Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, announces its audited final results for the 12 months to 31 December 2017.
The Group increased the amount of iodine produced by six percent year-on-year and has continued to reduce iodine production costs at the Group's IOsorb® plants. Although the average iodine price in 2017 was similar to 2016, the Group improved its financial performance and was EDITDA positive.
Additionally, iodine prices have risen substantially since the middle of 2017, albeit they remain below historic prices. Nevertheless, given the improvements in the Group's operational gearing, and its confidence in being able to produce more crystalline iodine in 2018, the Group stands to benefit from recent price rises and looks forward to further improvements in its financial performance as the Group executes its growth strategy. With the success of IO#7, the Group fully expects to develop a further IOsorb® plant this year, in order to take full advantage of the improving industry backdrop.
2017 Financial Highlights:
- Gross profit increased by US$2.2m from $2.7m (12% of sales) to US$4.9m (23% of sales)
- EBITDA improved by US$2.7m from US$1.3m deficit to US$1.4m surplus
- Revenue decreased by 7% to US$20.8m (2016: $22.5m)
- Operating loss reduced from US$3.3m to US$0.7m
- Loss before tax was US$9.8m (2016: $3.8m) after an impairment charge of $5.3m
- Cash balances increased from US$2.8m to US$3.4m
- Capital investment was US$2.1m (2016: US$0.8m)
2017 Operational Highlights:
- Produced 503 metric tonnes ("MT") of crystalline IOflo® iodine from Oklahoma based IOsorb® plants (2016: 474.2MT)
- Began construction of IO#7 IOsorb® plant in September to execute new focus on growth of iodine production
- Iodine prices increased ~20% from start of 2017 until the start of 2018
- Iofina Chemical successful focus on development and profitability across the product range
Post Period Highlights:
- IO#7 IOsorb® plant online in mid-February 2018, executed within timeline and budget
- 118.2MT of crystalline iodine produced in Q1 2018
- Continuing drive to execute growth strategy to increase iodine output and lower production costs
- IOsorb® plant IO#5 under review to determine optimal utilization
- Iofina Chemical investing for increased capacity of existing products and development of new products
- Iodine prices expected to continue to move upward
Commenting, President and CEO Dr. Tom Becker, stated:
''The Board is pleased with the substantial progress the Company has made throughout the year, which has resulted in an EBITDA profit for the group.
"Continued focus on operational excellence has resulted in increased year-over-year production, despite operating fewer facilities in 2017. The Group is committed to growth, which has now started with the opening of IO#7 in February of 2018. Iofina's pledge to continue to be a lower quartile cost iodine producer with expansion of our iodine production is a continued goal and we fully expect to develop an IO#8 IOsorb® plant this year.
"Iodine prices continue to strengthen, and the Group is well placed to advance its position in the global iodine market. As a result, the Board is confident in the Group's outlook for 2018."
The Company is posting notice of its AGM to shareholders on 30 April 2018. The AGM will be held at 200 Strand, London WC2R 1DJ, on 13 June 2018 at 09.30 a.m.