Safety-Kleen Profitability Up Double Digits For Third Consecutive Quarter

The Safety-Kleen segment of Clean Harbors Inc. generated $294.44 million in direct revenue during the second quarter of 2018 — an increase of $23.12 million, or 8.5 percent, primarily because of more favorable pricing on oil products and growth in the business’ core service offerings.

Increased base and blended oil pricing, volumes and direct sales of blended oil accounted for $18.50 million in incremental direct revenue, according to management. Revenue generated through direct sales of packaging and blending services and other core service offerings (such as handling of containerized waste, vac services and sales of allied products) accounted for $11.70 million in incremental revenue, which more than offset an $8.50-million decrease in used oil collection revenue. Safety-Kleen also experienced $1.40 million in positive foreign currency translation during the quarter.

“We grew waste oil collection volumes from those of a year ago, while maintaining an average charge-for-oil position for those collected gallons,” said Chairman, President and CEO Alan McKim. “We continued to steadily grow direct lubricant sales through our closed-loop initiative, which has now surpassed 20,000 customers. Direct lubricant sales accounted for 6 percent of our total volumes sold in the quarter — up from the prior year and from the first quarter of 2018.”

Segment adjusted EBITDA increased 21.2 percent to $73.07 million, and adjusted EBITDA margins grew 260 basis points to 24.8 percent.

“For Safety-Kleen, the focus in the second half of the year will be on further enhancing margins through pricing strategies, continuing to advance our blended oil sales programs and capitalizing on cross-selling opportunities,” McKim stated.