Low oil prices see HydroDec swing to a loss

Clean-tech industrial oil re-refiner HydroDec swung to a loss in the 2015 calendar year, reporting tough trading in a low oil price environment on Tuesday.

The AIM-traded company reported total income as decreasing to $43.8m, from $54.7m in 2014.

HydroDec’s total sales volumes increased to 62.1 million litres during the year, from 48.6 million litres, with the board putting that down the acquisition of Eco Oil in April 2015.

Gross profit was recorded as $1.1m, a significant decrease from $14.3m a year earlier. HydroDec blamed this on limited revenues from its Canton facility, lost production in Australia following the relocation to Bomen, and the adverse impact of lower global oil prices on the UK recycling business.

The group’s operating LBITDA was $12.8m, compared to a 2014 EBITDA of $1.6m.

“In order to reinforce the company’s working capital headroom, it announces today that it has entered into an agreement to extend its £2m secured second working capital facility with Andrew Black, a non-executive director, announced on 1 December 2015, by a further £2.25m to £4.25m,” HydroDec’s board said in a statement.

Shares in HydroDec were trending down in morning trading, and at 1220 BST were 0.95% below the waterline at 2.6p.