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Hydrodec sales volumes improving

By BFN News | 09:13 AM | Thursday 02 December, 2010


Cleantech industrial oil re-refining group Hydrodec is seeing strong market demand and sales volumes improving. It says demand for the group's SUPERfine transformer oil brand remained strong and continued to exceed production as it gains growing acceptance from power utility customers and original equipment manufacturers. Both plants continue to operate well and sales volumes in the second half of the year have already exceeded the first six months (9.4m litres) with a month of sales still to come. Third quarter volumes were 5.53m litres, slightly below expectations largely due to the push-back of some US feedstock supplies from the final two weeks of September into October. But it says that despite strong sales and production performance, feedstock supplies, while improving, remain a constraint. The group's key operational focus is the active pursuit of strategies to escalate feedstock volumes. Diversification continued with supplier numbers in the US almost doubling during the year from 12 to 22, and there remains scope to improve feedstock availability further. It says the recent fund-raising has significantly strengthened the group's balance sheet, giving access to bank credit facilities with proposals from a number of US banks currently under consideration. Looking to 2011, the group expects to achieve an operating cash surplus for the first half and to be net cash generative from then on. Story provided by StockMarketWire.com