News blog

TXO

• BY: Andrew Hore |
• POSTED: 28/04/2014 |

Waste oil cleaning technology and services provider TXO believes that it could become cash flow positive during 2014. 

There was a £586,000 outflow from operations in 2013. Net debt was £1.16m at the end of 2013. Once TXO’s associated companies start to generate profit they will distribute dividends to their shareholders, including TXO.

TXO owns 35.7% of The Grand Bahama Group Ltd (GBG), which has secured a contract to provide remediation services for a significant quantity of used oil. The used oil is in three storage ponds that are a legacy of the previous occupier of a major oil storage terminal in the Bahamas. An initial 43,000 barrels of the oil are already being processed and there are plans to sell it to a US refiner with GBG generating a large share of the proceeds. TXO’s other two businesses Oil Recovery Services and Oil Tech Royalties are also involved in providing technology for the process.

The project should last three months and if the contract is successful it should put the business in a strong position to win other contracts.

GBG is developing a waste oil recovery facility at Freeport, Grand Bahama and phase 1 is already operational. Revised plans for expansion mean that the additional phases will not require as much capital investment as first envisaged.

At 0.08p a share, TXO is valued at £2.1m.

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