Clean Harbors Announces Revisions to Used Oil Pricing Policies In Safety-Kleen Waste Oil Business
Company Expands Charge-for-Oil and Stop-Fee Programs to Reflect Current Market Dynamics
NORWELL, MASSACHUSETTS – (BUSINESS WIRE) – Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental, energy and industrial services throughout North America, today announced that its Safety-Kleen subsidiary is revising pricing related to managing used engine and industrial oils. Effective immediately, Safety-Kleen is expanding its charge-for-oil (CFO) program to full implementation across its used oil customer base, as well as increasing its service stop-fee program.
Jerry Correll, Safety-Kleen President, said, “The recent decline in crude oil pricing, along with associated decreases in fuel and base oil pricing, have materially affected the values of our recycled fuel oil (RFO) and re-refined products. Given the impact of these falling prices, we are now charging disposal rates in order to mitigate the market-derived pressure on our margins and avoid further deterioration in the existing spread. The announced rate adjustments reflect full implementation, effective immediately, of the CFO program in both the U.S. and Canada. In addition, we are significantly expanding our stop fee program to help recoup transportation and labor costs associated with oil collection services, with an emphasis on remote service locations.
“We continue to see margin pressure in our waste oil collection business due to the ongoing energy market deterioration,” Correll said. “As we did last December when we announced Zero-Pay, Safety-Kleen is continuing to address energy market drivers that affect those margins. We believe these rate changes and stop fees are needed for Safety-Kleen to be fairly compensated for the safe, reliable and quality service we provide to more than 200,000 customers throughout North America.”
About Clean Harbors
Clean Harbors (NYSE: CLH) is North America’s leading provider of environmental, energy and industrial services. The Company serves a diverse customer base, including a majority of the Fortune 500, across the chemical, energy, manufacturing and additional markets, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts,Clean Harbors operates throughout the United States, Canada, Mexico and Puerto Rico. For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions. Such statements may include, but are not limited to, statements about future financial and operating results, and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors’ management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, those items identified as “risk factors” in Clean Harbors’ most recently filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the “Investors” section of Clean Harbors’ website at www.cleanharbors.com.
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Source: Clean Harbors, Inc.