UPDATE 2-Clean Harbors' Q2 rev to benefit from oil spill cleanup

Tue May 18, 2010 4:16pm EDT

* Sees 15 to 20 pct upside to Q2 Street rev est of $352 mln

* Involved in containment, removal, disposal activities (Recasts; adds details, updates share movement)

BANGALORE May 18 (Reuters) - Waste management company Clean Harbors Inc (CLH.N) expects the benefits of its services in the Gulf of Mexico oil spill to help second-quarter revenue better market expectations by 15 percent to 20 percent.

The company's shares, which rose as much as 5.5 percent, closed at $65.60 Tuesday on the New York Stock Exchange.

Analysts were expecting the clean-up efforts to add as much as $80 million each to Clean Harbors' revenue in 2010 and 2011, almost double the gains it made after Hurricane Katrina in 2005. [ID:nSGE6420IN]

According to Thomson Reuters I/B/E/S, analysts were expecting second-quarter revenue of $352 million, which would mean Clean Harbors reporting revenue of about $402 million to $422 million.

Clean Harbors said it was currently involved in many aspects of the oil spill response, including containment, removal, disposal and recycling of the recovered oil after Transocean's RIGN.S (RIG.N) Deepwater Horizon rig exploded and sank on April 21.

Since that day, Clean Harbors' stock has risen about 14 percent. But it has had a far from smooth rise.

While investors cheered the stock up after news of the oil spill, they also pushed the stock down when the company did not quantify the potential gains two weeks after the rig sank.

The rocketing share prices of the companies playing a part in tackling the oil spill was overdone, according to some analysts who said that the expected gains would likely fall short of expectations. [ID:nSGE6440JP]

Shares of water treatment services firm Nalco Holding Co NLC.N were down 3.5 percent Tuesday, despite the company saying a day earlier that the oil spill would add about $40 million in revenue. [ID:nSGE64G0LS] (Reporting by Adveith Nair and Krishna N. Das in Bangalore; Editing by Mike Miller and Maju Samuel)