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Iofina production falls as iodine market recovers
15th Apr 2021 11:11
(Sharecast News) - Iodine and specialty chemicals extractor and producer Iofina reported a "strong recovery" in the iodine market in the first quarter on Thursday, with sales demand said to be at pre-pandemic levels.
The AIM-traded firm said a backlog of deferred orders processed pushed sales for the three month period to record levels.
It said global iodine spot prices were still increasing, with second quarter prices expected to fall in the $34 to $37 range.
The company produced 108.2 metric tonnes of crystalline iodine, down from 129.7 tonnes a year earlier, which was put down to abnormally extreme weather for two weeks in February.
"This quarter, Iofina has seen excellent sales for our crystalline iodine and specialty chemical products - a testament to the company's resilience and ability to capitalise on market recovery as we and the wider economy emerge from the challenging Covid-19 period," said president and chief executive officer Dr Tom Becker.
"Despite seeing lower production this quarter due to factors outside of our control, we were pleased with the sales figure for the period and are particularly encouraged to see the strong state of the iodine market and its recovery.
"Following the company's debt refinancing in 2020, and our consistent production diversified across plants and product lines, Iofina is on track to prudently continue its growth strategy."
At 1042 BST, shares in Iofina were down 3.2% at 12.1p.
The AIM-traded firm said a backlog of deferred orders processed pushed sales for the three month period to record levels.
It said global iodine spot prices were still increasing, with second quarter prices expected to fall in the $34 to $37 range.
The company produced 108.2 metric tonnes of crystalline iodine, down from 129.7 tonnes a year earlier, which was put down to abnormally extreme weather for two weeks in February.
"This quarter, Iofina has seen excellent sales for our crystalline iodine and specialty chemical products - a testament to the company's resilience and ability to capitalise on market recovery as we and the wider economy emerge from the challenging Covid-19 period," said president and chief executive officer Dr Tom Becker.
"Despite seeing lower production this quarter due to factors outside of our control, we were pleased with the sales figure for the period and are particularly encouraged to see the strong state of the iodine market and its recovery.
"Following the company's debt refinancing in 2020, and our consistent production diversified across plants and product lines, Iofina is on track to prudently continue its growth strategy."
At 1042 BST, shares in Iofina were down 3.2% at 12.1p.