Iofina PLC (AIM:IOF, OTC:IOFNF, FRA:IF7) said revenue and profit reached records and debt fell in the first half of the year despite production outages caused by extreme weather and reduced brine supply.
After hitting its revised production target of 249.4mln tons (MT) in the interim period, the iodine maker said it is on track to increase production in the second half of the year to 260-275MT.
President and chief executive officer Tom Becker called it an “excellent performance” and the company expects demand for iodine and its end-use products to improve as customer markets continue to recover.
In the first six months of 2021, revenue came in at US$19.9mln, an increase of 27% on the same period a year earlier as the revised production target was hit and there was sufficient production and reserves to take advantage of demand.
With admin costs almost unchanged year on year and interest payments reduced, profit before and after tax increased 164% to US$3.5mln.
At US$7.2m net debt is down US$2.7mln since a year ago, after capital expenditure of $0.8m on the Iofina Chemical plant and US Government small business loans of $1.1mln were forgiven.
Becker said the chemicals division “continues to excel with its product range and capabilities, and is a vital driver of group sales and earnings”.
He said the group anticipates construction will begin on the new IO#9 plant before year-end.
“With debt further reduced we are in an excellent position to invest in our operations and continue to implement our growth strategy.
“As Iofina executes its growth plans and iodine prices continue to increase, Iofina will be well positioned for success in the future and to deliver shareholder value.”