June 4, 2019
Volume 3 Issue 3
Steeper Loss, Higher Revenue for Hydrodec in 2018
London-based transformer oil rerefiner Hydrodec posted a $13.7 million overall loss for 2018, compared to a $4.3 million loss in 2017. However, it reported higher full-year revenue at $14.9 million for 2018, up 10.5 percent from $13.4 million in 2017.
The company said the overall loss for the year reflected losses of $7.1 million associated with its discontinued Australian business and the costs of strategic review and business reorganization. Hydrodec said in September 2018 that it would sell its transformer oil rerefining plant in Wagga, New South Wales, or relocate it to another facility in the United States. Hydrodec expects to conclude the sale of the Australian business before its annual general meeting on June 20.
Improved revenues were attributed to improved pricing and sales mix.
Sales volumes of Hydrodec’s Superfine brand transformer and process oil from its Canton, Ohio, plant reached 23 million liters, down more than 10 percent from 2017. The decrease was entirely driven by feedstock constraints, the company said. Second half sales volumes of 12.7 million liters improved upon first-half sales of 10.3 million liters, due to increased feedstock.
Transformer oils represented 66 percent of Canton oil sales in 2018, up from 58 percent in 2017.
Hydrodec Executive Chairman Lord Moynihan said the company is just over a year into a two-year turnaround strategy started in 2018. “The review determined that a refinancing of the business was required to provide the necessary funds to pay down debt in order to provide a solid financial platform and improve supplies of feedstock, whilst also rebalancing the company’s stake in Hydrodec of North America to ensure full operational control of the group’s key facility,” Moynihan said in the news release. “It is in the U.S. where we intend to realize growth through improved feedstock acquisition, and new partnerships with U.S. government entities, U.S. utilities and field service collection companies.”