Hydrodec Group's revenues from continuing operations increased 148% to US$8.1 million in the six months to the end of June, reflecting the full commissioning of the Canton plant at the end of last year.
The Group sold 16.8 million litres during the period, an increase of 217% on the corresponding period in 2015 which had included 3.6 million litres of traded oil whilst the US business was being recommissioned.
Of the volumes sold in the period, 40% represented transformer oil and 60% was base oil, with margins steadily improving since the beginning of the year.
- H1 2016 gross unit margins in continuing business higher than H1 2015 despite lower product sales prices and challenging market conditions
- Key focus on reduction of corporate costs in continuing operations, falling from US$2.1 million (H1 2015) to US$1.5 million
- Group EBITDA from continuing operations improved from US$3.4 million loss (H1 2015) to US$1.1 million loss - expectation of move to positive EBITDA in H2
- Overall loss for the period (including discontinued operations) down from US$8.4 million (H1 2015) to US$5.3 million
- Operating cash outflow (before working capital movements) reduced to US$2.0 million (H1 2015: US$5.8 million)
Chief executive Chris Ellis said: "I am pleased to be able to report significant progress in moving Hydrodec towards profitability and re-establishing its position in the transformer oil market in our key operating arenas as we have moved Canton into full operations and improved efficiency in Australia.
"Whilst market conditions and margins, particularly in the US, remain challenging, both operations are generating positive EBITDA and the focus now for the rest of this year is to improve margins and profitability as well as taking advantage of any opportunities the current market may yet present to grow the business within both our existing platforms and in new markets."