Hydrodec Share Discussion Threads

[capricious] 03/12/2013 14:03

Thanks tongosti,

It's a real shame, just as all the cards were lining up.


Looking at business continuity(interruption) coverage, I'm hoping the policy basically covers what the business was expected to earn, until the interruption ends. So from the date of the incident, up until things are restored as before.

Now whether this prevents making additional changes, i.e. whilst your building again, you actually take the opportunity to increase performance, I don't know, but that continuity insurance hopefully will be a life saver. It will also mean, the planned projects should be able to continue as before.

Another point, are income valuations taken from the time of the incident, or averaged over a year. I think Hydrodec were close to announcing a positive EBITDA run rate (not over the year).

[tongosti] 03/12/2013 13:36

Sold all my holding in HYR yesterday for a very small profit which is a shame considering the potential of this company. I am not a trader but an investor who takes a long term view and who believes in the HYR story. However, there is so much we don't know at this stage re the accident and past experiences has taught me (the very hard way) to pull back and re-evaluate my investment on the back of a major adverse impact event. Will keep monitoring this company very closely with the view to potentially re-enter once I get a clearer visibility on what the impact on the US market will be like. GLA

[capricious] 03/12/2013 10:25

Earlier report with an updated picture

www.cantonrep.com/article/20131201/NEWS/131209989

[capricious] 03/12/2013 08:24

Up till now their safety record has been rock solid. The plant in Australia has been operating since June 2004 as a pilot (3000L/d) and full operation (20000L/d), since 2006.

Canton has been operating (80000L/d) almost 6 years.


The safety and stability of the technology has been proved without a doubt.



There was an explosion, maybe they will look at the hydrogen module, maybe this can be constructed in future outside the main reactor building, maybe they can add more than one reactor unit, to derisk. I think it easy to worry why this happened, as yet we know absolutely nothing about the why, what we do know is that in the oil industry, Hydrodec's safety record is excellent.

[quilarvium] 03/12/2013 06:58

HYDRODEC plant is shut and investigation is under way.Let's hope it's not bad news or HYDRODEC at fault.This could still get very painful and expensive to ones picket.

[spike_1] 02/12/2013 23:26

The big unknown is whether there is the possibility of a systemic or design fault that could conceivably render the Oz plant temporarily inoperative too. Yes all the checks will have been done prior to commission, but I believe these plants are relatively (or totally) unique, so there may be relatively little historical reference to set this against.

Presumably all the lead-up data will have been recorded onto computers sufficiently remote to now help with the investigation.

Fingers crossed until we know more.

Best wishes - Mike

[capricious] 02/12/2013 22:03

But Sue, I'm not disputing that there will be damage, it's the possibility of anyone coming to an accurate figure, especially attributing a quote from a first responder.

You didn't listen to the video you posted, the headline said $12 million, but the video actually says $0.5 million.

Lastly and most importantly, the whole site initially cost around $12 million. There have been upgrades and additions, but we have heard that all other structures are safe and undamaged. I can't see how if as it may be the case, totally rebuilding the reactor, equates to the cost of constructing another Canton site.


What this all says, is that until we get a definite update from Hydrodec, it's wild guess work with any final amount between the two already mentioned above.


A different point - timescales

It takes 9-12 months to construct a plant, so I'd imagine the rebuild will be much quicker, extra time will be taken by the testing and sign off by relevant parties.

[mattboxy] 02/12/2013 21:21

Does anyone know how much of revenues are generated from the canton plant? Is this the major refining plant or is Australia bigger?

[alanrussell] 02/12/2013 21:13

No claims discount gone for sure!

[sueyou1] 02/12/2013 21:09

capricious, look at the smoke billowing out, massive smoke damage inside for sure, then consider the heat in the building damaging the systems, chances are high that it will be an insurance write-off, $12m paid out by the insurance company and start again. That will of course take time, perhaps 6 months before we are back to normal there.

[capricious] 02/12/2013 19:14

Professional response, the experience of the board is evident in the RNS and video.

I believe that around this time demand for new orders starts to slacken off and refineries work down their existing inventories. The video says they have stocks and will enact an allocation system.


Once operational, time will be needed to build up the supply chain, some customers have been doing business with Hydrodec for years, the reason, the product is industry beating and the reputation the company has generated.

Customers will continue to be customers when things are back up.

[capricious] 02/12/2013 18:47

Sorry I was a bit slow, enjoying some home cooked curry

See interview with Ian

www.brrmedia.com/event/118953/ian-smale-chief-executive?popup=true&wl=666

[capricious] 02/12/2013 18:39

Hi sue, if u see further up, $12 million was the original cost of the entire site. In addition how can fire crews come up with an estimate?

Interestingly, if u listen to the entire video, right at the end, fire officials site $0.5 million in damages, neither can know the cost already if Hydrodec don't.

[mortimer7] 02/12/2013 18:34

2nd RNS published this evening

[sueyou1] 02/12/2013 17:40

Canton oil reprocessing plant fire causes $12 million in damage

by WKSU's AMANDA RABINOWITZ
and LAUREN SCHMOLL

Oil reprocessing plant fire causes $12 million in damage

A fire at an oil reprocessing plant in Canton on Sunday caused more than $12 million in damages. The Canton Repository reports that the Hydrodec North America plant in the Stein Industrial Park caught fire after an explosion about 4 p.m.Two employees were inside the transformer at the time and heard the explosion. They launched an emergency shutdown and made it out safely. The building houses oil, ammonia and liquid hydrogen-but there were no neighborhood evacuations. The cause of the fire is still unknown.

[sueyou1] 02/12/2013 17:18

Well that was a painful RNS :(

I was only posting my thoughts last night on the time-scale to 10-bag (as per Investors Chronicle) and HYR get hit with this.

It might take a little while to fix, but IMVHO just a topping up opportunity.

[capricious] 02/12/2013 16:52

This is speculation, but this was during the night, the two employees most likely were in the monitoring room, whilst control systems were probably running through the latest batch.

No one was injured, therefore no employee was in the immediate vicinity of the explosion, to me logic dictates that it less likely to have been some unsafe practice or procedure, i.e. something detrimental to insurance claims.

[capricious] 02/12/2013 16:27

Your welcome, this is a big setback, but they have the experience to turn the situation around, they have an unequalled supporter in Mr Black, and their relationship with G&S, which was built up before the deal was signed, is not so easily dropped.

[varies] 02/12/2013 16:19

Thank you, Capricious, for the comforting post about the insurance cover.

[capricious] 02/12/2013 15:44

Although the company will be waiting to assess the damage before giving further news, Edison have now also confirmed that insurance covers damages and business continuity.

[capricious] 02/12/2013 15:27

Shouldn't really answer such a useless post, but please furnish us with the information that you only seem to be privy to?

Where did you get 2 years from?
You do realise in Canton it is still only 10:23 in the morning?

You do realise that the plant has been operating for over 5 years? We don't know why it happened, they are insured, it's too early to prejudge the outcome of such.


They have some advanced plans for expansion, UK manu is expanding at it's fastest pace in years, OSS is well placed to increase profitability even without the future plans. I see no reason why the long term strategy will not continue as before.

[quilarvium] 02/12/2013 14:41

Time to sell! It's a disaster, this will have put us back two years!!Imagine all the red tape and redesigning and rebuilding new plants. Our partners may pull out and will not want 49% at all now.Why should they?No news is only bad news.Bite the bullet be brave and sell!Before this goes below 10p??

[3dwd] 02/12/2013 11:55

I believe they do have insurance .. and suspect the damage may not be as bad as first thought ,,, no doubt we will find out more quite soon