Hydrodec Trims Operating Losses


Transformer oil rerefiner Hydrodec posted an operating loss of $2.1 million for the six months ended June 30, improving from a $3.1 million operating loss in the year-earlier period.

The company reported revenue of $9 million for first half of this year, up 11 percent from $8.1 million a year earlier, which Hydrodec attributed to improved pricing and sales mix.

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Total product sales volumes for Hyrodec reached almost 15.1 million liters during the first six months of this year, down 10 percent from 16.8 million liters in the year-earlier period, which the company attributed to a less active feedstock market in the United States, particularly in the second quarter. This included 1.9 million liters for its Australian operation, up 45 percent from the prior year.

The company has increased the proportion of transformer oil sales from its U.S. rerefinery, over its lower-margin process oil sales, to 58 percent in the years first half, compared to 42 percent in the first half of 2016. CEO Chris Ellis noted that improving the sales mix of products produced at its plant in Canton, Ohio, was a primary objective.

Ellis noted that the Canton plant utilization during the six months averaged 61 percent, down from 65 percent during the first half of 2016. This indicates the spare capacity and potential for further significant operational and financial improvement when the feedstock position improves, he said in the companys interim report.

Hydrodec operates transformer oil rerefineries in Canton, and in Australia in Bomen, New South Wales.

We continue to seek to take advantage of any opportunities the current market may yet present to grow the business within our existing platforms, and will be focused on deploying our technology into new geographies and markets in the coming months, Ellis said.

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