Iodine producer Iofina plc (LON:IOF) said total 2016 sales, through Iofina Chemical, have now surpassed 2015’s total.
The company has experienced increased sales volumes compared to last year for iodine products, including the company's produced IOflo crystalline iodine, while sales of non-iodine based products have outperformed its expectations.
However, it appears that the US fracking industry is picking up, because Iofina said that recently suppliers have been diverting water from the company to their own fracking operations. Consequently, after being consistent throughout the year, iodine production has slowed of late, with the situation exacerbated by water quality issues, and Iofina will not now meet its previously projected output level for the second half of 2016 of 250-270 tonnes.
The company now expects second half production of crystalline iodine to be 215-225 tonnes, with production returning to higher production levels in early 2017.
“We have been encouraged by the demand for Iofina's iodine and non-iodine based products during the second half of 2016 and anticipate that this demand will carry into the start of 2017,” said Dr Tom Becker, president and chief executive officer of Iofina.
“Whilst recent iodine production has fallen due to external factors, we are confident that production will return to normal levels very soon," he added.