-based used lube oil collector OSS – acquired by Hydrodec in 2013 – and oil sales in the United States. The company noted the used oil market in the UK has been significantly impacted by lower oil prices, with volumes declining due to changing industry practices. In response, OSS reduced its headcount and costs by more than 500,000 (U.S. $757,000).
The trading update included updates on ongoing and future projects.
Hydrodec said it has identified a location for a proposed U.K. rerefinery on the Wirral peninsula in northwest England. The pre-planning and permitting process is ongoing, and the company recently appointed a contractor to develop the front-end engineering design. Full project sanction is anticipated by the end of 2015s second quarter.
The companys Canton, Ohio, plant rebuild and expansion project continues and remains on target to start commissioning and operations by the end of the first quarter. Hydrodec is rebuilding the transformer oil rerefinery after a fire destroyed the plants processing unit in December 2013, with two new production trains and replacement of the four original trains.
In Australia, the relocation of operations to the Southern Oil transformer oil rerefinery remains on track to take place during the first quarter.
Despite volatile market conditions in general and the more specific challenges posted by the rebuild of our Canton facility, Hydrodec has continued to develop its technical and operating platform, while improving its financial base, CEO Ian Smale said in a news release. 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.