SUGAR LAND, Texas, Feb. 20, 2018 /PRNewswire/ -- Trecora
Resources (NYSE: TREC) a leading provider of high purity specialty
hydrocarbons and waxes, today provided an update on its South
Hampton Resources Advanced Reformer unit. Last Wednesday night,
while commissioning the new Advanced Reformer, the unit overheated
and ignited a small fire. The response team quickly extinguished
the fire without injury, and there was no environmental
impact.
Despite the quick reaction of the team, there was some damage to
all six heaters in the unit and the
damaged equipment will have to be replaced. The Company's best estimate of the delay to the start-up of the Advanced
Reformer is three to four months, so the
estimated start-up will now occur early in the third quarter
2018.
Insurance adjustors have been to the site, and while it is too
early to have a firm estimate of repair costs, it is anticipated that the Company's
insurers will cover any costs over the $1
million deductible for such incidents.
The Company remains optimistic about the business benefits of
the Advanced Reformer unit, which will convert byproducts of
pentane production into a significantly higher value byproduct
stream through proven technology.
While this incident has delayed the realization of the financial
benefits of this project, the Company continues to expect an
approximate $6 million annual EBITDA
benefit at start-up and $12 to
$14 million of annual EBITDA benefit
at full capacity.
As previously announced, the Company will report fourth quarter
and full year 2017 earnings after market close on March 7, 2018.
About Trecora Resources (TREC)
TREC owns and operates
a facility located in southeast Texas, just north of Beaumont, which specializes in high purity
hydrocarbons and other petrochemical manufacturing. TREC also owns
and operates a leading manufacturer of specialty polyethylene waxes
and provider of custom processing services located in the heart of
the Petrochemical complex in Pasadena,
Texas. In addition, the Company is the original developer
and a 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian
joint stock company.
Investor Relations Contact:
Jean Young
The Piacente Group
212-481-2050
trecora@tpg-ir.com
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SOURCE Trecora Resources