Iofina PLC (LON:IOF) said it produced a record amount of crystalline iodine in 2020, despite being affected by the coronavirus (COVID-19) pandemic.
Full-year production clocked in at 609.9 tonnes of crystalline iodine, up from 602.7 tonnes in 2019, which itself was a record year.
In the second half of 2020, 325.5 tonnes of crystalline iodine was produced, up 14% on the first half of the year.
Iofina now operates five iodine production plants in western Oklahoma, with the latest plant – IO#8 – brought online last year on time and on budget at a total cost of US$3.1mln.
The group, which produces iodine from brine solutions produced in oil and gas fields, expects more drilling and workover activity in 2021 than was seen in 2020, which is likely to provide more brine water for the company to process.
The Iofina Resources business is expected to produce between 285 and 305 tonnes of crystalline production in the first half of 2021, compared with 284.4 tonnes in the first half of 2020.
Despite lower demand for iodine in the second half of 2020, indications in 2021 suggest that the iodine market is recovering, Iofina said.
Iofina has already taken on significant iodine orders for 2021 which will reduce inventories. Despite COVID-19, Iofina expects spot iodine prices at the beginning of 2021 will be similar to the beginning of 2020 and to remain stable throughout the first half of the year; however, this will likely be dependent on the rate of global economic recovery.
The company added, in its market update, that its debt was significantly reduced during the year and is less than half that which it was two years’ ago while the interest rates on outstanding debt have been considerably reduced.
"I am delighted to announce another consecutive year of record iodine production for Iofina, with full-year 2020 production of 609.9 metric tonnes ('MT') of crystalline iodine. This production figure is testament to the dedication and resilience of our workforce and the company which, despite being affected by the COVID-19 pandemic and a challenging macro environment, has performed strongly,” said Tom Becker, the president and chief executive officer of Iofina in the statement.
"As we move into 2021, we are seeing increased demand and iodine sales commitments, while a recovering oil market will likely bring more drilling and workover activity than we saw in 2020, allowing us to continue delivering on our strategy to expand our iodine production. The directors are also continuing to evaluate opportunities for both improving existing plants and constructing new plants as part of the group's commitment to growth and increased profitability,” he added.