Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, announced that its Safety-Kleen subsidiary is revising pricing related to collecting and managing used engine and industrial oils. Effective immediately, the Company will be targeting a broad range of rate changes across its used oil customer base.
“Pricing declines in base oil, vacuum gas oil (VGO) and recycled fuel oil (RFO) have materially lowered the value and return on our re-refined products,” said Brian Weber, President of Safety-Kleen Sustainability Solutions (SKSS). “The current conditions are showing no sign of easing, particularly with crude oil pricing softening. As a result, we must significantly raise our rates to address the market-derived pressure and avoid further deterioration in the financial performance of our SKSS segment. The rate adjustments will apply to U.S. and Canadian customers. In addition, we will be expanding our stop fee program to recoup some of the transportation and labor costs associated with our oil collection services, which have experienced meaningful inflation in recent years.
“These rate changes are needed for Safety-Kleen to continue to perform and be appropriately compensated for the safe, compliant and reliable waste oil collection services we provide to more than 100,000 customers across North America annually,” Weber concluded.
